Does Portsmouth need stronger short-term rental regulations? Case is made for and against

PORTSMOUTH – Balancing the rights of neighbors with the rights of short-term rental property owners was the main topic at Monday’s Town Council meeting.

The Town Council proposed some amendments to the short-term rental regulations, including the possibility of prohibiting these rentals in the “R10 district," which would include the Common Fence Point and Island Park areas. Those areas have narrow roads and are not considered prime areas for high volumes of cars or traffic.

The Town Council made no decision following Monday’s hearing deferring to the Planning Board and fire chief for more study.

Opinions were polarizing. Some claimed that some rental properties lead to loud house parties, attracting music and out-of-town summer revelers, which never were issues in these neighborhoods.

Some of these neighborhoods have small roads and block emergency vehicles and access. These homes bring strangers into neighborhoods as well, causing concern for neighbors.

Some claimed that these homes attract transient occupants who stop the sale of properties to locals, reducing affordable housing and the housing stock for those looking to move permanently into town.

Others argued that short-term rentals attract tourism and are good for local business.

Many concluded that the novelty of short-term rentals have made it difficult nationwide for local governments to regulate.

“The town of Portsmouth is a microcosm of how it has grown nationally and internationally,” said Town Planner Lea Hitchen.

Hitchen spoke at length about how the language and enforcement procedures are ambiguous.

Since 2018, she said STRs in Portsmouth have grown from 25 to 137, leading to some of the issues for STR owners and their neighbors.

She said the state has 13 bills trying to expand affordable housing but STRs are not factored into those prospective bills.

Hitchen indicated that there should be a prohibition in problem neighborhoods that could jeopardize safety but enforcement should not be overly punitive.

Hitchen mentioned pausing short-term rentals until a state commission, currently studying the issue, comes up with recommendations.

Increased fire codes for short-term rentals

“The term short-term rentals does not exist in the fire code,” said Fire Chief Paul Ford.

Ford detailed the ambiguity of STRs for fire officials who conduct fire and carbon dioxide alarm inspections before ownership of property is transferred.

Ford said that a single-family home, acting as an STR, could demand a fire sprinkler system if several people are living under the same roof.

However, such a demand on an owner would be costly and burdensome.

Ford said fire officials at the state level have been brainstorming how to resolve the issue so they are safe for occupants and neighbors yet fair to owners.

Ford said state fire codes are ambiguous with short-term rentals, not knowing if they should be classified under room and lodging – hotel-like rules – or single-family dwellings.

“At this point, unless the board tells me differently, we are not doing any inspections (of STRs) unless we have clearer confirmation,” he said.

Joseph Forgione, of Aquidneck Avenue, said that he and his wife live across the street and on property adjacent to short-term rentals. He said that their neighborhood once featured a diverse group of retired residents, summer residents and families with small children.

He said that STRs started as a strategy for residents to supplement their income to help pay mortgages.

“We have gone so far from that,” he said.

“All are ground zero for investment properties," he also said, adding, “People are turning them into hotels.”

Some recommended additional insurance for STRs or put a cap on the number of days renters can occupy the units.

Short-term rental complaints in Portsmouth

Michael Resnick, a lawyer representing STR owners, said that Portsmouth has done a great job with STRs and complaints and problems have been minimal.

Citing “known complaints,” he said in the past three years, there have been less than a handful of complaints per year.

“The reality is five complaints (in 2023) for 137 short-term rentals. I would say your ordinance is working,” Resnick said.

Resnick, citing his representation of STRs in Middletown and his research in other communities, says the concept appears to be working in Portsmouth.

He recommended homeowners associations for STRs to help regulate them. Resnick also recommended that the planning and zoning boards in town research the matter further while Ford works with state fire officials on the fire and emergency aspect of these cases.

Resnick also said that fines against STR violations could add up over time, leading to appeals in Superior Court, as well as lengthy and costly litigation for a community.

Town Councilor Daniela Abbott said that some “bad apples” have led to some of the complaints and problems for the town.

“Let's massage this into something that benefits what Portsmouth needs,” she said, adding that fire codes should be refined to reflect the intent of STRs.

This article originally appeared on The Providence Journal: Portsmouth short-term rental regulations under review