Many cities and towns struggle to balance short term rental with affordable housing. Advocates for short term rental say it encourages property improvements and neighborhood revitalization. They believe private property owners use should be free from government intervention.
Short term rental opponents say owner occupancy and long term leases foster community. They argue that short term rental erodes that community. They also contend that STR contributes to high housing prices. By removing inventory from the market, STR reduces long term housing supply.
Portland, South Portland and Cape Elizabeth Maine are not immune to short term rental controversy. Both passed STR ordinances in 2018 after contentious debate. These laws restrict the time, place and type of short term rental activity. You can find recaps of Portland, South Portland and Cape Elizabeth STR regulations at the bottom of the page.
Insurance for Short Term Rentals in Maine
Thinking of renting your Maine property on AirBnb, HomeAway, VRBO or another short term rental platform? Check with your insurance agent. You may need special insurance to protect yourself. STR platforms also include insurance for hosts. Most of this insurance is supplemental. It’s not intended to replace your primary insurance policy.
If you need insurance for your short term rental property in the Portland Maine area, contact Noyes Hall & Allen Insurance in South Portland at 207-799-5541. If you meet Portland or South Portland’s STR laws, we may help you choose the best insurance value. We’re independent and committed to you.
Portland Maine Short Term Rental Law
This information is current as of 12/1/18 (Code of Ordinances Sec 6-150 et seq.)
- Short-term rental operators must register yearly and pay a fee.
- Maximum of 400 unhosted units allowed on mainland.
- Property owners may register up to 5 STR units combined.
- Up to 5 units within primary residence (bedrooms, separate spaces, etc.)
- Non-owner-occupied single-family homes and condominium units may not be rented out short term.
- Only homes or apartments used as a primary residence can be registered as owner-occupied.
- No more than two short-term rental guests are allowed per bedroom. Two more may use other areas for sleeping.
- multi-unit buildings have their own rules (below)
South Portland Maine Short Term Rental Law
Current as of 1/1/2019 (Ordinance #22-17/18)
- Unhosted non-owner-occupied short-term rentals prohibited in residential zones (single-family home owners may rent their primary homes up to 14 days per year).
- Owner-occupied short-term rentals allowed under certain conditions in residential zones.
- Requires city-issued registration number in STR advertisement
- Short-term rental operators must register yearly and pay a fee.
- Short-term rental operators must also be inspected, insured, and licensed by the city and collect Maine sales tax.
- No more than two short-term rental guests are allowed per bedroom and six total per occupancy.
Cape Elizabeth Maine Short Term Rental Law
Current as of 1/1/2019 (Zoning Ordinance, Chapter 19)
- Apply to Town Code Enforcement Officer for a STR permit.
- No permit required for < 14 days per year
- For non-owner occupied properties,
- No more than 12 tenants at a time from May 1 to October 31
- No more than 2 tenants per bedroom.
- No more than 8 tenants at a time.
- No more than 2 weeks rental per month
- 7 day minimum rental period
Maine Sales Tax on Short Term Rentals
The State of Maine requires owners of “casual rental” property to pay 9% sales tax. Properties rented fewer than 15 days per year are exempt. For more information about sales tax on short term rental, see Maine Revenue Services Bulletin 32.