PORTSMOUTH — Owners of short-term rental properties could face new restrictions on how often they rent their homes, how many guests they accommodate and whether they must live on the premises under potential changes to a town ordinance that will be reviewed next week.

The Portsmouth Town Council will revisit the often-contentious issue of short-term rentals on Tuesday, Oct. 13, when it considers a report from Town Planner Lea Hitchen outlining possible revisions to the town’s regulations. The meeting starts at 7 p.m. at Town Hall.

Among the options are requiring new short-term rentals to be owner-occupied, establishing special-use permits for whole-house rentals, limiting the concentration of rental properties in neighborhoods and tightening occupancy and parking requirements.

No changes have been formally proposed, however, and town staff emphasized that the recommendations are intended to start a discussion, not endorse a particular approach.

The review comes as Portsmouth’s short-term rental market has grown considerably since the town adopted its ordinance in 2018. At that time, there were approximately 25 known short-term rentals. That number climbed to 137 in 2023 and now stands at about 140 active, registered properties.

The council requested the review in August, directing the Planning Department to examine current rental trends, regulations in neighboring communities and ways to protect the character of residential neighborhoods.

What could change?

One significant proposal would distinguish between two types of short-term rentals: those where the owner lives on the property during a guest’s stay and those where an entire dwelling is rented without the owner present.

Portsmouth currently allows short-term rentals by right in all residential zoning districts, meaning property owners do not need special-use permits. Renting rooms in an owner-occupied home is exempt from the town’s ordinance.

Under one option, new rentals would be limited to properties serving as the owner’s primary residence. Another possibility would allow homeowners to rent their properties for up to 14 nights annually without obtaining a special-use permit.

More frequent rentals, particularly those involving entire homes, could require approval from the zoning board of review.

Such a process would allow the town to consider neighborhood conditions, including parking, traffic, septic capacity and the proximity of other short-term rentals. Property owners seeking special-use permits would also have to notify neighbors within 200 feet.

The report also suggests considering limits on how many short-term rentals could operate within a particular neighborhood or distance from one another.

Other potential changes include stricter parking rules, requiring local property representatives to respond to complaints within a specified period, mandating insurance covering short-term rental activity and explicitly prohibiting parties, weddings and amplified outdoor entertainment.

Occupancy limits could also be revisited. Portsmouth currently allows two guests per bedroom, but children under 12 do not count toward that limit. Hitchen’s report raises concerns that large families could legally exceed the intended occupancy of a rental property.

How other towns compare

The planning department examined regulations in Middletown, Newport, Bristol and Warren.

Middletown requires new short-term rentals to be owner-occupied and obtain special-use permits. Bristol recently adopted similar restrictions, including a special-use permit requirement for rentals exceeding 14 nights annually.

Newport generally prohibits short-term rentals in residential zones unless the property is the owner’s primary residence, with limited exceptions.

Warren takes a different approach, capping registrations at 125 and imposing restrictions on the percentage of units in multifamily buildings that can be used as short-term rentals.

Portsmouth already has what Hitchen described as a solid regulatory framework, including annual registration, inspections, parking requirements, occupancy limits and escalating fines for violations.

The annual registration and inspection fee is $130.

Few complaints recorded

Despite concerns about neighborhood disruptions, the town has recorded relatively few formal complaints.

Over the past four years, 17 complaints were logged through the town’s short-term rental hotline. Police responded to two short-term rental-related incidents over the past two years, involving a large party and fireworks.

No short-term rental permits have been revoked, and the town’s zoning enforcement officer has not issued any violations under the ordinance, according to the report.

The council previously considered revisions in 2023 after complaints about neighborhood disturbances. That discussion attracted enough residents on both sides of the issue that the meeting was moved to a larger venue. Ultimately, the council tabled the matter without making changes.

State law also complicates potential restrictions. Although Rhode Island law protects the ability to offer rentals through qualifying online platforms, recent Superior Court decisions involving Newport have upheld municipal zoning authority. Those cases are now headed toward arguments before the state Supreme Court.

Hitchen recommends that the council hear from both supporters and opponents of short-term rentals and seek an advisory opinion from the planning board on how potential changes would align with the town’s Comprehensive Community Plan.

The goal, according to the report, is to balance tourism and economic opportunities with the need to protect neighborhoods and preserve housing for year-round residents.