Short Term Rentals in Moultonboro

[Lakegeezer]

Moultonboro is changing the way short-term rentals will be handled. The memo is posted on the town's web site at

https://www.moultonboroughnh.gov/m/n...ome/detail/314

There will no doubt be challenges and hopefully a grace period, but on the surface, there are some changes that might be felt for the 2026 season.

1. Commercial Reclassification: Your property is no longer viewed as a residential "Dwelling Unit" for zoning purposes; it is now classified as a "Bed & Breakfast" (or "Function Facility" if you host events), which is a commercial use.
   
2. Double Approval Required: You must now secure both a Special Exception from the Zoning Board of Adjustment (ZBA) and a Site Plan Review from the Planning Board. These are separate processes and strictly enforced.
   
3. Septic Cap: Your legal occupancy limit is now tied directly to your NHDES septic design capacity, not the number of beds or rooms you have available.
   
4. Grandfathering Challenge: By asserting that STRs were never compliant with the definition of a "Dwelling Unit" regarding transient guests, the Town is effectively arguing that no vested rights ("grandfathering") exist for current operators.

[garysanfran]

New Hampshire is rapidly becoming anti-tourist/vacationer. This is a dramatic shift in an historic paradigm.

Hotels will probably benefit, but the overall population of visitors will suffer thus affecting businesses that depend on the summer surge.

I suppose Lake traffic will diminish as might the road congestion.

[John Mercier]

I think we are becoming more nostalgic.

[BillTex]

Have you folks seen all the building in process around Winni? That will not ease congestion nor contribute to nostalgia…

[Lake Fan]

If these STR properties are in violation of existing zoning laws, getting a handle on them only makes sense, which should benefit residential home buyers, and the existing property owners who have had to put up with non-stop transients in their neighborhoods.

[John Mercier]

Originally Posted by BillTex

Have you folks seen all the building in process around Winni? That will not ease congestion nor contribute to nostalgia…

The options are to increase supply or decrease demand.

Building industry is working overtime to increase supply.

This local change, along with all the new State level property tax bills, is about decreasing demand.

One side is going to win.
We will either keep going to increase the supply or the regulation and taxation will take effect we stop building due to lack of demand.

[tis]

Originally Posted by John Mercier

The options are to increase supply or decrease demand.

Building industry is working overtime to increase supply.

This local change, along with all the new State level property tax bills, is about decreasing demand.

One side is going to win.
We will either keep going to increase the supply or the regulation and taxation will take effect we stop building due to lack of demand.

I agree, things have unintended consequences. At what point will people reach their saturation point and therefore building slow down? And then there will be even less housing which is what the lawmakers claim is their purpose. (But I can't think there are too many that can afford to rent an empty lake house for 6 months so not sure how much that will help) Because of the already high lake taxes many HAVE to rent to keep their property. Some people don't like the STRs but the high taxes have caused a lot of them. I know some are businesses but a lot are just individuals.

[Biggd]

It's all money driven, when the money stops things will slow down. When that will be, no one knows.

[Garcia]

Short-term rentals can be a real benefit to homeowners and the broader community by meeting lodging needs that traditional hotels often cannot. What began as a way for homeowners to earn modest income from an otherwise unused property, however, has evolved into a different market altogether. In many areas, investors now purchase desirable housing specifically to operate short-term rentals, driving up home prices and reducing the supply of long-term rental housing. As a result, communities are left trying to regulate an industry after it has already reshaped the housing market—putting towns in the difficult position of responding after the genie is out of the bottle.

[tis]

Originally Posted by Garcia

Short-term rentals can be a real benefit to homeowners and the broader community by meeting lodging needs that traditional hotels often cannot. What began as a way for homeowners to earn modest income from an otherwise unused property, however, has evolved into a different market altogether. In many areas, investors now purchase desirable housing specifically to operate short-term rentals, driving up home prices and reducing the supply of long-term rental housing. As a result, communities are left trying to regulate an industry after it has already reshaped the housing market—putting towns in the difficult position of responding after the genie is out of the bottle.

You are right. And you know what? The high taxes put most of the "cottage colonies" out of business so what happened is vacationers don't have a lot of places to stay. If that hadn't happened there might not have been the appetite for STRs. Again, unintended consequences. Maybe we should leave stuff alone.

[John Mercier]

I'll take the Lake Estate over the Anchorage any day.

[lakewinnie]

This is the first I have seen or heard of this policy change. Does anyone know if it affects rentals in Suissevale?

I can tell you that renters there have overwhelmed the community during the summer months. The beach is basically unusable from July through mid-August. We see rental homes with huge numbers of guests and water usage has been an issue now for years.

[tis]

Originally Posted by lakewinnie

This is the first I have seen or heard of this policy change. Does anyone know if it affects rentals in Suissevale?

I can tell you that renters there have overwhelmed the community during the summer months. The beach is basically unusable from July through mid-August. We see rental homes with huge numbers of guests and water usage has been an issue now for years.

Well if some of these state bills pass you will have MORE people on your beach because people will be punished if they don't rent their homes. They say it's not fair for homes to sit empty.

[John Mercier]

Originally Posted by tis

Well if some of these state bills pass you will have MORE people on your beach because people will be punished if they don't rent their homes. They say it's not fair for homes to sit empty.

STRs are not protected by any of the proposed State tax bills.

If they choose for it not to be their primary home, or to lease it at least six months to one lease... they would pay the higher taxes.

[tis]

Originally Posted by John Mercier

STRs are not protected by any of the proposed State tax bills.

If they choose for it not to be their primary home, or to lease it at least six months to one lease... they would pay the higher taxes.

True but one of the comments by one of the bills sponsors implied that it wasn't fair to leave houses unoccupied when people need housing. So forcing people to rent an empty house and maybe even telling them house much they can rent it for can't be far behind. How many people do you think will NOT SELL their second homes if this is the way we are headed?

[John Mercier]

Several.

They have home sitters for the months they are not here and will simply work a lease as part of the deal for them.

It is the other bills that they cannot easily escape.

[longislander]

Just finished watching the video on tonight's Planning Board. The new town planner from Vermont and his "mandate" did not seem to be accepted by the planning board; even his interpretation of "dwelling unit" was not accepted by all on the board. He and a board member, both read the term in the present zoning ordinance and had different interpretations.

Moultonborough has been staying away from STR's for at least 3 years, especially watching what was going on in Conway.
Since when does a town planner create town ordinances? If town STR regulations don't exist (as in MoBo) who is he to lower his lance?

Attorneys should be salivating, if the land use dept. is allowed to go off the rails.

[Biggd]

Originally Posted by tis

You are right. And you know what? The high taxes put most of the "cottage colonies" out of business so what happened is vacationers don't have a lot of places to stay. If that hadn't happened there might not have been the appetite for STRs. Again, unintended consequences. Maybe we should leave stuff alone.

STR are great if you're looking to rent, not so great if you own and there's one right next to you!
There needs to be restrictions, there are too many abusers. You shouldn't be able to rent your home like a hotel room.

[tis]

Originally Posted by Biggd

STR are great if you're looking to rent, not so great if you own and there's one right next to you!
There needs to be restrictions, there are too many abusers. You shouldn't be able to rent your home like a hotel room.

I agree. It's sad but it's the unintended consequences of high taxes on the lake, cottage colonies are gone and this is the result.

As far as having one next door to you, if current laws were enforced we wouldn't need more. noise, septic restrictions etc. But who is going to enforce it? It's possible to rent to nice quiet people but it should be controlled by the owners.

[longislander]

Surprised there has been no thread on ADU's ... Additional Dwelling Units that many towns, like Moultonborough have/had that forbade "detached" ADU as opposed to "attached" ADU's.

The connection to this thread is STR's. Folks renting out their properties. It became NH law July 1, 2025. I suspect most folks are not aware or do not understand the potential ramifications. This law was passed "by right" which negates town ordinances. Housing issue!

https://legiscan.com/NH/text/HB577/id/3063115

Laws:
https://gc.nh.gov/rsa/html/LXIV/674/674-71.htm
https://gc.nh.gov/rsa/html/LXIV/674/674-72.htm
https://gc.nh.gov/rsa/html/LXIV/674/674-73.htm


Also, HOA's.
Check your deeds for HOA and bylaws; condo or ....
Might affect effectivity. Condos maybe not. Most HOA's in Moultponborough are based on RSA 292 and probably are affected, whether the HOA want ADU's or not in the bylaws.
https://gc.nh.gov/rsa/html/NHTOC/NHTOC-XXVII-292.htm

This is not legal advice. I am not an attorney that can legally give legal advice.

[Biggd]

The thing with ADU's is that if you're on septic you can't add another living space without making your septic system larger. Also, someone adding an ADU is generally a resident and will be on site full time. These investors buying homes for STR rentals are running them as a business and many are nowhere to be found when there's a complaint.

[longislander]

Detached, depending on how far from the residence would probably have its own septic and well. "Resident"is legally defined. Doesn't mean no cheating, however.

Agree on STR's being used as businesses in many places ... but not in Moultonborough, according to town complaint data. I doubt lakefront properties are using STR's, especially.

[longislander]

ADUs are much easier to do since the laws have changed. We built a detached ADU in Moultonborough (just received CO). It is part of a 54X60 storage building/ shop. We did not need to go before the planning board. https://www.nhmunicipal.org/s...on-ts-2025.pdf

Couldn't open the link. Is it this:

https://www.nhmunicipal.org/sites/de...ce_revised.pdf

[VitaBene]

Originally Posted by longislander

Detached, depending on how far from the residence would probably have its own septic and well. "Resident"is legally defined. Doesn't mean no cheating, however.

Agree on STR's being used as businesses in many places ... but not in Moultonborough, according to town complaint data. I doubt lakefront properties are using STR's, especially.

I know of multiple lakefront houses being used as STRs

[Biggd]

Originally Posted by longislander

Detached, depending on how far from the residence would probably have its own septic and well. "Resident"is legally defined. Doesn't mean no cheating, however.

Agree on STR's being used as businesses in many places ... but not in Moultonborough, according to town complaint data. I doubt lakefront properties are using STR's, especially.

I have friends that rent STR homes on the lake in Moultonborough every year. They rent them for the week, but they are priced by the day. They rent big homes and stuff 3 or 4 families in it for the week. They rent different places every year because they are not welcomed back!

[longislander]

Biggd

I have friends that rent STR homes on the lake in Moultonborough every year. They rent them for the week, but they are priced by the day. They rent big homes and stuff 3 or 4 families in it for the week. They rent different places every year because they are not welcomed back!

Why are they not welcomed back? The owner got STR money and the renters got the premise. Are they still your friends?

[VitaBene]

Originally Posted by longislander

Surprised there has been no thread on ADU's ... Additional Dwelling Units that many towns, like Moultonborough have/had that forbade "detached" ADU as opposed to "attached" ADU's.

The connection to this thread is STR's. Folks renting out their properties. It became NH law July 1, 2025. I suspect most folks are not aware or do not understand the potential ramifications. This law was passed "by right" which negates town ordinances. Housing issue!

https://legiscan.com/NH/text/HB577/id/3063115

Laws:
https://gc.nh.gov/rsa/html/LXIV/674/674-71.htm
https://gc.nh.gov/rsa/html/LXIV/674/674-72.htm
https://gc.nh.gov/rsa/html/LXIV/674/674-73.htm


Also, HOA's.
Check your deeds for HOA and bylaws; condo or ....
Might affect effectivity. Condos maybe not. Most HOA's in Moultponborough are based on RSA 292 and probably are affected, whether the HOA want ADU's or not in the bylaws.
https://gc.nh.gov/rsa/html/NHTOC/NHTOC-XXVII-292.htm

This is not legal advice. I am not an attorney that can legally give legal advice.

ADUs are much easier to do since the laws have changed. We built a detached ADU in Moultonborough (just received CO). It is part of a 54X60 storage building/ shop. We did not need to go before the planning board. http://https://www.nhmunicipal.org/sites/default/files/uploads/Guidance_Documents/adu-do-s-and-don-ts-2025.pdf

STRs have greatly impacted the cost of homes in the lakes region and availability to those that support the tourists. You cant stuff 14 people in a house week after week and not expect septic systems to fail. Anyone that lives near CH knows the house on the road to the town docks- it is jammed all summer with people, I would lve to see their septic design!

[tis]

Originally Posted by VitaBene

ADUs are much easier to do since the laws have changed. We built a detached ADU in Moultonborough (just received CO). It is part of a 54X60 storage building/ shop. We did not need to go before the planning board. http://https://www.nhmunicipal.org/s...on-ts-2025.pdf

STRs have greatly impacted the cost of homes in the lakes region and availability to those that support the tourists. You cant stuff 14 people in a house week after week and not expect septic systems to fail. Anyone that lives near CH knows the house on the road to the town docks- it is jammed all summer with people, I would lve to see their septic design!

I don't understand why anybody would want to rent their house allowing 14 people. Not only the septic but wear and tear from that many people.

[John Mercier]

Originally Posted by tis

I agree. It's sad but it's the unintended consequences of high taxes on the lake, cottage colonies are gone and this is the result.

As far as having one next door to you, if current laws were enforced we wouldn't need more. noise, septic restrictions etc. But who is going to enforce it? It's possible to rent to nice quiet people but it should be controlled by the owners.

High assessments. Cottage colonies didn't provide the same ROI as can be achieved through a higher end offering.

The owners sold them, they become the higher end offering, and the assessments went up.

Same reason for going after marinas.
Higher end services can be provided to achieve higher revenue streams and a greater ROI.

[tis]

Originally Posted by John Mercier

High assessments. Cottage colonies didn't provide the same ROI as can be achieved through a higher end offering.

The owners sold them, they become the higher end offering, and the assessments went up.

Same reason for going after marinas.
Higher end services can be provided to achieve higher revenue streams and a greater ROI.

But back in the day lots made a living with them or they would have sold them sooner. When taxes and expenses got so high the rent couldn't keep up is when they all started selling them.

[longislander]

I know of multiple lakefront houses being used as STRs

Any complaints, or are they being reasonable?

[John Mercier]

Originally Posted by tis

But back in the day lots made a living with them or they would have sold them sooner. When taxes and expenses got so high the rent couldn't keep up is when they all started selling them.

Sometimes not about losing money, just too good an offer not to accept.

[tis]

Originally Posted by John Mercier

Sometimes not about losing money, just too good an offer not to accept.

That too. The property appreciating so much contributes in more ways than one.

[John Mercier]

The appreciation is what shifts the taxes.
Even if the budgets are the same, the shift in valuation to a certain classification of property increased the amount of the overall tax that they pay.

But that is the market.
More people desire a certain classification of property the more that property rises.

Since we can't just "build" new lakefront, that classification assessment tends to rise faster than others - not always, but in general - as those that are wealthy bid up the value.

"The population of the ultra-wealthy is also growing rapidly. The number of ultra-high-net-worth Americans, or those worth $30 million or more, grew 6.5% in the first half of 2025, after surging 21% last year, according to a new report from Altrata. There are now 208,090 ultra-high-net-worth individuals in the U.S., accounting for 41% of the world’s total."

This is what Winnisquam was talking about.
The area is attracting both Americans in this group along with the 59% that are not Americans.

Could we interest them in renting a cabin/cottage in the cottage colonies?
Maybe but that would require a lot of upgrades to facilities and services.

[Woodsy]

In the not too distant past, people usually didn't mind if their neighbors rented out the lake cottage for a week or two here and there to cover the taxes and upkeep. Lots of people did this and were respectful of the neighborhood and the people that lived there.

Now we have Airbnb & VRBO, people are gobbling up homes for the sole purpose of making money in an STR business model. There is no respect or consideration given to the neighbors & the impact the STR's have. Nobody wants to live next door to what is essentially an unlicensed no tell motel.

Unfortunately, the only way out of this mess is thru regulation. You cannot count on humans to act decently anymore.

Woodsy

[longislander]

I should added the renter's parties were an easy fix. I moved because my neighbors (owners) were just as bad or worse than the renters.

[Biggd]

Originally Posted by longislander

I should added the renter's parties were an easy fix. I moved because my neighbors (owners) were just as bad or worse than the renters.

I had a home across the street from me that was a STR for one year during covid. Fortunately, the value went up sooo much in that one year that the investors decided to cash in. They bought it for $720K and sold it for just over one million. The new owners are great, although we had to live through a year of construction as they completely remodeled the place, inside and out. That's been a common theme in my neighborhood over the past 4 years, but I guess it's better than people letting their homes fall into disrepair.