Kennebunkport Short-Term Rental Regulations

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Permit & Licensing

Short-Term Rental License

This permit type does not require primary residence. Zoning restriction: Permitted for legally existing residential dwelling units town-wide; accessory apartments constructed or permitted after November 3, 2009, and recreational vehicles, trailers, or tents are prohibited from short-term rental use.

Application Process

Submit a short-term rental license application to the Town Clerk (accepted beginning in October for the upcoming calendar year) with the license fee; applicant certifies compliance with the § 129-7 standards and Building Code. The Code Enforcement Officer inspects the licensed premises once every five years. Preexisting STRs with documented 2019-2021 use may be licensed without a prior inspection.

Tax Obligations

Combined rate: 9% of gross rental income.

Collection: Self-remit: every person who owns, manages, or operates the rental, or who collects rental payments on behalf of the owner (including agents and property managers), must register with Maine Revenue Services and collect and remit the 9% sales tax.

Rental Limits

Kennebunkport does not impose an annual cap on the number of nights you can rent. Each individual stay must be less than 30 consecutive days.

Occupancy & Density Limits

Maximum two tenants per bedroom plus two additional tenants per dwelling unit (e.g., a three-bedroom short-term rental = eight tenants maximum).

Zoning & Restrictions

Permitted for legally existing residential dwelling units town-wide; the Goose Rocks Beach Neighborhood requires a license but is exempt from the annual license cap. Accessory apartments built/permitted after November 3, 2009, RVs, trailers, and tents may not be used as STRs.

Insurance & Safety

Insurance

Kennebunkport does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Smoke alarms in each bedroom, outside each separate sleeping area in the immediate vicinity of the bedrooms, and on each additional story including basements and habitable attics
• Carbon monoxide alarm outside each bedroom in the immediate vicinity of the bedrooms if the house has an attached garage or a fuel-fired appliance
• At least one portable fire extinguisher mounted in a prominent location (one size/type 2/A, or two size/type 1/A extinguishers)
• Floor plans showing the location of the alarms and fire extinguisher(s)
• Adequate sanitary waste disposal in compliance with the Maine Subsurface Wastewater Disposal Rules or served by public sewer
• Designated on-site parking spaces for tenants and guests; guest vehicles limited to the number of designated on-site spaces

Penalties for Non-Compliance

License may be conditioned, suspended, or revoked by the Board of Selectmen after a public hearing; the Town may additionally prohibit the owner from licensing the dwelling unit for 12 months following the current license expiration; violations are subject to fines and penalties per a penalty schedule established by the Board of Selectmen; the Town may seek injunctive relief and recover enforcement costs including reasonable attorneys' fees.

Platform Requirements

• It is unlawful to advertise an unlicensed short-term rental
• All advertisements must include the current short-term rental license number, and advertising must be consistent with the terms of the license.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Kennebunkport:

1. Meet safety requirements. Smoke alarms in each bedroom, outside each separate sleeping area in the immediate vicinity of the bedrooms, and on each additional story including basements and habitable attics. Carbon monoxide alarm outside each bedroom in the immediate vicinity of the bedrooms if the house has an attached garage or a fuel-fired appliance. At least one portable fire extinguisher mounted in a prominent location (one size/type 2/A, or two size/type 1/A extinguishers). Floor plans showing the location of the alarms and fire extinguisher(s). Adequate sanitary waste disposal in compliance with the Maine Subsurface Wastewater Disposal Rules or served by public sewer. Designated on-site parking spaces for tenants and guests; guest vehicles limited to the number of designated on-site spaces.
2. Apply for Short-Term Rental License. Submit application + $325-$575 fee.
3. Register for tax accounts. Set up lodging tax accounts with Maine Revenue Services (Sales, Fuel & Special Tax Division).
4. Display your permit number. Include your permit/license number in all listings and advertisements.
5. Collect and remit taxes. 9% on all bookings.
6. Renew annually. $325-$575 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Kennebunkport?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Kennebunkport requires a Short-Term Rental License.

Does Kennebunkport require a short-term rental to be your primary residence?

No. Kennebunkport allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Kennebunkport?

Kennebunkport does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Kennebunkport?

Short-term rental stays in Kennebunkport are subject to a 9% Maine Sales Tax on Rental of Living Quarters (Lodging Tax). The host is responsible for collecting and remitting it.