Portland Short-Term Rental Rules Explained

Thinking about buying or selling a Portland property with Airbnb or vacation-rental potential? Short-term rental rules can make or break that plan. You want a clear path, no surprises at closing, and confidence that your numbers pencil out. In this guide, you’ll learn how Portland, Maine approaches short-term rentals, what to verify before you buy or list, and how to set up a compliant, guest-ready property. Let’s dive in.

What counts as a short-term rental

Short-term rentals are typically furnished stays for a limited number of nights. Cities often define them by a maximum stay length, such as fewer than 30 days, but you should confirm Portland’s exact definition before making decisions. The definition matters because it determines which rules and taxes apply.

If you are purchasing a home already used for short-term rentals, request documentation that shows how the property has been operated. This includes permits, tax registrations, inspection reports, and booking history.

Can you run an STR in Portland?

The answer depends on where the property is located, how it will be used, and whether you meet city requirements. Portland’s policies are set at the municipal level, while taxes and certain safety laws are set at the state level. Your due diligence should address all of the following.

Zoning basics

Zoning determines whether a short-term rental is permitted at a specific address. Residential districts, mixed-use areas, and commercial zones can have different rules.

• Verify the property’s zoning district against the city zoning map and code.
• Confirm whether non-owner-occupied STRs are allowed in that district.
• Check for overlay zones or neighborhood caps that may limit the number or type of STRs.
• Review parking requirements or any limits on occupancy that apply in the area.

Owner occupancy and unit types

Some cities allow only owner-occupied or primary-residence STRs, while others allow non-owner-occupied units in certain districts. Portland may treat single-family homes, accessory dwelling units, multi-unit buildings, and condos differently.

• Confirm whether owner occupancy is required.
• Ask how the city counts “primary residence.”
• Verify rules specific to single-family homes, ADUs, multi-family properties, and condos.

Condos, HOAs, and leases

Even if a property is allowed by city rules, a condo association, HOA, or lease may restrict short-term rentals.

• Request the full condo declaration, bylaws, house rules, and any rental policies.
• If tenant-occupied, review the lease for subleasing or short-term rental prohibitions.
• Get written confirmation from the association or landlord, as applicable.

Steps to start legally

While exact steps can vary by property type, this framework will help you move from idea to compliant operation.

1. Confirm zoning and eligibility

• Identify the property’s zoning district and read the city’s STR guidance for that district.
• Ask the city whether non-owner-occupied STRs are allowed at your address.
• If in a historic area or overlay zone, verify any special requirements.

2. Check association rules and deed restrictions

• Review condo/HOA documents for rental restrictions or caps.
• Confirm whether you must register the STR with the association.

3. Gather documentation

• Proof of ownership and, if required, proof of primary residence.
• Floor plan and unit layout, including bedroom count.
• Safety checklist for smoke/CO alarms, egress, and fire extinguisher locations.

4. Register with the city if required

• Apply for the city’s STR registration or license.
• Pay any fees and schedule required inspections.
• Post your permit/registration number as the city instructs.

5. Prepare the unit for safety and compliance

• Install and test smoke and carbon monoxide alarms.
• Provide fire extinguishers in required locations.
• Ensure all bedrooms meet egress requirements and hallways/stairs are clear.
• Post emergency contact info and house rules inside the unit.

6. Set up taxes

• Register with Maine Revenue Services as needed for state lodging and sales tax.
• Confirm whether the City of Portland requires a local lodging or occupancy tax registration and filing.
• Understand what the booking platform may collect on your behalf and what you still must file.

7. Publish listings the right way

• Include any required license or registration numbers in your listing.
• Accurately represent occupancy, parking, and house rules to prevent complaints.

8. Maintain records

• Track nights rented, gross receipts, and tax filings.
• Keep inspection reports and registration renewals current.

Taxes and money

Short-term rentals typically trigger several layers of taxes and filings.

• State taxes: Maine generally taxes short-term lodging. You may need to register with Maine Revenue Services, collect tax on stays, and file returns.
• Local taxes: Portland may impose a local lodging or occupancy tax. Confirm whether you must register with the city’s finance or revenue office and file periodic returns.
• Platform collection: Some platforms collect and remit certain taxes automatically. This does not always replace your duty to register or to file local returns.
• Income taxes: Report net rental income on federal and Maine income tax returns. Deductions and treatment can vary depending on how you use the property. Consider working with a CPA who understands Maine short-term rental rules.

Build conservative pro formas that include registration fees, inspections, higher insurance premiums if applicable, reserve for repairs, professional cleaning, and seasonal demand swings.

Safety, building codes, and inspections

Life-safety compliance is central to operating an STR, and inspections may be required to obtain or renew a city registration.

• Smoke and carbon monoxide alarms: Install per code and test regularly.
• Egress: Bedrooms must have proper emergency exits. Basement units often need special attention to meet egress and ceiling height standards.
• Fire extinguishers and signage: Place extinguishers as required and post clear emergency contact information.
• Accessibility and multifamily rules: Multi-unit buildings may have additional code requirements. Confirm whether common areas must meet any specific standards.

Document your safety checks, and keep a 24/7 local contact ready to respond to guest issues or neighbor concerns.

Enforcement and compliance risk

Cities enforce STR rules through complaint-driven investigations and routine audits. Noncompliance can be costly.

• Complaints: Neighbors can report noise, parking, trash, or suspected unlicensed activity. The city may inspect and require proof of registration.
• Penalties: Expect fines for unlicensed operation or safety violations and possible license suspension for repeat offenses.
• Platform coordination: Platforms may delist units that operate without required local numbers if the city notifies them.

Good neighbor practices reduce risk: accurate occupancy limits, clear quiet hours, trash set-out instructions, and a quick, local response to any issue.

Due diligence checklist for Portland buyers and sellers

Use this list to protect your deal and your operating plan.

• Verify the current City of Portland STR ordinance and definitions.
• Confirm the property’s zoning and whether non-owner-occupied STRs are allowed there.
• Determine if a city registration or license is required and whether it is transferable upon sale.
• Obtain the property’s STR permit history from the city, including any violations.
• Request and review condo/HOA governing documents and rental policies.
• Contact Maine Revenue Services for state tax registration and filing rules.
• Ask the City of Portland finance/revenue office about any local lodging taxes.
• Speak with your lender about STR use and any mortgage covenants.
• Call your insurance agent about STR coverage or endorsements.
• Identify required safety items and schedule any needed inspections.
• Gather market data on occupancy, average daily rate, and seasonality to test your revenue assumptions.

Buying or selling a property with an existing STR

If the property already operates as a short-term rental, focus on transferability and continuity.

• Transferability: Some permits do not transfer, or they transfer only if the property remains owner-occupied. Confirm the rule that applies.
• Active status: Check that the permit is active and in good standing with no unpaid fines.
• Taxes: Verify state and local tax accounts are current. Request recent filings or official confirmations.
• Safety: Ask for the latest inspection report and proof that any corrections were completed.
• Calendar and contracts: Review existing reservations and refund obligations. Decide how you will handle bookings that occur after closing.

Build appropriate contingencies into your purchase and sale agreement so you can exit or adjust terms if the STR plan is not feasible under current rules.

How we can help you move forward

You do not have to figure this out alone. With deep knowledge of southern Maine neighborhoods and investment scenarios, our team helps you:

• Identify properties and submarkets that align with your STR goals.
• Verify zoning and gather permit history from the city.
• Coordinate with lenders, insurers, and local professionals so you launch on solid footing.
• Pressure-test revenue models with realistic seasonality and expense assumptions.

If you are exploring a Portland purchase or prepping a property for market, reach out to Unknown Company for local guidance tailored to your goals.

FAQs

Are short-term rentals legal in the City of Portland?

• Yes, if you comply with the city’s zoning, registration, and safety requirements and meet applicable state and local tax obligations; always verify current rules with the city before you buy or list.

Do I need to live in the property to host an STR in Portland?

• Some cities require owner occupancy or limit non-owner-occupied units by district; check Portland’s current definition of primary residence and permitted unit types for your address.

What taxes apply to Portland short-term rental income?

• Expect Maine state lodging-related taxes and potentially a local lodging or occupancy tax; confirm registration and filing steps with Maine Revenue Services and the City of Portland finance office.

Are condos, ADUs, or multi-unit buildings eligible for STR use?

• Eligibility depends on zoning, building type, and association rules; verify the district’s allowances and obtain condo/HOA documents before you commit.

Do STR permits in Portland transfer when a property is sold?

• Some permits do not transfer, or they transfer only under specific conditions; request the property’s permit record and written confirmation from the city during due diligence.

How are neighbor complaints handled for Portland STRs?

• Complaints typically go to city code enforcement and can trigger inspections, fines, or license action; maintaining a 24/7 local contact and clear house rules helps prevent issues.