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Issue · Laconia, NH

Short-term Rental Zoning Regulations

Requests to allow short-term rentals in residential zones create conflicts over neighborhood character, income for owners, and enforcement.

Overview

A variance denial at the Zoning Board of Adjustment on May 19, 2026 blocked continued short-term rentals at 39 Gale Avenue under new RS-zone restrictions for multi-family properties. This prompted a June 8, 2026 City Council request to reconsider regulations allowing owner-occupied short-term rentals for supplemental income.

Background

The short-term rental issue first surfaced at the Zoning Board of Adjustment when an applicant sought a variance to continue operating short-term lodging in a multi-family residence at 39 Gale Avenue after her prior permit lapsed and new restrictions took effect in RS zones.

At the May 19, 2026 meeting the board denied the variance because the property is multi-family in an RS zone and failed to meet the hardship criteria, with the motion passing 3 in favor and 2 abstaining.

The denial prompted resident Fran Keroselli to address the City Council on June 8, 2026, requesting reconsideration of Airbnb requirements specifically to permit owner-occupied short-term rentals as a source of supplemental income.

Council protocol limited discussion to listening only, leaving the existing zoning framework unchanged.

The sequence shows a direct causal link from the variance denial under the new ordinance to the subsequent policy-reconsideration request at the council level.

Prior to the May 19 denial at 39 Gale Avenue, the Zoning Board of Adjustment on April 20, 2026, denied two additional short-term rental variance requests at 48 Colonial Road and 34 Moral Street in residential zones, both on grounds that applicants failed to meet the legal hardship criteria despite citing financial need and on-site management.

How it unfolded
Board denied variance for short-term rental at 48 Colonial Road (ZB2026-454) because applicants did not meet the hardship criteria (Category 5) and the property could still be used for long-term rentals. Board also denied application for a two-family home as short-term lodging at 34 Moral Street in RG zone with 4 in favor, 1 abstention because applicants failed to meet hardship criteria for a multi-family unit.
2026-04-20Zoning Board Of Adjustment
Meeting →
Board denied variance for short-term rental at 39 Gale Avenue (Article 7, Section 194) with 3 in favor, 2 abstaining because the property is multi-family in an RS zone and failed to meet the hardship criteria.
2026-05-19Zoning Board Of Adjustment
Meeting →
Fran Keroselli requested reconsideration of Airbnb regulations to allow owner-occupied short-term rentals for supplemental income; council listened without formal discussion or Q&A.
2026-06-08City Council
Meeting →
Arguments in favor
Applicant is a model host who lives on-site and manages the property actively to prevent typical transient rental issues.
zoning-board-of-adjustment 2026-05-19
For
Short-term rentals managed by the owner are preferable to local long-term rentals.
zoning-board-of-adjustment 2026-05-19
For
Owner-occupied short-term rentals would provide beneficial supplemental income for residents, particularly seniors facing rising costs.
city-council 2026-06-08
For
Short-term rental variance needed to supplement household income following a medical-related loss of income, with applicants living on-site and managing the property responsibly.
zoning-board-of-adjustment 2026-04-20
For
Arguments against
The request fails to meet the hardship criteria required for a variance.
zoning-board-of-adjustment 2026-05-19
Against
Short-term lodging is restricted for multi-family units in RS zones under the new ordinance.
zoning-board-of-adjustment 2026-05-19
Against
Allowing such variances would conflict with strict adherence to ordinance intent and neighborhood character concerns.
zoning-board-of-adjustment 2026-05-19
Against
Key voices
“Requested a reconsideration of Airbnb requirements to allow owner-occupied short-term rentals to help residents with rising costs.”
Fran Kerosellicity-council 2026-06-08
“Christine is an ideal short-term host because she lives on-site and short-term rentals are better managed than the long-term rentals in the area.”
Neighborzoning-board-of-adjustment 2026-05-19
“Explained the need for a short-term rental variance to supplement household income following a medical-related loss of income and emphasized living on-site to manage the property responsibly.”
Residentzoning-board-of-adjustment 2026-04-20
Where it was discussed
Meetings that took up this issue.
Zoning Board Of Adjustment
2026-05-19denied short-term rental variance at 39 Gale Avenue (3-0 with 2 abstentions)
Meeting →
City Council
2026-06-08public comments requested ordinance changes to allow owner-occupied short-term rentals
Meeting →
short-term rentalairbnbshort-term lodging