Hosts of short-term rentals that are now banned in Burlington are suing the city over an ordinance designed to crack down on their operations.

Filed last month, the lawsuit argues that state law prohibits the city from regulating the length of time a dwelling unit is rented. It also says existing hosts should be exempted from the new rules and asks for a court order allowing their "pre-existing, lawful, non-conforming" businesses to continue operating.

The suit lists a dozen plaintiffs, though some are the same person with multiple business names. The filing suggests that they collectively own close to 30 short-term rentals, mostly in the Old North End.

A victory in court would undoubtedly have implications for other Vermont communities that want to rein in short-term rentals. The state's stock of the rentals has grown 13 percent in the past year, according to recent data from industry analyst group AirDNA. Some officials, including in Burlington, have argued that the units contribute to the housing crisis by taking away from the long-term rental supply.
Burlington has more than 200 short-term rentals on sites such as Airbnb and Vrbo. After wrestling with the issue for years, the city council approved an ordinance last summer to regulate the short-term rental market. The ordinance defines the rentals as dwelling units that are rented for fewer than 30 consecutive days and for more than 14 days in a 12-month period.

In Burlington, hosts can rent out their primary home; an apartment in the building where they live; or an outbuilding on their lot — but they can only have one of these "whole-unit" rentals. They also must live on-site, with few exceptions. Violations are punishable with a $100 ticket, a penalty that some say is too lax.

The city gave hosts until the end of May to come into compliance, but many haven't. A Seven Days review of online listings in June found at least 20 units whose owners were flouting the ordinance. Several of them are plaintiffs in the lawsuit.


“Whether a property or unit is rented for 31 days or 29 days, the unit and the functional use remain the same," the lawsuit reads. "Regardless of rental length, person or persons 'inhabit' in the unit — they eat, sleep, watch TV, bathe, cook and rest there.”
The hosts also argue that enforcing the ordinance will harm their "financial stability." Most units are rented for several hundred dollars a night. One of the more expensive is on Lakeview Terrace, where a four-bedroom, two-bathroom home that overlooks Lake Champlain is going for nearly $2,000, including fees, for a two-night stay in late October.

One of the home's owners, Sean Hurley, is a plaintiff in the case. Others include Five Seasons Real Estate, which has short-term rentals on North Winooski Avenue and Decatur Street; and Sam Gardner, who operates Airbnbs in at least seven buildings across the city.

One of the hosts' attorneys, A.J. LaRosa of Burlington firm MSK Attorneys, also serves on the city's Development Review Board. He didn't respond to an interview request. The other, Liam Murphy, is on vacation.

Acting City Attorney Kim Sturtevant said in an email on Thursday that the city will file an official response "opposing the complaint" in court next week. Code enforcement director Bill Ward, whose office is charged with enforcing the ordinance, said the city hasn't ticketed any short-term rental hosts for violations.

Samantha Sheehan, Mayor Miro Weinberger's communications director, said the mayor believes that enforcing the ordinance is a priority and that the city won't hesitate to adopt stronger penalties in the future.