🎯 STRisker: Bulletin - Burlington, VT

A Deep Dive into Your Area’s STR Updates — Helping You Navigate the Ever-Changing Rental Landscape.

Vermont Court Reroutes STR Legal Challenge in Burlington

The legal fight over Burlington’s strict short-term rental (STR) rules just hit a procedural speed bump—but the hosts at the center of the battle aren’t backing down.

On June 6, the Vermont Supreme Court ruled that a group of 12 property owners challenging Burlington’s 2022 short-term rental ordinance filed their lawsuit in the wrong court. Now, they’ll have to argue their case in environmental court, which handles zoning and permitting issues.

Burlington Code of Ordinances

Burlington Code of Ordinances

The plaintiffs led by Airbnb host Sam Gardner under the business name 32 Intervale LLC, had originally taken their grievances to civil court arguing that the city had no legal right to impose the new STR restrictions. They also claimed that because their rentals existed before the 2022 ordinance, they should be “grandfathered” in—exempt from the city’s crackdown.

Under current rules, short-term rentals in Burlington must be 1️⃣owner-occupied or located on the same lot as the host’s residence. 2️⃣Rentals can’t be leased for fewer than 14 or more than 30 days in a 12-month stretch, and 3️⃣violators may face $100 fines. These tight restrictions hit especially hard in areas like the Old North End where many of the plaintiffs own properties and where housing is already scarce.

While the city got part of the original lawsuit thrown out, the plaintiffs were hoping to keep the exemption argument alive. But the courts made it clear: zoning matters don’t belong in civil court. The Supreme Court upheld the dismissal, meaning if the STR hosts want to keep fighting, it’s environmental court or bust.

Liam Murphy, the attorney representing the plaintiffs says they’ll pursue that route. But it’s not clear whether that court even has the power to weigh in on this type of exemption case. Even so, he says his clients are ready to keep pushing.

“It could take some time to sort out this matter,” Murphy said.

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Meanwhile, Burlington’s director of permitting and inspections, Bill Ward, said the city is “grateful” for the court’s decision and confirmed that some aspects of the STR rules are not being enforced while the legal process plays out. That could offer temporary relief to some hosts.

If the environmental court rules against them, the plaintiffs may appeal again or request individual exemptions, though Murphy says that’s unlikely to succeed.

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