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Property owner told ADU on lot bars short‑term rentals; city staff recommends long‑term or variance route

2796234 · March 18, 2025
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Summary

A property buyer who intended occasional short-term rentals was advised that an accessory dwelling unit (ADU) on the lot makes short‑term lodging prohibited under current Laconia rules; staff outlined options including applying for variances or switching to long‑term/seasonal rentals.

A property owner who purchased a home on East Minshore Road and intended to operate short‑term rentals was told by Laconia planning staff that the lot contains an accessory dwelling unit (ADU), and current ordinance language prohibits short‑term lodging when an ADU exists on the same parcel.

The owner, who identified himself as a doctor and said the property was purchased as a 1031 exchange and came with a long‑term tenant in an in‑law apartment, asked whether he could use the main house for short‑term rentals while the tenant remained in the ADU. Planning staff replied: "If there's an ADU on the lot, short term lodging is prohibited," and advised the owner of two options: seek variances (including a density/use change to legalize a two‑family use) or pursue long‑term or seasonal rentals that comply with the ordinance.

Staff emphasized that the ADU rules were written to allow living space for family members rather than to create units for short‑term commercial use; short‑term hosting can also raise enforcement issues when an on‑site manager is not present. The owner was advised to meet with staff to review options, including applying for a variance to change the lot's permitted use or converting the rental plan to long‑term leasing to avoid violating ADU restrictions.

No formal board action was taken; the staff recommendation and ordinance interpretation were provided as guidance at the meeting.