Thinking about turning your Hollis home into a short-term rental? The rules in New Hampshire are clear, but there are details that can trip you up. Whether you are testing the market or buying a property with guest potential, knowing the state tax rules and local zoning will save time and reduce risk. In this guide, you will learn the key requirements, where to check for Hollis-specific rules, and how to set up your property safely and legally. Let’s dive in.
What counts as a short-term rental
A short-term rental in New Hampshire is a rental of one or more rooms in a residential unit for tourist or transient use for less than 185 consecutive days. This state definition drives your tax and licensing obligations. You must register as an operator for the state Meals and Rentals tax and include your operator license number in any public advertisement. You can review the definition and tax framework in the state statute and rules that govern this program (state statute and program overview, definition reference).
NH Meals and Rentals tax: what you must do
If you host short stays, you are responsible for the state’s rooms and meals tax program.
- Register for an operator license before your first booking, then list your license number in every advertisement and listing. The Department of Revenue Administration (DRA) rules cover licensing, filing, and recordkeeping (DRA Rev 700 rules).
- Collect and remit the tax on taxable rents and file returns. Monthly filing is the default. Quarterly filing may be allowed with DRA approval. Keep accurate records and follow electronic filing and payment rules.
- Display and use your license number wherever you market the rental. Missing license numbers in ads can lead to warnings or license actions.
Who collects the tax
Some platforms act as “rental facilitators” and may collect and remit the tax for bookings made through them. Practices vary, so confirm in writing whether a specific platform is collecting New Hampshire tax on your behalf for your listing. You remain responsible for compliance unless the platform clearly collects and remits for a booking (facilitator and filing rules).
Penalties and enforcement
The DRA can issue warnings and may suspend, deny, or revoke a Meals and Rentals operator license for noncompliance, including failing to include your license number in ads or missing filings and payments. In some cases, the DRA may require bonds or electronic fund transfer for remittance (enforcement provisions).
Hollis zoning and local permits
New Hampshire gives towns the power to regulate land use. That means Hollis can set conditions or limits for short-term rentals through its zoning ordinance and related rules. Do not assume residential zoning automatically allows investor-operated short-term rentals.
Start by reviewing Hollis’s Ordinances and Regulations, then contact Building and Code Enforcement and the Planning Board to confirm what applies to your property, including any approvals, parking or occupancy limits, and whether your use is permitted as-of-right or needs a special exception or site plan review. You can find current materials and contacts here: Hollis Ordinances and Regulations, Building and Code Enforcement, and the Planning Board. At the time of this writing, a dedicated town-wide STR licensing page was not located on the site. Local rules can change, so check the town website and call the departments above for the latest guidance.
Safety, septic, and on-site requirements
Short-term rentals must be safe and appropriately sized for the guest load.
- Fire and life safety: Install and maintain smoke and carbon monoxide alarms and follow State Fire Marshal guidance for locations and interconnection. Ask Hollis Building/Code Enforcement if an inspection or certificate is required before renting. See life-safety guidance here (State Fire Marshal information).
- Septic capacity: Confirm your system’s design flow matches your intended occupancy. New Hampshire’s ISDS rules govern capacity, evaluations, and upgrades. If your guest count could exceed design flow, you may need an evaluation or permit before renting (NHDES ISDS rules).
- Parking, trash, and neighborhood impacts: Review Hollis rules on off-street parking, driveway, trash storage, and noise. These are often covered in local ordinances and site-plan standards (Hollis Ordinances and Regulations).
Step-by-step checklist for Hollis hosts
- Step 1: Confirm zoning. Check the Hollis Zoning Ordinance and Use Table, then contact Planning and Building/Code to verify the use and whether any approvals are needed (Ordinances and Regulations).
- Step 2: Register with the state. Apply for a Meals and Rentals operator license, obtain your license number, and include it in every ad. File returns monthly unless DRA approves quarterly filing. Keep platform tax reports for your records (DRA Rev 700 rules).
- Step 3: Verify septic. Confirm the ISDS design flow and, if needed, arrange an evaluation or upgrade before hosting (NHDES ISDS rules).
- Step 4: Meet safety codes. Install and test smoke and CO alarms and ask the town about any required inspections or permits (life-safety guidance).
- Step 5: Set operating standards. Add STR-specific liability insurance, create house rules for occupancy, parking, trash, and quiet hours, and name a local contact if you will not be nearby. Maintain organized records for tax and any audit.
- Step 6: Monitor town meetings. Follow Planning Board, Select Board, and Zoning Board agendas and minutes in case Hollis adopts new STR rules (Planning Board page).
Taxes beyond the rooms and meals tax
Short-term rental income is generally taxable at the federal level. Your specific filing (for example, Schedule E or business treatment) depends on how you operate and what services you provide, so consider consulting a tax professional. Operating an STR does not automatically change your local property tax classification in New Hampshire, but practices can vary. If you have questions, check with the Hollis Assessing or Tax office.
Risks and community considerations
Towns in New Hampshire actively regulate STRs and the legal landscape evolves. Municipalities can require registration, limit nights, or set safety and parking standards, and enforcement can include fines or permit actions. For a recent overview of municipal authority and court developments, see this summary from the New Hampshire Municipal Association (municipal context and case updates).
If you plan ahead, you can host confidently. Start with zoning, register for the state tax license, and make sure your home meets safety and septic standards. That preparation protects your investment and creates a better guest experience.
Ready to evaluate a Hollis property for short-term rental potential or prepare a home for market with STR-friendly features? Reach out to Rebecca Curran for local guidance that blends technical clarity with boutique, high-touch service.
FAQs
What is considered a short-term rental in New Hampshire?
- A rental of one or more rooms in a residential unit for tourist or transient use for fewer than 185 consecutive days, as defined in state law (definition reference).
Do Hollis hosts need a Meals and Rentals license?
- Yes. You must register as an operator, collect and remit tax, and include your state license number in every advertisement (DRA Rev 700 rules).
How often do I file the New Hampshire STR tax?
- Monthly by default. Quarterly filing may be allowed with DRA approval if you meet the criteria (filing rules).
Does my booking platform collect New Hampshire tax for me?
- Sometimes. Platforms may act as rental facilitators, but you must confirm collection for your listing. You remain responsible for compliance unless the platform clearly collects and remits for the booking (facilitator rules).
Are there Hollis-specific permits for short-term rentals?
- Check the Hollis Ordinances and Regulations and contact Building/Code and the Planning Board. A dedicated STR licensing page was not located at the time of this writing, and local rules can change (Hollis Ordinances and Regulations).
What safety and septic checks should I plan for before hosting?
- Install and maintain smoke and CO alarms per state guidance and confirm your septic system’s design flow matches planned occupancy. Inspections or upgrades may be required (life-safety guidance, NHDES ISDS rules).
Will operating an STR change my property taxes in Hollis?
- Not automatically. Classification is not changed solely by STR use in New Hampshire, but you should confirm local practice with Hollis’s assessing or tax office.
