Madison sues Merrimack man for operating a short-term rental

Lawsuit states defendant advertised one-story home in Madison for rent for 30 days or less in violation of state ordinance

The town of Madison is taking a short-term rental owner to court to get him to stop renting. The case, to be heard in Carroll County Superior Court, is titled “Town of Madison v. Nicholas Gage.”

The lawsuit, filed March 26, states that Gage lives in Merrimack. It concerns Gage’s one-story house at 10 Barden Place in the Eidelweiss Residential District of Madison.

In 2022, residents at annual town meeting voted to amend the definition of dwelling unit to include that dwelling units are used for non-transient residential purposes” and “non-transient occupancy” means greater than 30 days.

“In 2023, it came to the town’s attention that the defendant was advertising the property for rent for periods of 30 days or less as a short-term rental in violation of the ordinance,” states town attorney Cordell Johnston, who is based in Henniker.

In June, the town sent Gage letters that he is in violation of the town ordinance and asked for his compliance.

Gage appealed to the zoning board of adjustment and was denied in November. He applied for rehearing in December and was denied that in January.

At that point, said Johnston, Gage’s recourse would have been to appeal to the Superior Court or the Housing Appeals Board.

“Therefore, the town’s determination that the property cannot be used as a short-term rental is final and not subject to further appeal,” said Johnston. “Nevertheless, the defendant has continued to advertise and use the property as a short-term rental subsequent to the ZBA’s decision.”

Johnston said the court should impose civil penalties of $275 per day starting from Jan. 12 to whenever he complies with the ordinance. If one counts 74 days from Jan 12 to March 26 that’s just over $20,000.

Johnston is also asking that the court bar Gage from renting his property short-term and that Gage reimburse the town for all out-of-pocket costs investigating and prosecuting the case.

The town has until May 18 to serve Gage.

Gage must file an answer 30 days after he is served. By June 8, the town must file with the court a confirmation that Gage has been served.

Reached by phone Tuesday, he said he had not seen the lawsuit.

Mt. Washington Association for Responsible Rentals President David Cavanaugh told the Sun Gage doesn’t appear to be a member of the association.

The town provided the court with a copy of the Airbnb listing for Gage’s property dated March 21, 2024. It says he rents it for $500 per night. Gage has a five star rating based on three reviews. The listing says:

“Come enjoy what the White Mountains have to offer. Our home is newly built and was set up to easily accommodate four adults and four kids. Enjoy the beach, rivers, hiking and lakes.”

Selectmen voted 2-0-1 to initiate the lawsuit in a non-public meeting March 19.

Selectmen Adam Price and John Arruda voted in favor, and newly elected member Joy Gray abstained because she did not feel “up to speed” on the case, according to meeting minutes.

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