How Massachusetts Law Regulates Short-Term Rentals

Massachusetts has established a comprehensive framework for regulating short-term rentals, which has become increasingly important as the popularity of platforms like Airbnb and VRBO continues to rise. The state law aims to create a balance between property owners, local communities, and regulators, ensuring safety, equity, and economic benefits.

In 2018, Massachusetts enacted legislation that governs short-term rentals statewide. Under this law, any rental of a residential property for less than 31 consecutive days qualifies as a short-term rental and is subject to specific regulations. Landlords must register their properties with the Massachusetts Department of Revenue (DOR) and obtain a local certificate of registration, which ensures compliance with municipal regulations.

One of the most significant components of the Massachusetts short-term rental law is the requirement for hosts to pay a state tax. This includes a 5.7% state excise tax on the rental amount, along with any applicable local taxes, which vary by city or town. Municipalities are empowered to impose their own short-term rental taxes, making it crucial for hosts to stay informed about local regulations.

Another key aspect of the Massachusetts short-term rental law is the focus on safety and accountability. Hosts must adhere to specific safety standards, including smoke and carbon monoxide detectors and maintaining occupancy limits that are in line with local zoning laws. This regulatory framework is designed to protect both guests and neighbors, ensuring that short-term rentals do not result in disruptive or unsafe conditions.

Local municipalities have the authority to establish their own rules regarding short-term rentals, which may include restrictions on the number of rentals allowed, minimum rental periods, and specific zoning requirements. Consequently, it’s important for property owners to understand local ordinances that may affect their ability to operate a short-term rental. Some towns have chosen to implement stricter policies than those at the state level, including outright bans or limiting the types of properties eligible for short-term rentals.

Moreover, while the statewide laws provide a foundation, many cities and towns, such as Boston, Cambridge, and Somerville, have crafted additional regulations tailored to their unique environments. These regulations may dictate everything from the required number of days a property must be occupied by the owner to ensure compliance with local housing policies.

In conclusion, Massachusetts law provides a structured approach to short-term rentals that prioritizes accountability, safety, and revenue for local governments. Hosts interested in venturing into the short-term rental market must not only comply with state regulations but also take the time to understand their local municipality's specific requirements. By doing so, property owners can enjoy the benefits of short-term rentals while contributing positively to their communities.