Boston Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Boston, Massachusetts?

Boston, a city known for its rich history and vibrant culture, has also become a popular destination for short-term rentals like Airbnb and VRBO. However, the city has implemented a comprehensive set of regulations to manage the impact of these rentals on the local housing market, neighborhoods, and communities.

Starting a Short Term Rental Business in Boston

To operate a short-term rental in Boston, hosts must first ensure their property meets the city's eligibility criteria. Boston categorizes short-term rentals into three distinct types: limited share, home share, and owner-adjacent. Each type has its own set of requirements and fees that hosts must comply with.

One of the key requirements is that the host must be a permanent resident living at the property they intend to rent out. This rule is designed to prevent the conversion of residential units into de facto hotels, which can have a detrimental effect on the city's housing supply and affordability.

Short Term Rental Licensing Requirement in Boston

Obtaining a license from the city is a crucial step for anyone looking to operate a short-term rental in Boston. This license must be prominently displayed on all rental listings, and hosts must also register their properties with the city clerk's office.

The licensing process involves submitting various documents and paying the required fees. Hosts must also comply with the specific regulations associated with their rental type, such as occupancy limits and advertising requirements.

Required Documents for Boston Short Term Rentals

In addition to the business certificate obtained from the city clerk's office, hosts must also provide other documentation to demonstrate compliance with Boston's short-term rental regulations.

This may include proof of residency, property ownership, and insurance coverage.

Short-Term Rental Registration Number:

• Hosts must register their property with the City of Boston and obtain a short-term rental registration number.
• This registration number must be displayed on all listings for the short-term rental property.

Business Certificate:

• In addition to the short-term rental registration, hosts must obtain a business certificate from the City of Boston's City Clerk's Office.
• To apply for the business certificate, hosts need to provide a copy of their short-term rental registration number.

Proof of Primary Residence:

• Boston requires short-term rental hosts to be permanent residents living at the property they are renting out.
• Hosts must provide at least two forms of proof of primary residence, such as a proof of residential exemption, utility bill, voter registration, motor vehicle registration, deed, or driver's license.

Abutter Notification:

• Within 30 days of receiving their short-term rental license, hosts must notify any residential dwellings within 300 feet of the rental unit.

Fire Safety Signage:

• Hosts must post a sign inside the rental unit informing guests of the locations of fire extinguishers, fire exits, and pull fire alarms.

Boston Short Term Rental Taxes

Boston short-term rental hosts are responsible for collecting state room-occupancy taxes from their guests and filing monthly lodging tax returns. The city also imposes a local lodging tax of 6.5%, which hosts must collect and remit to the appropriate authorities.

Boston-wide Short Term Rental Rules

Boston's regulations on short-term rentals extend beyond licensing and taxation. The city prohibits certain types of properties from being used as short-term rentals, such as income-restricted units and apartments with multiple recent code violations.

There are also restrictions on the number of bedrooms and guests allowed in a short-term rental property based on its classification.

Does Boston Strictly Enforce STR Rules? Is Boston Airbnb Friendly?

Boston is widely regarded as one of the least Airbnb-friendly major cities in the United States due to its strict enforcement of short-term rental regulations. The city actively monitors and suspends the licenses of hosts found to be in violation of the rules.

Many Airbnb hosts in Boston have expressed frustration with the city's regulations, citing the challenges of complying with the rules and the impact on their businesses. Some hosts have even reported operating in Boston despite the regulations, though this carries significant risks.

How to Start a Short Term Rental Business in Boston

• Determine if your property meets Boston's eligibility criteria for short-term rentals.
• Register your property with the City of Boston and obtain the necessary business certificate.
• Collect and remit state and local lodging taxes from your guests.
• Adhere to all regulations regarding occupancy limits, property types, and advertising requirements.

Who to Contact in Boston About Short Term Rental Regulations and Zoning?

For questions or concerns regarding short-term rental regulations and zoning in Boston, hosts can contact the Inspectional Services Department at 617-635-1010 or visit the city's official website for more information.

What do Airbnb Hosts in Boston on Reddit and Bigger Pockets Think About Local Regulations?

Boston, a city steeped in history and culture, has also become a battleground for Airbnb hosts grappling with stringent local regulations. Delving into discussions on platforms like Reddit and Bigger Pockets reveals a tapestry of opinions and experiences among hosts trying to navigate the complex web of rules governing short-term rentals in the city.

In the Reddit discussions, a common theme emerges as hosts express frustration with the evolving landscape of short-term rentals in Boston. Some hosts criticize the hype surrounding platforms like Airbnb, highlighting a saturation of the market that has led to decreased revenue per host. This saturation has prompted some hosts to contemplate transitioning to long-term rentals to offset expenses, reflecting the challenges posed by the competitive market and regulatory environment.

Articles and blogs shed light on the intricacies of Boston's short-term rental laws, emphasizing the city's efforts to regulate and restrict platforms like Airbnb. These regulations, implemented to address concerns about housing shortages and competition with the hotel industry, require hosts to register with the city, adhere to strict rules, and face fines for non-compliance. The patchwork of local ordinances across Massachusetts further complicates the regulatory landscape, with different regions responding differently to the influence of short-term rentals.

In the Bigger Pockets forum, a prospective Airbnb host in Boston seeks clarity on the city's regulations before investing in short-term rentals. The user's cautious approach underscores the importance of understanding eligibility for lodging house licenses, the ease of obtaining them, and the potential for denials despite correct paperwork. This cautious stance reflects the diligence required to ensure full compliance with Boston's regulations to avoid legal pitfalls.

A Reddit thread discussing a couple managing 22 Airbnb properties generating substantial revenue offers a glimpse into the profitability and challenges of operating multiple short-term rentals in Boston. Speculations about the economic viability of these properties amidst regulatory constraints and market dynamics highlight the balancing act that hosts must navigate to sustain their businesses in a challenging regulatory environment.

In conclusion, the narratives of Boston Airbnb hosts on Reddit and Bigger Pockets paint a nuanced picture of the opportunities and obstacles inherent in the city's short-term rental landscape. From concerns about profitability and compliance to the impact of regulations on business strategies, these perspectives underscore the complexities hosts face as they strive to thrive in Boston's evolving short-term rental market.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.