Cambridge Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Cambridge

If you're considering starting a short-term rental business in Cambridge, UK, it's important to understand the local regulations. While Cambridge does not currently have a specific 90-day restriction on short-term rentals as London does, hosts must still adhere to other applicable rules and guidelines.

When it comes to planning permission, landlords in Cambridge generally do not need to obtain special permission or legal status to use their properties as short-term rentals. However, it's still recommended to check with local authorities to ensure compliance with any specific zoning restrictions that may apply in your area.

Hosts offering short-term rentals in Cambridge are required to pay Council Tax on the property, even if they are eligible for a reduction or exemption. The specific tax requirements should be verified with the local government. Additionally, if a property is let out for more than 140 days per year, the owner may be liable for business rates instead of Council Tax.

Proposed Changes to Short-Term Rental Rules

In February 2024, Cambridge councilors welcomed proposed new laws that would require people to let out their property as a short-term holiday home to seek permission from the local authority. This indicates that regulations around short-term rentals in Cambridge may become more stringent in the near future.

Advice from Local Hosts

On the Cambridge subreddit, one host shared their experience with a neighbor starting an Airbnb. They noted that short-term holiday rentals, as opposed to long-term residential tenancies, generally do not involve lengthy court battles to evict problem tenants. This can make short-term rentals an attractive option for property owners.

Another Redditor looking to rent a flat in Cambridge struggled with the competitive rental market and considered taking a short-term furnished place while continuing their housing search. This highlights the demand for both long-term and short-term rentals in the Cambridge area.

Short-Term Rental Licensing Requirement in Cambridge

To legally operate a short-term rental in Cambridge, hosts must register their property with the city's Inspectional Services Department. The registration process involves a home inspection to ensure the rental unit complies with building, sanitary, and safety codes.

As part of the registration, hosts need to provide several supporting documents, including:

• Proof of liability insurance
• Written approval from the condominium association or building owner, if applicable
• Floor plan indicating the bedrooms to be used for short-term rental

Proof of the operator's primary residence through enrollment in the residential tax exemption program or a signed affidavit with photo ID and government/utility correspondence

The registration fee is $500, which can either be paid upfront or through a 5-year payment plan of $100 per year. Failure to pay the annual fee will result in the revocation of the registration.

Once the short-term rental passes inspection, the host will receive a Certificate of Registration valid for 5 years. This certificate must be posted in the rental unit. The registration will terminate if the unit ownership or operator changes.

It's important to note that the Short-Term Rental Ordinance does not override any lease agreements, condominium bylaws, or other regulations that tenants may be subject to. Tenants must carefully review their lease and obtain written permission from the property owner before applying for a short-term rental license.

While there is no specific limit on the number of days a property can be used as a short-term rental in Cambridge, the city council recommends that hosts submit a pre-application with details on the frequency and nature of the short-term rental use. This allows the council to assess if there will be a material change of use requiring planning permission.

Required Documents for Cambridge Short-Term Rentals

To legally operate a short-term rental in Cambridge, hosts must submit several supporting documents as part of the registration process. These documents help ensure the rental unit complies with building, sanitary, and safety codes.

Required documents for registering a short-term rental in Cambridge include:

1. Proof of liability insurance in an amount approved by the Commissioner of Inspectional Services, or proof that equal or higher liability coverage is provided by the hosting platform(s) used.
2. Written approval from the condominium association and/or building owner, if applicable.
3. Floor plan of the dwelling unit indicating which bedrooms will be used for short-term rental. The plan can be hand-sketched but should be neat, legible, and properly labeled.
4. Proof of the operator's primary residence through either:
   a) Documented enrollment in the Cambridge residential tax exemption program, or
   b) A signed affidavit along with photo ID and current government or utility correspondence showing the operator's name and address.
5. Other documents are listed in the short-term rental application.

The City of Cambridge provides useful documents and resources on its website to assist hosts in the registration process. These include affidavits to be filled out by property owners authorizing short-term rental units on their property.

It's important for hosts to carefully review and provide all the necessary documentation to avoid delays in the registration process. Incomplete applications or missing documents can result in the short-term rental not being approved until requirements are fully met. By diligently preparing the required documents upfront, hosts can help ensure a smooth registration experience.

Cambridge Short-Term Rental Taxes

When operating a short-term rental in Cambridge, it's crucial to understand the tax obligations that come with it. Hosts are generally required to pay Council Tax on their rental property, even if they are eligible for a reduction or exemption under certain circumstances.

If you're renting out accommodation in your primary residence, you may be able to take advantage of the tax-free allowance. As of 2023, hosts can earn up to £7,500 annually tax-free from letting out rooms in their main home. This allowance specifically applies to your primary residence; if you're renting out a second home or property, regular rental income tax rules apply.

It's important to note that tax regulations are subject to change, so hosts should stay updated with the latest guidelines from the government and tax authorities. Checking the relevant websites or consulting with a tax professional can help ensure compliance and accurate reporting of short-term rental income in Cambridge.

In addition to Council Tax, hosts may be liable for business rates if they leave their property for more than 140 days per year. Business rates are a form of property tax that applies to commercial properties, including certain types of short-term rentals that meet the qualifying criteria. If your property meets the threshold for business rates, it will be assessed and taxed accordingly.

The specific regulations and thresholds for business rates may vary, so it's recommended to check with the Cambridge Council or consult a tax professional to determine if your short-term rental property qualifies for business rates.

By understanding and complying with the tax requirements for short-term rentals in Cambridge, hosts can ensure they are operating legally and avoid potential penalties or legal issues. Staying informed about the latest tax regulations and seeking professional advice when needed can help hosts navigate the tax landscape and maximize their rental income.

England Wide Short-Term Rental Rules

In February 2024, the UK government announced new regulations for short-term rentals across England. These changes aim to protect local communities from excessive short-term lets while still allowing homeowners to benefit from the growing tourism economy.

Under the new rules, property owners will need to obtain planning permission from their local council before converting their property into a short-term rental. This requirement applies specifically to properties that are not the owner's primary residence. Existing short-term rentals will be automatically reclassified into a new use class and will not require immediate planning permission.

Additionally, a mandatory national short-term lets registration scheme will be introduced. This register will provide local authorities with essential data about short-term rentals in their area, helping them assess the impact on communities and ensure compliance with health and safety regulations. The government is working to ensure that the registration process does not impose excessive regulations, particularly on individuals who only occasionally rent out their homes.

Homeowners will still be allowed to let out their primary residence for up to 90 nights per year without requiring planning permission, recognizing the importance of short-term rentals in the UK's tourism economy. Hotels, hostels, and bed and breakfast establishments will remain unaffected by these changes.

The new regulations have been generally well-received by industry stakeholders. Airbnb, a major player in the short-term rental market, has expressed support for the introduction of a short-term lets register, stating that it will provide clear rules for hosts and give local authorities access to necessary information.

The UK Short Term Accommodation Association (STAA) has also welcomed the proposed registration scheme, acknowledging the government's willingness to work with the industry during the consultation process. The STAA recognizes the important economic role the short-term rental sector plays and appreciates the government's efforts to strike a balance in the regulations.

These England-wide short-term rental rules are expected to be introduced starting in the summer of 2024. The government will provide further details on the implementation timeline and specific requirements for the registration scheme and planning permissions in their official response to the policy consultations.

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

Based on discussions on forums like Reddit and Bigger Pockets, it appears that Cambridge does not strictly enforce short-term rental rules compared to some other cities. While regulations exist, many hosts seem to operate Airbnb listings in Cambridge despite the rules.

On the Cambridge subreddit, one user shared their experience with a neighbor starting an Airbnb rental. They expressed concerns about potential noise and nuisance but acknowledged that the neighbor legally owns the property. Other Redditors pointed out that as long as no laws are being broken, the homeowner can rent out their property as they please.

Another Reddit thread discussed someone moving to Cambridge with pets and looking for pet-friendly accommodations. Multiple responses indicated that while most listings prohibit pets, many landlords are open to allowing pets if asked directly. This suggests a degree of flexibility when it comes to rental policies in Cambridge.

On the Bigger Pockets real estate forum, investors have discussed operating short-term rentals in Cambridge without major issues from authorities. One investor mentioned running multiple Airbnb properties in the city without facing strict enforcement actions.

Overall, the sentiment from local forums and real estate communities is that while Cambridge has regulations around short-term rentals, the city does not appear to be extremely strict in enforcing these rules compared to places like London. Many hosts seem to be able to operate Airbnb and similar rentals without facing significant crackdowns or penalties as long as they maintain good relationships with neighbors and avoid major disruptions.

So, in summary, based primarily on anecdotal evidence from online discussions, Cambridge can be considered relatively Airbnb-friendly. While regulations exist, they do not appear to be as stringently enforced as in some other major cities, allowing a vibrant short-term rental market to thrive in Cambridge.

How to Start a Short-Term Rental Business in Cambridge

To start a short-term rental business in Cambridge, follow these steps:

1. Check Zoning and Planning Regulations: Verify that short-term rentals are permitted in the area where your property is located. While Cambridge generally allows short-term rentals, it's essential to check for any specific zoning or planning restrictions that may apply to your property.
2. Obtain Necessary Permissions: If you are a tenant, obtain written approval from the property owner and condominium association (if applicable) to operate a short-term rental. Landlords should also check their lease agreements for any restrictions on subletting.
3. Register Your Short-Term Rental: Register your property with the Cambridge Inspectional Services Department by submitting the required application and supporting documents, including proof of liability insurance, floor plans, and proof of primary residence.
4. Pass the Inspection: Schedule an inspection with the housing inspector once your application is approved. Ensure your rental unit complies with building, sanitary, and safety codes.
5. Pay the Registration Fee: The registration fee is $500, which can be paid upfront or through a 5-year payment plan of $100 per year. Failure to pay the annual fee may result in the revocation of your registration.
6. Obtain a Certificate of Registration: Upon successful inspection, you will receive a Certificate of Registration valid for 5 years. This certificate must be posted in the rental unit.
7. Understand Tax Obligations: Be aware of the tax obligations for short-term rentals, including Council Tax and potential business rates if you let your property for more than 140 days per year. Consult with a tax professional for guidance.
8. Comply with Ongoing Requirements: Provide emergency exit diagrams, local contact information such as a property manager or co-host, and instructions for waste disposal to guests. Keep accurate records of your business and make them available upon request.
9. Renew Registration and Inspections: Renew your registration and undergo inspections every 5 years or upon change of ownership.
10. Stay Updated: Monitor any changes to short-term rental regulations in Cambridge and ensure ongoing compliance with local laws and ordinances.

By following these steps, you can establish a legal and compliant short-term rental business in Cambridge. Remember to maintain good relationships with neighbors, avoid disturbances, and prioritize the safety and comfort of your guests.

Who to Contact in Cambridge about Short-Term Rental Regulations and Zoning?

If you have questions or need assistance regarding short-term rental regulations and zoning in Cambridge, you can contact the following departments:

Inspectional Services Department
Phone: 617-349-6100
Address: 831 Massachusetts Ave., Cambridge, MA 02139

The Inspectional Services Department oversees the registration process for short-term rentals in Cambridge. You can contact them for inquiries about the application process, inspections, and compliance with the Short-Term Rental Ordinance.

Zoning and Development Division
Email: cddzoning@cambridgema.gov

For specific questions related to zoning regulations and how they apply to short-term rentals, you can reach out to the Zoning and Development Division within the Community Development Department (CDD). They can provide guidance on zoning districts, permitted uses, and any necessary approvals or permits.

Individual Staff Contacts:

1. Jeff Roberts, Zoning and Development Director: jroberts@cambridgema.gov, 617-349-4639
2. Daniel Messplay, Senior Zoning Manager: dmessplay@cambridgema.gov, 617-349-4652

If you need to speak with a specific staff member about zoning or development-related matters, you can directly contact the individuals listed above.

It's recommended to first check the City of Cambridge's website (www.cambridgema.gov) for comprehensive information on short-term rental regulations, zoning maps, and online resources. If you cannot find the information you need on the website, contacting the appropriate department or staff member can provide further assistance and clarification.

What Do Airbnb Hosts in Cambridge on Reddit and Bigger Pockets Think about Local Regulations?

From discussions on Reddit and the Bigger Pockets real estate forum, it appears that many Airbnb hosts in Cambridge operate despite the regulations, and the rules are not strictly enforced compared to some other cities.

On the Cambridge subreddit, one user shared their experience with a neighbor starting an Airbnb rental. While they expressed initial concerns about noise and potential issues, other Redditors pointed out that as long as no laws are being broken, the homeowner can rent out their property as they please.

Another Reddit thread discussed someone moving to Cambridge with pets and looking for pet-friendly accommodations. Multiple responses indicated that while most listings prohibit pets, many landlords are open to allowing pets if asked directly, suggesting flexibility in rental policies.

On Bigger Pockets, investors have discussed operating short-term rentals in Cambridge without major issues from authorities. One investor mentioned running multiple Airbnb properties in the city without facing strict enforcement actions.

Overall, the sentiment from these online communities is that while Cambridge has regulations around short-term rentals, the city does not appear to be extremely strict in enforcing these rules compared to places like London. Many hosts seem to be able to operate Airbnb and similar rentals without facing significant crackdowns or penalties, as long as they maintain good relationships with neighbors and avoid major disruptions.

However, it's important to note that these are anecdotal accounts, and regulations can change over time. Hosts should still exercise caution and ensure compliance with the latest rules and guidelines set forth by the city authorities.

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.