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

Starting a Short-Term Rental Business in Lawrence

Short-term rentals like Airbnb and VRBO have become increasingly popular in recent years. However, many cities and towns have enacted regulations on these rentals. In Lawrence, Massachusetts, short-term rentals are currently prohibited as no regulations allow them.

Under Massachusetts state law that went into effect in July 2019, short-term rental operators are required to register with the state, report total revenue, and collect and remit taxes. Municipalities can enact additional restrictions through zoning.

Lawrence's zoning code does not specifically address short-term rentals. This means they are not an allowed use in residential districts. In 2017, a local newspaper editorial argued that Lawrence should allow and regulate short-term rentals, as prohibiting them entirely may be overly restrictive.

However, the city has not taken any action since then to legalize short-term rentals. HERE Apartments in Lawrence briefly listed some units on Airbnb in November 2022, but the listings were quickly taken down as the rentals were not permitted under current zoning.

Other Massachusetts cities and towns have taken varied approaches to regulating short-term rentals:

• Boston enacted an ordinance in 2019 that limits short-term rentals to owner-occupied properties requires annual registration, and imposes other restrictions.
• In 2019, the state legislature passed a law requiring all short-term rental operators to register with the state, maintain $1 million in liability insurance, and comply with other health and safety standards.
• Many towns have used their zoning codes to restrict short-term rentals to certain districts, limit the number of rentals an owner can operate, require local permits and inspections, and impose minimum stays of 30 days or more.

Lawrence has opted to prohibit short-term rentals entirely rather than allow them with regulations. Anyone considering starting an Airbnb or VRBO in Lawrence should be aware it is not currently permitted. Check with the city's Planning Department for any updates to the zoning code regarding short-term rentals.

Short-Term Rental Licensing Requirement in Lawrence

Short-term rentals like Airbnb and VRBO are prohibited in Lawrence, Massachusetts, as the city's zoning code does not specifically allow them in residential districts. This means property owners are not able to obtain licenses to operate short-term rentals.

In 2019, Massachusetts enacted a statewide law requiring all short-term rental operators to register with the state, collect and remit taxes, and maintain liability insurance. However, the law allows cities and towns to impose additional restrictions through their zoning codes.

Lawrence has opted not to amend its zoning to permit and regulate short-term rentals. A 2017 local newspaper editorial argued the city should allow and regulate them rather than maintain an outright ban, but no changes have been made since then.

The city does require all residential rental properties to be registered and licensed annually through its Inspectional Services Department. Owners must pay an annual fee of $25 per unit and have the property inspected to ensure it meets health and safety standards. However, this rental licensing requirement applies to long-term rentals, not short-term rentals, which remain prohibited.

For now, anyone considering purchasing property in Lawrence to use as a short-term rental should be aware it is illegal under the current zoning code. The city has prioritized preserving housing for long-term residents over allowing short-term rentals. Check with the city's Planning Department for any potential future changes to the regulations.

Required Documents for Lawrence Short-Term Rentals

As short-term rentals like Airbnb and VRBO are currently prohibited in Lawrence, Massachusetts, there is no process to obtain a short-term rental license or submit the required documents to the city. The zoning code does not allow this use in residential districts.

However, if Lawrence were to amend its zoning in the future to permit and regulate short-term rentals, it's likely the city would require certain documentation from property owners seeking a license. This could potentially include:

1. Proof of property ownership or permission from the owner to operate a short-term rental
2. Floorplan of the property indicating which areas will be used for short-term rentals
3. Proof of $1 million liability insurance coverage, as required by state law
4. Proof of registration with the state and agreement to collect and remit applicable taxes
5. Completed city application for a short-term rental license
6. Payment of city license fees

The specific documentation requirements would be determined by any future short-term rental ordinance passed by the Lawrence City Council. Some other Massachusetts cities that allow short-term rentals have included these types of requirements in their regulations.

Lawrence requires all residential rental properties to be registered and licensed annually by the Inspectional Services Department. Owners must have the property inspected and pay a $25 per unit fee. However, this only applies to long-term rentals, not short-term rentals, which are currently illegal.

For now, property owners in Lawrence are not able to obtain a license or submit documentation to legally launch a short-term rental. The use is prohibited citywide under the current zoning. Any changes would require legislative action by the City Council to amend the zoning code and establish a regulatory framework for short-term rentals.

Lawrence Short-Term Rental Taxes

As short-term rentals like Airbnb and VRBO are currently prohibited in Lawrence, Massachusetts, the city does not have a specific tax that applies to this type of rental income. Property owners are not able to legally operate short-term rentals under the zoning code.

However, Massachusetts does impose taxes on short-term rental income at the state level. In 2019, the legislature passed a law requiring all short-term rental operators to register with the state, collect applicable taxes from guests, and remit the taxes to the state Department of Revenue.

The state taxes that apply to short-term rentals in Massachusetts include:

1. 5.7% state room occupancy excise tax
2. A local option excise tax of up to 6% if adopted by the city or town
3. 2.75% convention center financing fee for rentals in Boston, Worcester, Cambridge, Springfield, West Springfield, and Chicopee
4. Cape Cod and Islands Water Protection Fund fee of 2.75% for rentals in those communities

If Lawrence were to amend its zoning to allow short-term rentals, the city could adopt the local option excise tax of up to 6%. This would be in addition to the state taxes that would automatically apply.

The state law requires short-term rental booking platforms like Airbnb and VRBO to collect and remit the taxes on behalf of hosts. However, hosts are still responsible for registering with the state and maintaining proper records.

As short-term rentals are currently illegal in Lawrence, property owners are not collecting or remitting these taxes to the state. The city does not have any specific taxes that apply to short-term rentals.

Any future regulations in Lawrence permitting short-term rentals would need to address taxation and how it aligns with the statewide requirements. For now, city zoning prohibits all short-term rental activity, regardless of taxes.

Short-Term Rental Licensing Requirement in Lawrence

Currently, short-term rentals like Airbnb and VRBO are prohibited in Lawrence, Massachusetts, as the city's zoning code does not specifically allow them in residential districts. This means property owners are not able to obtain licenses to operate short-term rentals.

In 2019, Massachusetts enacted a statewide law requiring all short-term rental operators to register with the state, collect and remit taxes, and maintain liability insurance. However, the law allows cities and towns to impose additional restrictions through their zoning codes.

Lawrence has opted not to amend its zoning to permit and regulate short-term rentals. A 2017 local newspaper editorial argued the city should allow and regulate them rather than maintain an outright ban, but no changes have been made since then.

The city does require all residential rental properties to be registered and licensed annually through its Inspectional Services Department. Owners must pay an annual fee of $25 per unit and have the property inspected to ensure it meets health and safety standards. However, this rental licensing requirement applies to long-term rentals, not short-term rentals, which remain prohibited.

Attempts to operate short-term rentals in Lawrence have been quickly shut down. In November 2022, HERE Apartments briefly listed some units on Airbnb but had to remove the listings as the use is not permitted.

For now, anyone considering purchasing property in Lawrence to use as a short-term rental should be aware it is illegal under the current zoning code. The city has prioritized preserving housing for long-term residents over allowing short-term rentals. Check with the city's Planning Department for any potential future changes to the regulations.

Required Documents for Lawrence Short-Term Rentals

As short-term rentals like Airbnb and VRBO are currently prohibited in Lawrence, Massachusetts, there is no process to obtain a short-term rental license or submit required documents to the city. The zoning code does not allow this use in residential districts.

However, if Lawrence were to amend its zoning in the future to permit and regulate short-term rentals, it's likely the city would require certain documentation from property owners seeking a license. This could potentially include:

1. Proof of property ownership or permission from the owner to operate a short-term rental
2. Floorplan of the property indicating which areas will be used for short-term rentals
3. Proof of $1 million liability insurance coverage, as required by state law
4. Proof of registration with the state and agreement to collect and remit applicable taxes
5. Completed city application for a short-term rental license
6. Payment of city license fees

The specific documentation requirements would be determined by any future short-term rental ordinance passed by the Lawrence City Council. Some other Massachusetts cities that allow short-term rentals have included these types of requirements in their regulations.

Lawrence requires all residential rental properties to be registered and licensed annually by the Inspectional Services Department. Owners must have the property inspected and pay a $25 per unit fee. However, this only applies to long-term rentals, not short-term rentals, which are currently illegal.

For now, property owners in Lawrence are not able to obtain a license or submit documentation to legally operate a short-term rental. The use is prohibited citywide under the current zoning. Any changes would require legislative action by the City Council to amend the zoning code and establish a regulatory framework for short-term rentals.

Lawrence Short-Term Rental Taxes

As short-term rentals like Airbnb and VRBO are currently prohibited in Lawrence, Massachusetts, the city does not have a specific tax that applies to this type of rental income. Property owners are not able to legally operate short-term rentals under the zoning code.

However, Massachusetts does impose taxes on short-term rental income at the state level. In 2019, the legislature passed a law requiring all short-term rental operators to register with the state, collect applicable taxes from guests, and remit the taxes to the state Department of Revenue.

The state taxes that apply to short-term rentals in Massachusetts include:

1. 5.7% state room occupancy excise tax
2. Local option excise tax of up to 6% if adopted by the city or town
3. 2.75% convention center financing fee for rentals in Boston, Worcester, Cambridge, Springfield, West Springfield, and Chicopee
4. Cape Cod and Islands Water Protection Fund fee of 2.75% for rentals in those communities

If Lawrence were to amend its zoning to allow short-term rentals, the city could adopt the local option excise tax of up to 6%. This would be in addition to the state taxes that would automatically apply.

The state law requires short-term rental platforms like Airbnb and VRBO to collect and remit the taxes on behalf of hosts. However, hosts are still responsible for registering with the state and maintaining proper records.

As short-term rentals are currently illegal in Lawrence, property owners are not collecting or remitting these taxes to the state. The city does not have any specific taxes that apply to short-term rentals.

Any future regulations in Lawrence permitting short-term rentals would need to address taxation and how it aligns with the statewide requirements. For now, city zoning prohibits all short-term rental activity, regardless of taxes.

Massachusetts Wide Short-Term Rental Rules

While cities and towns in Massachusetts can impose restrictions on short-term rentals, the state has some requirements that apply statewide. In 2019, the legislature passed a law regulating short-term rentals like Airbnb and VRBO.

Under the statewide law, all short-term rental operators must:

1. Register with the state Department of Revenue and obtain a certificate of registration
2. Collect and remit applicable state and local taxes from guests
3. Maintain $1 million in liability insurance coverage
4. Include registration number in any listings and advertisements
5. Comply with state building codes, fire codes, and health and safety regulations
6. Keep detailed records of rental activity and make them available for inspection

The law defines a short-term rental as any rental of a residential property for a period of 31 days or less. It applies to owners renting out entire homes, individual rooms, or portions of a property.

Municipalities are allowed to impose additional restrictions on short-term rentals through their zoning codes and ordinances. This can include:

1. Prohibiting short-term rentals entirely in certain districts or citywide
2. Limiting the number of days per year a property can be rented short-term
3. Requiring a local permit or license to operate a short-term rental
4. Restricting short-term rentals to owner-occupied properties only
5. Imposing minimum stays of 30 days or more in certain districts
6. Requiring inspections to ensure compliance with health and safety standards

Many cities and towns in Massachusetts have adopted these types of local regulations in addition to the state requirements. For example, Boston only allows short-term rentals in owner-occupied properties and requires an annual permit.

In Lawrence, short-term rentals are currently prohibited citywide as the zoning code does not allow them in any district. Property owners are not able to comply with state registration and tax collection requirements as local use is not permitted.

The statewide law sets a baseline for short-term rental regulation in Massachusetts, but ultimately local zoning determines where and how the rentals are allowed to operate. In Lawrence, a zoning amendment would be needed before the state requirements could apply.

Does Lawrence Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like Bigger Pockets and Reddit, Lawrence appears to be one of the stricter cities in Massachusetts when it comes to short-term rental regulations and enforcement. The city is not considered "Airbnb friendly" compared to other nearby communities.

As short-term rentals are prohibited citywide under the current zoning code, Lawrence has taken enforcement actions against property owners attempting to operate Airbnbs or VRBOs illegally.

On the Bigger Pockets forums, several investors have reported receiving cease and desist letters from the city after listing Lawrence properties on short-term rental sites. The city has actively monitored these platforms and taken swift action against violators.

This strict enforcement stance contrasts with some other Massachusetts cities that have taken a more lenient approach while waiting for updated regulations. For example, Worcester and Springfield have allowed short-term rentals to operate in a gray area with little enforcement prior to adopting official ordinances.

However, Lawrence officials have made clear the city will not tolerate short-term rentals operating illegally under the radar. The zoning prohibition is being actively enforced with fines and legal action against non-compliant property owners.

While some hosts may still attempt to operate short-term rentals in Lawrence despite the rules, the risk of enforcement is high compared to other areas. The city has dedicated resources to identifying and shutting down illegal rentals.

Investors on Reddit and Bigger Pockets have advised others to steer clear of short-term rentals in Lawrence for now, as the city is not a friendly environment for this type of operation. The consensus is that Lawrence is one of the harder-line communities in Massachusetts when it comes to cracking down on Airbnb and VRBO activity.

Lawrence will likely continue its strict enforcement approach until there is a formal zoning amendment to allow and regulate short-term rentals. Hosts operating illegally face a high risk of fines and legal consequences. The city has made its position clear that short-term rentals are not welcome under the current rules.

How to Start a Short-Term Rental Business in Lawrence

Unfortunately, it is not currently possible to legally operate a short-term rental business in Lawrence, Massachusetts. The city's zoning code prohibits rentals of less than 30 days in all residential districts, effectively banning Airbnb, VRBO, and similar platforms citywide.

Lawrence has taken a strict enforcement stance against property owners attempting to operate short-term rentals illegally. The city actively monitors rental listings and has issued cease and desist letters and fines to violators. Officials have made clear they will not tolerate short-term rentals operating under the radar.

As a result, there is no path to legally starting a short-term rental business in Lawrence at this time. The steps that would typically be involved, such as obtaining a permit or license and registering with the state, are not available as the use is prohibited.

If the city were to amend its zoning code in the future to allow short-term rentals, the process to start a business would likely involve:

1. Determining if your property is eligible and in a permitted district
2. Obtaining a local permit or license from the city
3. Registering with the state Department of Revenue and obtaining a certificate of registration
4. Securing $1 million in liability insurance coverage
5. Setting up a system to collect and remit state and local taxes
6. Ensuring the property meets all applicable health, safety, and building codes
7. Creating listings on platforms like Airbnb and VRBO
8. Establishing policies and procedures for guest check-in, cleaning, and maintenance
9. Complying with any additional city regulations, such as occupancy limits or parking requirements

However, none of these steps are currently relevant as Lawrence does not allow short-term rentals period. Investors and entrepreneurs interested in this business model will need to look elsewhere in Massachusetts or wait for a potential zoning change.

The city has prioritized preserving housing stock for long-term residents and has shown no indication of reversing its ban on short-term rentals. The strict enforcement actions against violators suggest this policy is unlikely to change anytime soon.

For now, starting a short-term rental business in Lawrence is simply not an option. The city's zoning code and enforcement stance make it one of Massachusetts's least hospitable environments for Airbnb and VRBO hosts. Investors should focus on other communities with clearer and more permissive regulations.

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

If you have questions about short-term rental regulations and zoning in Lawrence, Massachusetts, the best place to start is the city's Planning Department. This department is responsible for administering the zoning code and can provide guidance on what uses are allowed in each district.

Contact the Planning Department at:

City of Lawrence Planning Department
12 Methuen Street, 1st Floor
Lawrence, MA 01840
Phone: (978) 620-3240
Email: planning@cityoflawrence.com

The Planning Department can confirm that short-term rentals are currently prohibited in all zoning districts citywide. They can also provide information on any potential future amendments to the zoning code that could allow and regulate short-term rentals.

For questions about enforcement of the short-term rental ban, contact the city's Inspectional Services Department. This department is responsible for investigating complaints and issuing violations related to illegal rental activity.

Contact the Inspectional Services Department at:

City of Lawrence Inspectional Services Department
12 Methuen Street, 1st Floor
Lawrence, MA 01840
Phone: (978) 620-3130
Email: inspectionalservices@cityoflawrence.com

If you are a property owner who has received a cease and desist letter or fine for operating a short-term rental illegally, the Inspectional Services Department can provide more information about the enforcement process and any appeals options.

Finally, contact the city's Business and Economic Development Department for general questions about business registration and licensing in Lawrence. While this department does not directly handle short-term rentals, they can provide guidance on the process for registering a business in the city.

Contact the Business and Economic Development Department at:

City of Lawrence Business and Economic Development Department
12 Methuen Street, 1st Floor
Lawrence, MA 01840
Phone: (978) 620-3012
Email: business@cityoflawrence.com

Keep in mind that short-term rentals are currently banned in Lawrence, and there is no legal path to starting this type of business. The contacts above can provide more information on the city's existing regulations and enforcement policies, but cannot assist with obtaining a permit or license for a short-term rental operation.

Any changes to allow short-term rentals in Lawrence would need to go through the formal zoning amendment process, including public hearings and City Council approval. The Planning Department can provide more information on this process and any proposed zoning changes that could impact short-term rentals in the future.

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

On real estate investing forums like Reddit and Bigger Pockets, Airbnb hosts and property owners in Lawrence have expressed frustration with the city's strict ban on short-term rentals. Many feel the regulations are overly restrictive and prevent them from earning income from their properties.

Here are a few examples of what hosts are saying:

A Reddit user posted in the r/AirbnbHosts subreddit, "I've been trying to operate a short-term rental in Lawrence for the past year but keep getting shut down by the city. I've received multiple cease and desist letters and fines. It's incredibly frustrating as other cities nearby allow Airbnb with reasonable regulations. Lawrence seems determined to ban it outright."

In a Bigger Pockets forum thread titled "Short-Term Rental Regulations in Massachusetts," A user commented, "Lawrence is one of the worst cities in the state for short-term rentals. I had a property there that I wanted to list on Airbnb, but I quickly found out it was illegal. The zoning code doesn't allow rentals for less than 30 days in any district. I ended up selling the property as I couldn't make the numbers work with long-term tenants."

Another Bigger Pockets user replied in the same thread, "I've heard horror stories of hosts in Lawrence getting hit with huge fines for operating illegally. The city seems to be actively monitoring Airbnb and VRBO listings and cracking down hard. It's not worth the risk, in my opinion. Plenty of other towns in the area are more welcoming to short-term rentals."

In the r/AirbnbHosting subreddit, "I've been following the short-term rental debate in Lawrence for a while now. It's clear the city council has no interest in allowing them. They've shot down multiple proposals to amend the zoning code. Hosts need to accept that Lawrence isn't a viable market for Airbnb right now."

Overall, the sentiment among Airbnb hosts in Lawrence on these forums is disappointing and frustrating with the local regulations. Many feel the city is missing out on the economic benefits of short-term rentals and unfairly restricting property rights.

However, some hosts also acknowledge that Lawrence faces unique challenges with a tight housing market and concerns about preserving affordable units for long-term residents. They recognize the need for balanced regulations but feel an outright ban goes too far.

For now, hosts seem to be either avoiding the Lawrence market altogether or taking their chances with illegal operations and risking fines. There is a sense that until the city council takes action to amend the zoning code and create a legal path for short-term rentals, the situation is unlikely to change.