If you are currently listing part or all of your home on Air Bnb or are considering renting out a space in your home for short term periods, you’ll want to pay close attention to the new short term rental laws in Massachusetts. These new laws will require all short term rentals to be registered in a database with the state. The law also imposes a 5.7% hotel room tax to all short term rentals. Plus, towns and cities can choose to add an additional tax of up to 6% (6.5% in Boston) and a 3% community impact fee. Concerning the matter of insurance, people renting out a room will need to have at least $1 million in liability insurance.
When do these laws go into effect?
The state-level laws are already in effect, but towns and cities will have the option to create their own restrictions around short-term rentals.
How is a short-term rental defined in this law?
These new short term rental laws apply to all rentals for a period of 31 days or less, but does not apply to properties rented less than 14 days out of the year. Ordinary tenancies, such as an annual lease or tenancy-at-will, are not affected by this bill.
How does this law apply to rentals already booked for 2019?
Any 2019 rental booked before December 31, 2018 is exempted from the short term rental law.
Be sure to check with your city or town to see if they will implement any further restrictions on short term rentals.
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