For many real estate investors and homeowners alike renting their properties on short-term rental sites such as Airbnb has provided steady cash flow. New regulations took effect in the City of Boston on January 1, 2019. These regulations now require the property to be
A short-term rental is defined by the City of Boston as the use of a residential unit for residential occupancy — for a period of fewer than 28 consecutive calendar days — for a fee. The ordinance goes on to further break down short-term rentals into three classifications.
Limited Share Units
Want a rotating roommate? The first classification is limited share units would be renting out a private bedroom in your home which is your primary residence. The owner would be present during the rental. The fee for this type of unit is $25 per year. Occupancy is limited to three guest bedrooms or six guests, whichever is fewer.
Home Share Units
Do you travel often and want to earn some income while you are gone? Home share units have a whole unit available for short-term rental at the primary residence of an owner-operator. The fee is $200 per year. Occupancy is limited to five bedrooms or 10 guests, whichever is fewer.
Want to maximize the return on that three-family you just purchased, this last classification would apply to you. Owner-adjacent units are considered as those within owner-occupied two- or three-family buildings. In this situation, the owner lists a single secondary unit as a short-term rental. The fee is $200 per year
As with any government ordinance, there are more details and nuances that come into play. To fully educate yourself head over to the City of Boston Inspectional Services Department website to read the full details and learn how to register your property.
I personally have utilized the short-term rental strategy with some of my own properties. Please feel free to reach out to me if you would like to discuss this further and how it may work for your situation.