Over the past decade, Massachusetts has steadily tightened its regulation of short-term rentals, turning what began as a loose online marketplace into a highly regulated sector. The state now treats short-term rental operators as taxable lodging providers, subject to registration, insurance, and zoning requirements. Boston took the lead in January 2019 with one of the first municipal ordinances in the country, and since then, many communities—including Cambridge, Brookline, Lynnfield, and Salem—have enacted their own rules, often with even stricter limits. For condominium boards and property managers, this growing patchwork of regulations has major implications for governance, enforcement, and risk management.
At the state level, Massachusetts General Laws c. 64G regulates all short-term rentals of 31 days or less. Property owners must register their units with the Massachusetts Short-Term Rental Registry, renew the registration annually, and submit supporting documentation confirming compliance with state and local requirements. This includes proof of at least $1 million in liability insurance (unless equivalent coverage is provided by a hosting platform), certification from the local municipality verifying the unit’s eligibility for short-term rental use, documentation establishing the property as the operator’s primary residence where applicable, a detailed floor plan identifying required safety features, and a certificate of good standing from the Department of Revenue confirming that all state obligations are current. Collectively, these measures reflect the Commonwealth’s intent to standardize safety and accountability in what was once an unregulated market.
Building on that foundation, Boston’s short-term rental ordinance remains one of the strictest in the state. Rentals are permitted only in owner-occupied properties, and owners must reside there at least nine months of the year. Units fall into three categories—home-share, limited-share, and owner-adjacent—with caps on the number of rental days per year. Licenses must be renewed annually through the Inspectional Services Department, and operators face fines of up to $300 per day for violations. Corporate ownership structures are not allowed to operate short-term rentals, and all listings must display a valid registration number.
Cambridge follows a similar but even narrower model. Owners must live in the property and may only rent while away for up to 14 days per year. The city requires safety inspections and proof of compliance with the building and sanitary codes. Violations may lead to daily fines and suspension of registration. Brookline, Lynnfield, and Salem have gone further, prohibiting short-term rentals entirely in single-family homes that are not owner-occupied. Revere, Amesbury, and other municipalities have similarly followed suit, implementing their own registration fees, inspection programs, and local licensing processes. Given this momentum, it is likely that additional Massachusetts cities and towns will continue adopting their own ordinances, reflecting a broader trend toward localized regulation and stricter oversight of the short-term rental market.
For condominium communities, these laws present unique challenges. Most master deeds and bylaws require boards to maintain the building’s residential character and prohibit uses that create nuisances or disturbances. Short-term rentals can undermine both, increasing foot traffic, noise, and security concerns in shared hallways or common areas. Frequent turnover also strains parking, trash collection, and maintenance resources. Even compliant hosts can inadvertently expose the association to conflicts if guests violate rules, damage property, or disrupt other residents. When these issues arise, boards often find themselves navigating competing interests between well-meaning owners and frustrated neighbors.
Short term rental activity can also create significant legal and financial exposure for condominium associations. Many master insurance policies are written for traditional residential use, and coverage may be limited or denied if a loss occurs in a unit being used for transient occupancy without disclosure. In some cases, local building or health departments may issue a cease-and-desist order to a unit owner if a property is being rented in violation of zoning, occupancy, or registration requirements. Such enforcement actions can also draw attention to the association, particularly if the activity is ongoing or appears unchecked. Boards that are aware of unapproved rental activity but fail to respond may face allegations that they neglected their duty to enforce the governing documents or to protect the safety and welfare of residents. Taking timely, measured action helps reduce these risks and demonstrates that the association is fulfilling its obligations under Massachusetts law.
Boards should act proactively rather than reactively when it comes to short-term rentals. The most effective step is to review and, if necessary, update the governing documents to clearly define what constitutes “transient occupancy” and to establish a minimum lease duration that reflects the community’s expectations. Associations may also require unit owners to provide proof of compliance with all applicable state and municipal registration requirements and should consider adopting fines or other enforcement measures for repeated or unauthorized activity. Clear and consistently applied rules not only strengthen the association’s authority but also promote fairness and transparency among owners. Engaging experienced condominium counsel can help ensure amendments are properly drafted, enforcement actions are legally sound, and communications with local inspectors or city officials are coordinated. In a regulatory landscape that continues to evolve, a well prepared board is the best safeguard against both conflict and liability.
Short term rentals are here to stay, and regulation will only continue to increase. Associations that take proactive steps now by clarifying their rules and applying them consistently can preserve the stability of the community while protecting the rights of responsible owners. For guidance on updating governing documents or addressing short-term rental issues within your condominium, contact Allcock & Marcus, LLC for tailored legal advice and assistance.
Written by
Greg Mistikai
greg@amcondolaw.com