Recently. the governor signed legislation in hopes to even the playing field between hotels and short-term rentals. This change is directly affecting investors who have bought multiple condo units to then rent out through AirBnB. Through these multiple purchases, these investors have created a sort of virtual hotel where they have been able to run a central office anywhere, regardless of where their units may be. Despite running their virtual hotel, they have not been paying the same fees and taxes as a traditional hotel. This legislation is aimed to address this issue in hopes to achieve fairness across the board.

Recently, in Boston specifically, Mayor Marty Walsh, signed a bill that pulled back the ability to enter short term rentals. AirBnB initially was unhappy with this, and a lawsuit ensued. Since the lawsuit has been resolved, AirBnB is now enforcing that measure. Ultimately, the new law requires that a person who owns a short-term rental will be restricted to only hosting through their primary residence. AirBnB is now compliant with the city, so if an individual has a property that is not registered with the city, the application will not list it on the AirBnB website.

The restrictions are as follows:
1. If you own a house, you are able to rent out a room of your primary residence.
2. If you own a house and you are going away and during that period you would like to rent out your home, you are able to do this.
3. If you own a two/three family, you are able to rent it out, but are limited to only renting out one of the units.
4. You can only be a host for one property in the city of Boston.

These changes are meant to address Boston’s shortage of apartments to rent. Long-term rental properties are now returning to the market. 2,000-2,300 units are now open for long-term rental, so while this may be detrimental to some investors, it has led to opportunities for others to buy condos.

If you have any questions about renting or purchasing a condominium, contact Stiles Law by calling (781) 319-1900.

Copyright © 2020 Stiles Law, All rights reserved. Stiles Law is a Massachusetts licensed law firm and all content is based on Massachusetts law. The information presented above is meant to be used for general informational purposes and it should not be construed as legal advice or legal opinion on any specific facts.