On Tuesday, February 13th, representatives from the Greater Boston Real Estate Board (GBREB) testified before the Boston City Council Committee on Government Operations regarding Mayor Walsh’s proposal to regulate short term rentals.
The primary effect of the proposed Ordinance would be to establish a registration system for all short-term rentals and to impose limitations on such rentals in the City of Boston.
The Ordinance initially establishes three (3) classes of properties.
1.
Home Share Units: are tenant/owner-occupied dwellings in which the tenant/owner will not be present during the short-term rentals.
2.
Limited Share Units: are tenant/owner-occupied dwellings in which the tenant/owner will be present during such rentals.
3.
Investor Units: are non-owner-occupied dwellings.
The restrictions imposed on short-term rentals depends on the above classifications. Initially, it should be noted that a “Short-term Rental” is defined as the use of a residential unit “for a tenancy of thirty or fewer consecutive calendar days for a fee.” As to “Limited Share Units”, there is no restriction on short-term rentals. “Home Share Units” may be “offered” for short-term rental 365 days per year, but the unit may not be booked for more than ninety (90) days per year. Finally, “Investor Units” may not be offered for short-term rental more than ninety (90) days per year.
In addition, certain units are prohibited from being used for short-term rentals. These include so-called “affordable housing” units, units which are designated as “Problem Properties” or “Public Nuisance Properties”, and residential units which have three (3) or more violations of this Ordinance or of municipal ordinances, noise laws, trash disposal, or similar violations within the past six (6) months. Licensed lodging houses, bed and breakfasts, and units leased to non-profits for temporary housing of medical patients and their families are exempt from this Ordinance. Any “Short-term Rentals” that do not comply with the foregoing restrictions would constitute a violation of the Ordinance.
In addition to these limitations, the Ordinance would establish a mandatory registration system for all properties offering Short-term Rentals, including all three classifications of units (Home Share, Limited Share and Investor), as well as lodging houses and bed and breakfasts. The registration forms will require the operator to disclose their name, address, relationship to the owner (i.e. agent, tenant, owner), and the classification of the unit. The operator must also certify that it follows the other technical requirements of the Ordinance, including that they have legal authority to enter into Short-term rentals, the unit is compliant with all Codes, and that such rental does not violate any lease or condominium by-laws.
To read more about this legislation, the registration system, fine structure, and GRBEB’s stance on this issue, please
click here.