Overview: Are Short-Term Rentals Allowed in Berkshire, MA?

Yes, short-term rentals are allowed in Berkshire, Massachusetts, but they are extensively regulated at both the state and local levels. The Commonwealth enacted a comprehensive regulatory framework in 2018 (Chapter 337 of the Acts of 2018) that requires registration, taxation, insurance, and safety compliance. Individual municipalities have adopted additional ordinances and bylaws that may further restrict operations, impose additional requirements, and establish local taxation options.

As of January 2023, Berkshire County had 1,891 registered short-term rental operators, representing nearly 3% of the region's housing units. Approximately 15 of the county's 32 cities and towns have adopted local option taxes between 4% and 6%, with three communities implementing community impact fees of 3%.

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How to Start a Short-Term Rental Business in Berkshire, MA

Step 1: State-Level Registration and Compliance

All short-term rental properties must be registered with the Commonwealth of Massachusetts through the Executive Office of Housing and Economic Development and the Massachusetts Department of Revenue. The state registry is available online at the Massachusetts Department of Revenue website. Registration is required for any rental of 31 days or less, and the registry search functionality allows verification of existing registrations.

Step 2: Insurance Requirements

Operators must carry no less than $1 million in liability coverage for each stay, unless the hosting platform provides equal or greater coverage. This insurance must defend and indemnify the operator, tenants, and building owners for bodily injury and property damage arising from the short-term rental.

Step 3: Safety Compliance

Properties must post conspicuous information about the location of fire extinguishers, gas shut-off valves, fire exits, and fire alarms. Additionally, properties must contain:

• Smoke detectors
• Carbon monoxide alarms
• A properly maintained and charged multi-purpose fire extinguisher

Step 4: Tax Registration and Collection

Operators must collect and remit both state and applicable local taxes:

• State tax: 5.7% of rental charges
• Local option tax: Up to 6% (adopted by individual municipalities)
• Community impact fee: Up to 3% (available only if local option tax is adopted)

Step 5: Local Compliance

Research and comply with city or town-specific regulations, which may include:

• Additional permits or licenses
• Local registration requirements
• Zoning compliance
• Safety inspections
• Operational restrictions (rental day limits, occupancy caps)

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Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements:

1. Certificate of Registration with the Massachusetts Department of Revenue
2. Liability Insurance ($1 million minimum or platform coverage)
3. Safety Information Posting (fire safety locations and instructions)
4. Tax Registration and remittance procedures

Municipal Requirements (Vary by Location):

1. Local Registration/Permit (required in most municipalities)
2. Building/Fire/Health Inspections (frequency varies by jurisdiction)
3. Compliance with Municipal Safety Standards
4. Adherence to Local Zoning Bylaws

Documentation to Post in Unit:

1. Certificate of registration
2. Short-term rental street address
3. Contact information for operator and emergency contacts
4. Instructions for recycling and waste disposal
5. Safety equipment locations and usage information
6. Noise restrictions and quiet hours rules

Professional Documentation Needs:

• Operating procedures manual
• Guest rules and regulations
• Emergency contact protocols
• Insurance policy documentation
• Tax records and remittance documentation

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Specific Regulations: City, County, and State Level

State-Level Regulations (Massachusetts):

Registration and Definitions:

• Short-term rentals defined as rentals of 31 days or less
• All properties must register with state
• State registry online with property address display
• No statewide inspection requirement mandated

Tax Structure:

• State tax: 5.7%
• Local option: Up to 6%
• Community impact fee: Up to 3% (requires local option adoption)
• Community must direct 35% of impact fee to affordable housing or infrastructure

Insurance Requirements:

• $1 million liability coverage per stay minimum
• Must defend and indemnify all parties
• Platform insurance may satisfy requirement if equal or greater coverage

County-Level Trends (Berkshire County):

Adoption Status:

• 1,891 registered operators as of January 2023
• 15 of 32 municipalities adopted local option taxes
• 3 communities implemented community impact fees
• Varied local regulation approaches across the county

Municipal-Level Examples:

Great Barrington:

• Owner registration with town required
• One short-term rental limit per owner
• Maximum two rooms rentable
• Owner-occupied properties: unlimited rental days
• Non-owner occupied: 150-day annual limit
• Corporation ownership prohibited
• $100-$300 fine structure for violations
• Noise restrictions after 8 PM
• Safety equipment requirements

Lenox:

• Current zoning allows 75 days by right annually
• Special permit allows up to 110 days annually
• New proposed bylaw includes:
  • Sprinkler system requirements for properties established after October 17, 2017
  • Annual inspections for non-owner occupied properties
  • Five-year inspection cycle for owner-occupied properties
  • Monitored fire alarm systems for non-owner occupied properties
  • Quiet hours enforcement
  • Registration and fee requirements

Pittsfield (Newly Adopted 2025):

• 150-day annual rental cap
• Registration and vetting required
• Multi-department enforcement (building, police, fire, health)
• Licensing board hearing process for violations
• Definition of STR as 30 consecutive days or less

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Contact Information for Local Authority

Berkshire Regional Planning Commission

Address: 1 Fenn Street, Suite 201, Pittsfield, MA 01201
Phone: 413.442.1521
Website: www.berkshireplanning.org
Contact Person: Thomas Matuszko, Executive Director
Email: tmatuszko@berkshireplanning.org
Phone Extension: 413.442.1521 x34

Massachusetts Department of Revenue

Website: www.mass.gov (Room Occupancy Excise Tax section) Registry Search: Available through Massachusetts Department of Revenue online portal

Municipal Contacts (Selected Examples):

Great Barrington:

• Town Hall: Contact through Great Barrington town website
• Building Inspector/Health Department for inspections

Lenox:

• Land Use Director/Town Planner: Eammon Coughlin
  Email: ecoughlin@townoflenox.com
• Town Hall: Contact through townoflenox.com
• Select Board: Public hearing process for bylaw updates

Pittsfield:

• City Planner: Kevin Rayner
• Building Commissioner: Zoning and licensing enforcement
• Licensing Board: License revocation hearings
• City Council: Ordinance questions and process

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Links to Source Pages

Primary Regulatory Documents:

1. Berkshire Regional Planning Commission STR Toolkit: berkshireplanning.org/wp-content/uploads/2023/07/Toolkit-2023-Short-Term-Rentals-revised.pdf
2. Massachusetts Chapter 337 of the Acts of 2018: berkshireplanning.org/wp-content/uploads/program_documents/brpc_initiative/short-term-rentals/default/Ch.337-Acts-of-2018_.pdf
3. BRPC Short-Term Rental Initiative Page: berkshireplanning.org/initiatives/short-term-rentals/

Municipal Resources:

4. Lenox Draft STR General Bylaw 2025: www.townoflenox.com/sites/g/files/vyhlif3341/f/news/draft_lenox_str_general_bylaw_2025.pdf

State Resources:

5. Massachusetts Room Occupancy Excise Tax Information: www.mass.gov/info-details/room-occupancy-excise-tax
6. Massachusetts State Building Code: www.mass.gov/massachusetts-state-building-code-780-cmr

Additional Resources:

7. BerkshireRealtors STR Information: berkshirerealtors.net/short-term-rentals/
8. DLS Guidance on Local Option Excise Adoption: Available through BRPC toolkit
9. Sample Municipal Bylaws: Available through BRPC toolkit including Hull, Manchester-by-the-Sea, and West Newbury examples

News and Updates:

10. Berkshire Eagle STR Coverage: www.berkshireeagle.com/news/central_berkshires/short-term-rental-building-code-updates/article_71534569-72f5-4e4d-a1b7-d162e97cb6a0.html
11. WAMC Pittsfield STR Ordinance Coverage: www.wamc.org/news/2025-09-15/pittsfield-adopts-short-term-rental-ordinance-erects-regulations-and-registry-requirements

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Important Considerations for Investors

Market Dynamics:

• High tourism destination status creates strong STR demand
• Housing shortage concerns drive regulatory scrutiny
• 3% of regional housing units currently in STR use

Regulatory Evolution:

• Municipal regulations are actively evolving and becoming more restrictive
• State building code updates may require costly sprinkler system installations
• Registration and enforcement becoming more sophisticated

Financial Planning:

• Total effective tax rate can reach 14.7% (5.7% state + 6% local + 3% impact fee where applicable)
• Insurance requirements add significant operational costs
• Potential for inspection and compliance costs

Investment Strategy:

• Owner-occupied properties often have fewer restrictions
• Municipal variations create opportunities for strategic positioning
• Newer regulations may favor smaller operations over corporate STR portfolios

Disclaimer: This guide is based on information current as of the documents' dates. Regulations are subject to change. Investors should verify current requirements with local authorities before making investment decisions.