Overview: Are short-term rentals allowed in Centerville, MA?

• Yes. Short‑term rentals are allowed in Centerville (Town of Barnstable, Barnstable County) under Massachusetts state law (M.G.L. c. 64G, as amended by Chapter 337 of the Acts of 2018). There is no active local STR‑specific ordinance that bans or prohibits them, and they are treated as a lawful use of residential dwellings. The Town withdrew proposed STR ordinances in November 2020, so current requirements follow state law plus general rental‑property rules.

How to start a short‑term rental business in this market

1. Confirm zoning and lawful use

• Treat the STR as a residential dwelling use; do not operate as a lodging house or rooming house. STRs are defined as an occupied property (owner‑occupied, tenant‑occupied, or non‑owner‑occupied) that is not a hotel, motel, lodging house, or B&B, where at least one room or unit is rented through advance reservations, for stays of 31 days or less.

2. Register with Massachusetts Department of Revenue (DOR) and obtain a certificate number

• All operators must register with DOR to get a certificate number; intermediaries (e.g., Airbnb, VRBO, property managers) will use this to remit taxes on your behalf.
• Register via MassTaxConnect; if you use an intermediary, ensure they have your certificate number.

3. Collect and remit room occupancy excise taxes

• Total STR tax in Barnstable: 14.45% (State excise 5.7% + Town of Barnstable local excise 6.0% + Cape Cod & Islands Water Protection Fund 2.75%). These taxes are remitted to the MA DOR.
• Returns are monthly, due by the 20th of the month following collection (e.g., August 20th for July collections).

4. Carry required liability insurance

• Maintain not less than $1 million of liability coverage for each STR stay unless your hosting platform provides equal or greater coverage. Many owners add an umbrella policy; confirm with your insurer.

5. Complete Barnstable Health Division rental registration (annual)

• The Town’s Health Division requires annual registration for rental properties. The STR must be registered with the Health Division even if you also have a DOR certificate.
• Registration is completed online via the Health Division portal.

6. Post and share required notices

• Good Neighbor notices; contact information for a local person available 24/7 within one hour; occupancy limits (2 per bedroom plus 2); trash handling; parking restrictions; prohibition on large events; and notices to operators and occupants.

7. Establish compliance and recordkeeping

• Set up processes to file DOR returns, retain documentation, handle complaints, and respond to inspections or violations.

Required documents, permits, licenses, and guidelines

• MA DOR STR registration certificate number (operator registration on MassTaxConnect).
• Intermediary (platform/agent) written agreement to collect and remit taxes on your behalf.
• Liability insurance certificate (≥ $1 million per stay), or proof the hosting platform provides equal/greater coverage.
• Barnstable Health Division Rental Registration (annual renewal).
• STR safety and compliance measures (smoke/CO detectors, fire extinguisher, posting of rules and local contacts).
• Good Neighbor notices; notices to operators and occupants of local regulations.

Specific regulations for Centerville/Barnstable and Massachusetts State law (Massachusetts)

• Applicability: STRs for 31 days or less are subject to the room occupancy excise tax. The tax applies once a property is rented for more than 14 days in a calendar year; renting 14 days or fewer annually is exempt but still requires registration and compliance notices.
• Tax rates and allocation: State 5.7% + local 6% (Barnstable’s local room occupancy rate) + Cape Cod & Islands Water Protection Fund 2.75% = 14.45% total. All remitted to the MA DOR.
• Registration: Operators must register with DOR to obtain a certificate number; intermediaries must collect and remit taxes.
• Insurance: Minimum $1 million liability coverage per stay unless the platform provides equal/greater coverage.
• Local options: Municipalities may add up to a 3% community impact fee for owners with multiple properties; Barnstable has not adopted this fee to date.
• Exemptions: Certain properties are exempt from the room occupancy tax (e.g., certified alcohol and drug‑free housing, tenancies‑at‑will/month‑to‑month, lodging for seasonal employees, certain U.S. military travel, and time‑share units to avoid double taxation).

Local (Town of Barnstable, including Centerville)

• Zoning: STRs are treated as a lawful residential use; no active zoning prohibition specific to STRs exists. The Town withdrew proposed STR ordinances in November 2020.
• Health Division registration: Annual rental registration is required for all rental properties, including STRs. The registration application is available online and must be renewed yearly.
• Complaint and enforcement: A 24/7 rental complaint hotline is available; complaints can also be submitted online. For immediate safety issues, contact police; for public health concerns, contact the Health Division.
• Operational expectations (from draft ordinances and outreach, not yet adopted as binding rules): Occupancy limits, 24/7 local point of contact, posted rules, trash handling (weekly or per occupancy), parking restrictions (no front‑yard parking), and prohibition on large events. These expectations may be implemented in future ordinances; follow best practices until formal rules are adopted.

Cape Cod & Islands Water Protection Fund

• The 2.75% fund tax applies in Barnstable County; Nantucket and Martha’s Vineyard are not automatically in and must opt in. The fund supports wastewater management planning under the federal Clean Water Act.

Contact information (local authority)

• Health Division (rental registration and health matters): 508‑862‑4644
• Planning & Development (zoning, STR information): 508‑862‑4678
  • Elizabeth Jenkins, Director: elizabeth.jenkins@town.barnstable.ma.us
• Inspectional Services (Building Commissioner/Director): 508‑862‑4038
  • Brian Florence: brian.florence@town.barnstable.ma.us
• Finance Director (tax questions): 508‑862‑4660
  • Mark Milne
• Rental Complaint Hotline (24/7): 508‑504‑9779
• Submit STR/rental complaints online (Town portal): available via the Town’s compliance portal.
• Cape & Islands Association of REALTORS (industry guidance): 508‑957‑4300; contact Ryan Castle, CEO.
• Town Hall: 508‑862‑4956; 367 Main Street, Hyannis, MA 02601

Links to source pages

• Town of Barnstable – Short‑Term Rental Information Page (overview, zoning context, contacts): townofbarnstable.us/Departments/planninganddevelopment/Barnstable-Short-Term-Rental-Information.asp
• Barnstable Short‑Term Rental FAQ (Room Occupancy Excise details, taxes, exemptions): tobweb.town.barnstable.ma.us/Departments/CommunityServices/Divisions/Short-Term-Rentals---Frequently-Asked-Questions.pdf?ver=2
• Short‑Term Rental Overview (Town Council Workshop, Feb 27, 2020): townofbarnstable.us/Departments/planninganddevelopment/Projects/TC%20STR%20Workshop%202020%2002-27.pdf
• MA Department of Revenue – Room Occupancy Tax FAQ: www.mass.gov/dor/roomocc
• MA DOR – Room Occupancy Frequently Asked Questions: www.mass.gov/info-details/room-occupancy-frequently-asked-questions
• MA DOR – Technical Information Release (TIR‑19‑3): www.mass.gov/technical-information-release/tir-19-3-changes-to-the-room-occupancy-excise-in-an-act-regulating
• Cape & Islands Association of REALTORS – Short‑Term Rental Guidance and Resources: cciaor.com/shorttermrentals/
• Barnstable Health Division – Rental Registration Application: www.townofbarnstable.us/Departments/healthdivision/Applications_and_Forms/Rental-Registration-Application.pdf

Notes for STR investors

• Centerville is a village within the Town of Barnstable. No separate municipal STR ordinance exists for Centerville; state law controls taxation and registration, and the Town’s Health Division handles local rental registration.
• Monitor Town proceedings for any future STR‑specific ordinances; current indications are that proposals were withdrawn and no binding local rules beyond health registration are in effect.
• Maintain compliance: keep your DOR registration current, file monthly returns through MassTaxConnect, carry adequate liability coverage, and renew your Barnstable Health Division rental registration annually.