Executive Summary: STR Allowability in Charlestown

Yes, short-term rentals are explicitly allowed in Charlestown, Massachusetts, subject to strict regulatory requirements under the City of Boston's comprehensive short-term rental ordinance. Charlestown, as one of Boston's historic neighborhoods, falls under the City's unified STR regulatory framework. The City's program allows residential units to be rented for fewer than 28 consecutive days for a fee, but only within owner-occupied condominiums, single-family, two-family, and three-family buildings. For two-family and three-family buildings, the owner-occupant must own all units.

How to Start a Short-Term Rental Business in Charlestown

Initial Planning Phase

1. Verify Property Eligibility

   • Confirm your property is in a permitted building type (owner-occupied condo, single-family, two-family, or three-family)
   • Use Boston's STR eligibility tool to check preliminary eligibility
   • Ensure no affordability covenants or income restrictions apply

2. Determine Your STR Type

   • Limited Share Unit: Rent part of your primary residence while present ($25/year)
   • Home Share Unit: Rent entire primary residence when you're away ($200/year)
   • Owner-Adjacent Unit: Rent entire unit in same two/three-unit property as your primary residence ($200/year)

3. Prepare Documentation

   • Gather two proof documents showing primary residence status
   • Ensure property compliance with all housing codes and ordinances

Registration and Licensing Process

1. Complete STR Registration

   • Register online through Boston's official portal
   • Pay applicable registration fees
   • Receive registration number for listing display

2. Obtain Business Certificate

   • File through City Clerk's office after STR registration approval
   • Fee: $35 for Massachusetts residents, $65 for non-residents
   • Valid for 4 years

3. Post-Registration Requirements

   • Display STR registration number on all listings
   • Post safety information inside unit
   • Notify abutters within 30 days of license issuance

Required Documents, Permits, Licenses, and Guidelines

Primary Documentation Requirements

Proof of Primary Residence (two required):

• Proof of residential exemption
• Utility bill (gas, electric, oil, or water) showing service and mailing addresses
• Voter registration certificate from Elections Department
• Motor vehicle registration
• Deed
• Driver's license or state-issued identification

Required Permits and Licenses

1. Short-Term Rental Registration

   • Annual registration through Inspectional Services Department
   • Registration number must appear on all listings
   • Non-transferable with property sale

2. Business Certificate

   • Filed through City Clerk's office
   • Required after STR registration payment
   • Must be renewed every 4 years

3. Lodging House/Bed & Breakfast (if applicable)

   • Current license from Licensing Board (lodging houses)
   • Certificate of Occupancy from Inspectional Services (bed & breakfasts)

Compliance Guidelines

• Occupancy Limits:

  • Limited Share: 3 guest bedrooms or 6 guests (whichever fewer)
  • Home Share: 5 bedrooms or 10 guests (whichever fewer)
  • Owner-Adjacent: Subject to standard occupancy limits

• Primary Residence Standard: Must occupy property for at least 9 months of any 12-month period

• Safety Requirements: Post unit information regarding fire extinguishers, exits, and pull alarms

• Listing Requirements: Include active registration number on all rental listings

Specific Regulations for Charlestown/Boston STRs

City of Boston Regulations

Building and Zoning Requirements:

• Must be in residential-use properties only
• Excludes hotels, motels, executive suites, and non-residential uses
• Cannot be in congregate living, elderly housing, group residences, or transitional housing
• Must not be subject to affordability covenants or income restrictions

Operational Restrictions:

• Host Presence Requirement: Limited Share requires owner presence during all rentals
• Property Ownership: Owner-Adjacent units require ownership of entire two/three-unit building
• Maximum Rental Days: No annual cap specified for eligible units (365 days allowed)

Compliance and Enforcement:

• No more than 3 violations within 6-month period (starting Jan 1, 2019) of:
  • STR ordinance violations
  • Excessive noise ordinances
  • Improper trash disposal
  • Disorderly conduct
  • State Sanitary, Building, and Fire Code violations
• No outstanding violations permitted
• Cannot be located in "Problem Property" or owned by Problem Property owner

Massachusetts State-Level Regulations

Room Occupancy Taxes:

• City of Boston excise and convention center taxes apply
• Massachusetts excise tax under Section 64G(3) of State Tax Code
• Intermediaries (like Airbnb) collect and remit taxes as of July 1, 2019
• Hosts must register with Massachusetts Department of Revenue

State Tax Requirements:

• Registration with Massachusetts DOR required
• Compliance with state room occupancy tax collection and remittance

Legal Considerations:

• Hosting must comply with all local, state, and federal laws
• Cannot violate lease agreements, condo board rules, HOA rules, or tenant organization rules

Local Neighborhood Considerations

Charlestown-Specific Factors:

• Historic district considerations may apply
• Community impact concerns from previous investor-unit conversions
• Local neighborhood associations may have additional guidelines
• Strong local advocacy for housing preservation over investor conversions

Abutter Notification Requirements:

• Notify all residential dwellings within 300 feet of STR unit
• Must complete within 30 days of license issuance
• Abutter defined as any residential dwelling within specified radius

Contact Information for Local STR Authorities

Primary Contact: Inspectional Services Department (ISD)

Address:

• ISD Housing Division
• 1010 Massachusetts Ave
• Boston, MA, 02118

Phone: 617-635-5300

Email: shorttermrentals@boston.gov

Website: www.boston.gov/departments/inspectional-services/short-term-rentals

Online Registration Portal: onlinepermitsandlicenses.boston.gov/isd/ShortTermRental/

Additional City Contacts

Boston Licensing Board:

• Phone: Contact through main city number
• Website: www.cityofboston.gov/licensing

City Clerk's Office (Business Certificates):

• Phone: Contact through main city number
• Website: www.boston.gov/departments/city-clerk

BOS:311 (Non-Emergency Issues):

• Phone: 311
• Website: www.cityofboston.gov/311/

Housing Division

Phone: 617-635-3880

Innovation and Technology Department

Phone: 617-635-4783

Source Links and References

Official City Resources

1. Boston STR Program Main Page: www.boston.gov/departments/inspectional-services/short-term-rentals
2. Online Registration Portal: onlinepermitsandlicenses.boston.gov/isd/ShortTermRental/
3. STR Eligibility Tool: data.boston.gov/dataset/short-term-rental-eligibility/resource/83621b97-9a00-4aa7-bf43-28cae04969d4
4. Short-Term Rental Ordinance (PDF): www.boston.gov/sites/default/files/document-file-08-2018/short-term_rental_ordinance.pdf
5. Business Certificate Application: www.boston.gov/departments/city-clerk/how-apply-business-certificate

State Resources

1. Massachusetts DOR Room Occupancy Tax: mtc.dor.state.ma.us/mtc/_/#2
2. Massachusetts Room Occupancy Tax Guide: www.mass.gov/info-details/room-occupancy-excise-tax
3. Massachusetts General Laws Chapter 64G Section 3: malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter64G/Section3

Additional Resources

1. Boston Zoning Code: www.bostonredevelopmentauthority.org/zoning
2. Problem Property Ordinances:
   • Chapter 9-13.1: library.amlegal.com/nxt/gateway.dll/Massachusetts/boston/chapterixbuildingregulation?f=templates$fn=default.htm$3.0$vid=amlegal:boston_ma$anc=JD_9-13.1
   • Chapter 16-57.2: library.amlegal.com/nxt/gateway.dll/Massachusetts/boston/chapterxviprohibitionspenaltiesandpermit?f=templates$fn=default.htm$3.0$vid=amlegal:boston_ma$anc=JD_16-57.2
3. Rental Registration: www.boston.gov/departments/inspectional-services/how-register-rental-property

Industry and Platform Resources

1. Airbnb Boston Host Guide: www.airbnb.com/help/article/859
2. Short-Term Rental Registration Assistance: www.rocketlawyer.com/short-term-rental-license

Key Takeaways for Charlestown STR Investors

Charlestown offers a viable market for short-term rental investment, but within strict regulatory constraints designed to preserve long-term housing stock. The key to successful STR operation in Charlestown lies in:

1. Owner-Occupancy Compliance: All STR units must be owner-occupied properties
2. Regulatory Adherence: Strict compliance with Boston's comprehensive ordinance
3. Community Integration: Respect for neighborhood character and abutters
4. Proper Documentation: Thorough preparation of all required paperwork
5. Ongoing Compliance: Annual renewals and continued adherence to all regulations

The regulatory environment is designed to balance economic opportunities for property owners with housing preservation goals, making Charlestown suitable only for genuine owner-operators rather than speculative or investor-driven STR operations.