Eastham, Massachusetts Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are short-term rentals allowed in Eastham?

Short-term rentals are explicitly allowed in Eastham, MA, but they are tightly regulated. Every rental property must be registered annually with the Health Department, including any “Airbnb-type” short-term rentals (31 days or fewer). Eastham has also adopted a cap on the number of short-term rentals a person can operate (two per owner, with legacy protections for existing holders) and imposes inspection, safety, water quality, and compliance standards. Noncompliance can result in fines and denial of the certificate. [Source: www.eastham-ma.gov/257/Rental-Certificate-Program]

Starting a Short-Term Rental Business in Eastham

The process is fully online and streamlined via the Town’s OpenGov portal. As of November 1, 2024, all rental certificate applications (including renewals) must be submitted online. The Health Department offers limited walk-in support for application assistance on Thursdays, 2–4 pm (excluding the last Thursday of the month). Appointments outside that window are available by request. You can reuse a single OpenGov account across towns.

The stepwise process:

Verify category and fees (see “Required Documents” and “Fees”).
Complete the online application in OpenGov.
Upload required documents (water quality proof, State DOR registration number, ownership documents for LLCs/Trusts, and leases for year-round/ADUs).
Submit fees.
If triggered (first year or per inspection cycle), schedule and pass an in-person Health Department inspection.
Receive your rental certificate.

Key application link: easthamma.portal.opengov.com/categories/1087

Source: www.eastham-ma.gov/257/Rental-Certificate-Program

Required Documents, Permits, Licenses, and Guidelines

All applicants must assemble and submit the following:

State Registration Number (Massachusetts Department of Revenue)
- Required for every rental and for the application. Register or confirm your State Registration Number for the Room Occupancy Excise Tax.
- State overview link: www.mass.gov/info-details/room-occupancy-excise-tax#overview-
Water Quality Proof
- Town water customers: Provide your Water Bill #.
- Non-town water customers: Upload a current calendar-year water test result meeting minimum standards.
- Water testing options:
  - Barnstable County Water Quality Lab: $70. Kits available at the Board of Health; samples returned before 9:00 am Tue/Thu with payment and chain of custody.
  - Envirotech: $65. Kits available at the Board of Health; samples returned before 12:00 pm Mon–Fri with payment and chain of custody.
- Special conditions:
  - Nitrates > 5 mg/L: Provide bottled water; test every 30 days until two consecutive results are <5 mg/L; upload receipts.
  - Nitrates > 10 mg/L: Certificate withheld until connection to town water.
  - Sodium > 60 mg/L: Provide bottled water; upload receipts.
  - Sodium > 100 mg/L: Certificate withheld until connection to town water.
Ownership Documents (when applicable)
- If owned via LLC, Trust, or joint ownership, upload only the page listing every owner (e.g., abstract of trust or LLC operating agreement—do not upload the full trust/LLC document). Your application will be delayed without this when requested.
Lease Agreements (when applicable)
- Year-round rentals and Accessory Dwelling Units (ADUs) must upload a copy of the tenant lease. This is visible only to Town staff and the applicant.
Insurance
- Hosts must carry not less than $1 million of liability coverage for each stay unless the hosting platform provides equal or greater coverage.

Source: www.eastham-ma.gov/257/Rental-Certificate-Program

Specific Regulations (Town, County, and State)

Town-Level (Eastham Board of Health)

Registration and Fees
- Short-term rentals are defined as 31 days or fewer.
- Fees:
  - Short-term studio/one-bedroom: $225
  - Short-term multi-bedroom dwelling unit: $350
  - Seasonal rental (more than 31 days, less than 12 months): $350
  - Year-round rental (12 consecutive months): $100
  - Accessory Dwelling Unit (ADU): $100
  - Cottage Colony: $350 (2+ units on same parcel under single ownership; regulated separately under Hotels/Motels/Cottage Colonies)
  - Cottage Colony (one unit independently owned and rented short term): $350
  - Cottage Colony (one unit independently owned and rented 12 consecutive months): $100
  - Hotel/Motel/Inn/Campground: $200
Registration Deadlines and Enforcement
- Online application is mandatory as of November 1, 2024.
- The Town actively monitors online advertisements for unregistered rentals.
- Renting without a certificate violates Board of Health Regulations and can result in fines up to $300 per day.
- Source: www.eastham-ma.gov/257/Rental-Certificate-Program
Inspections
- Required for all properties in the first year and every three years thereafter if continuously rented. Conducted in-person. Focus areas include:
  - Functioning smoke and carbon monoxide alarms on every level and within 10 feet of every bedroom
  - Availability of hot water
  - Labeled electrical panel
  - Functional doors, windows, and locks
  - Minimum sanitary conditions
  - Proper egress and trash/recycling storage
- Failing any critical item results in a failed inspection.
- Source: www.eastham-ma.gov/257/Rental-Certificate-Program and www.eastham-ma.gov/Faq.aspx?QID=266
Legacy Clause (Cap on Number of Short-Term Rentals)
- Effective 2025 rental year. Each owner may register only two units as short-term rentals, except for Cottage Colonies under single ownership.
- Protection for Existing Operators: Owners with more than two valid short-term certificates prior to December 2024 can continue to renew for the same units until transfer, conveyance, or non-renewal.
- Corporate Ownership: Prohibited. LLC, Trust, or S Corp ownership is allowed only if every shareholder/partner/member is a natural person, as documented at registration.
- Source: www.eastham-ma.gov/257/Rental-Certificate-Program and www.eastham-ma.gov/Faq.aspx?QID=266

County-Level (Barnstable County)

Water Protection Trust Fund
- A 2.75% surcharge is applied to short-term rental transactions to support wastewater and water quality projects countywide (in addition to state and local occupancy taxes).

Source: www.eastham-ma.gov/257/Rental-Certificate-Program

State-Level (Massachusetts)

Room Occupancy Excise Tax
- Applies to rentals of 90 days or fewer in hotels, motels, B&Bs, lodging houses, and short-term rentals of 31 days or fewer (effective July 1, 2019).
- State tax rate: 6%.
- Hosts (or platforms) must collect and remit this tax.
- State overview link: www.mass.gov/info-details/room-occupancy-excise-tax#overview-
- Registration: www.mass.gov/info-details/room-occupancy-excise-tax#registration-and-certificate-general-information-
Short-Term Rental Occupancy Tax Summary for Eastham
- Total rate: 14.75%
- Breakdown:
  - 6% to the Commonwealth
  - 6% to Eastham via the state (same as hotels/B&Bs)
  - 2.75% to Eastham via state Water Protection Trust Fund (countywide)
- Exemptions:
  - Renting a home for fewer than 14 days annually
  - Long-term rentals defined as over 31 days to the same occupant(s)
- Liability Coverage: Minimum $1 million per stay (or platform coverage of equal or greater value).
- Source: www.eastham-ma.gov/257/Rental-Certificate-Program

Contact Information (Local Authority in Charge of STRs)

Eastham Health Department

Physical Address: 2500 State Highway, Eastham, MA 02642
Phone: 508-240-5900, ext. 3230
Fax: 508-240-5918
Hours: Mon–Thu 8:00 am–4:00 pm; Fri 8:00 am–12:00 pm
Health Department Contact Form: www.eastham-ma.gov/formcenter/Staff-Contact-4/Contact-the-Health-Department-105

Rental Application Portal (OpenGov): easthamma.portal.opengov.com/categories/1087

Source: www.eastham-ma.gov/257/Rental-Certificate-Program