Easthampton, MA Short-Term Rental Investment Guide

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

Short-term rentals are currently allowed but in a state of regulatory transition in Easthampton, MA. As of March 2025, the city has suspended zoning enforcement on short-term rentals while officials develop comprehensive regulations. A detailed ordinance was being considered with an effective date of May 1, 2025, suggesting that formal regulations will soon be implemented.

Current Status: The city voluntarily suspended enforcement actions related to short-term rentals while the City Council, Planning Board, and Zoning Board of Appeals review and determine whether to implement new zoning or general ordinances regulating short-term rentals.

How to Start a Short-Term Rental Business in Easthampton

Current Operating Environment

1. Understanding the Grace Period: Due to the suspension of enforcement, operators currently have a window to operate while new regulations are developed. However, this suspension is not a waiver of the city's rights and can be lifted at any time.

2. Prepare for New Regulations: The city has indicated that if a new ordinance passes, there will be a reasonable period for people to seek permits under the new regulations.

3. Compliance Preparation: Even during the suspension, the city continues to enforce public health, safety, and general welfare laws, including:

   • Fire safety inspections
   • Building code compliance
   • Health regulations
   • General welfare ordinances

Future Registration Requirements (Based on Proposed Ordinance)

According to the draft ordinance, operators will need to:

• Register annually with the City through the Building Department
• Register with the Massachusetts Department of Revenue
• Pay registration fees (to be set by the Licensing Board)
• Meet all building, fire, and safety code requirements

Required Documents, Permits, and Licenses

Current Requirements (During Suspension Period)

State Requirements:

• Massachusetts Department of Revenue registration for short-term rental tax collection
• Compliance with Massachusetts General Law c.64G (state short-term rental regulations)
• State Transient Occupancy Tax collection and remittance

Local Requirements (Expected Based on Proposed Ordinance):

Registration Documents:

• Property ownership documentation or legal interest proof
• Contact information for a local person responsible for operation
• Statement of whether owner has primary residence on the same lot
• Number of bedrooms to be rented
• Building and fire safety compliance certificates

Insurance Requirements:

• Liability insurance coverage (standard practice)

Compliance Documentation:

• Certificate of registration (must be posted in unit)
• Emergency contact information (must be posted)
• Occupancy evacuation routes (must be posted)
• Recycling and waste disposal instructions (must be posted)
• Pet leash requirements (must be posted)
• Noise regulation notices (must be posted)

Specific Regulations for Short-Term Rentals

City-Level Regulations (Proposed/Under Review)

Cap on Total Units:

• Maximum 50 dwelling units as of adoption date
• 10% annual increase cap starting January 1st each year

Property Owner Requirements:

• Must own property for minimum 365 days before registering
• Principal residence owners may register one dwelling unit on same parcel
• Principal residence owners may additionally register one unit on separate parcel
• Exception for properties operating before March 31st, 2025

Operational Limitations:

• Maximum rental period: 28 consecutive calendar days
• Maximum days per year: 200 days for non-owner-occupied properties
• Owner-occupied properties on same parcel: unlimited days (with owner present)
• Cannot rent individual rooms to separate parties simultaneously
• Cannot operate on properties with outstanding violations or city bills

Property Restrictions:

• Prohibited in corporation-owned properties
• LLC/Trust ownership permitted only if all members are natural persons
• Prohibited in affordable/income-restricted housing units
• Cannot operate units subject to long-term leases
• Cannot operate units owned by tenants

Safety and Compliance Requirements:

• Massachusetts Building Code compliance for transient lodging
• Massachusetts Comprehensive Fire Safety Code compliance
• Annual Fire Department inspections
• Specific fire safety equipment requirements (5-lb multi-purpose extinguishers, first aid kits, smoke/CO detectors)
• Proper house numbering per city ordinance
• Minimum one off-street parking space plus additional space per dwelling unit
• No signs advertising the short-term rental

Prohibited Activities:

• Events requiring special permits (amplified music, tents) during rental periods
• Operations on properties with outstanding violations

County and State-Level Regulations

Hampshire County: No specific county-level short-term rental regulations identified.

Massachusetts State Regulations:

• Massachusetts General Law c.64G governs short-term rentals
• State Transient Occupancy Tax applies (6.25% as of 2025)
• Local room occupancy tax may apply (Easthampton adopted 3% local tax in 2019)
• State building and fire code requirements for transient lodging
• Massachusetts Department of Revenue registration and reporting requirements

Contact Information for Local Authority

City of Easthampton - Primary Contacts

Main Municipal Office:

• Address: 50 Payson Avenue, Easthampton, MA 01027
• Phone: 413-529-1400
• Building Hours: Monday-Thursday, 7:30 AM - 5:00 PM

For Short-Term Rental Inquiries:

• Building Department: Contact through main number for Building Department
• Licensing Board: Through Building Department
• Health Department: Through main number
• Fire Department: Through main number

City Council - Ordinance Committee:

• Chair: Koni Denham
• Meeting Schedule: As announced (April 14, 2025 was most recent meeting)

Additional Contacts:

• Mayor Nicole LaChapelle: Through main municipal office
• Planning Board: Through main municipal office
• Zoning Board of Appeals: Through main municipal office

Compliance and Enforcement

Current Enforcement Status

Suspended: Zoning enforcement actions related to short-term rentals as of March 2025

Continuing Enforcement:

• Public health, safety, and welfare laws
• Building and fire code inspections
• General ordinance violations
• State tax collection requirements

Future Enforcement (Based on Proposed Ordinance)

Inspection Requirements:

• Fire Department annual inspections required
• Access must be provided to Health, Fire, and Building Departments
• Failure to comply may result in registration suspension

Violation Penalties:

• $100 for first offense
• $200 for second offense
• $300 for third offense and each subsequent offense
• Each day of violation constitutes a separate offense
• Three or more violations in 12 months may result in permanent registration revocation

Appeal Process:

• Violations may be appealed within 21 days per M.G.L. Ch. 40 § 21D

Important Timeline Considerations

• March 17, 2025: City suspended zoning enforcement on STRs
• March 31, 2025: Draft ordinance published
• April 14, 2025: City Council Ordinance Committee meeting on STR regulations
• May 1, 2025: Proposed effective date for new STR ordinance (if adopted)

Sources

1. City Suspends Zoning Enforcement on Short-Term Rentals for Review - Official City Announcement
2. Easthampton pauses short-term rental ordinance - Daily Hampshire Gazette Coverage
3. City Council Ordinance Committee Meeting Agenda - April 14, 2025 - Meeting Documents and Draft Ordinance

Note: The third-party blog source (Invastor.com) contains outdated and inaccurate information about special permits from the Planning Board, which does not align with current city actions or the proposed ordinance structure. Investors should rely on official city communications and the current suspension status.

This guide is based on information available as of March-April 2025. Regulations are actively being developed, and investors should verify current requirements with the city before proceeding.