Overview: Are Short-Term Rentals Allowed?

Yes, short-term rentals (STRs) are explicitly allowed in Manchester-by-the-Sea (MBTS), MA, provided the property owner obtains an annual license from the Select Board (now called Select Board) and complies with all applicable regulations. The town adopted a specific bylaw governing "Short Term Paying Guest in Homes" (Article X, Section 20C) effective January 1, 2017. This bylaw mandates licensing as a prerequisite for operation. Licensing is designed to ensure guest safety, neighborhood tranquility, and transparency.

How to Start a Short-Term Rental Business in MBTS

1. Ensure Owner-Occupancy: STRs are only permitted in owner-occupied residential premises in MBTS. Verify your property meets this requirement before proceeding.
2. Review Zoning Compliance: Confirm your property’s use aligns with the Town Zoning By-law. STRs are allowed in owner-occupied dwellings consistent with zoning.
3. Prepare Application: Complete the Select Board's Short-Term Guest Rental Home License Application. Include:
   • Property location.
   • Number of rooms to be rented.
   • Whether meals will be served on-site.
   • Name and contact details of a local authorized agent.
   • Declaration of compliance with Board of Health and Fire Department safety measures.
4. Obtain Safety Compliance Documentation:
   • Board of Health: Ensure full compliance (e.g., safe sanitation, water supply).
   • Fire Department: Verify installation and functionality of required smoke alarms and carbon monoxide (CO) monitors.
5. Submit Application & Pay Fee: Submit the completed application to the Select Board. Pay the annual license fee (currently $100, subject to annual review).
6. Attend Select Board Meeting: The application will be reviewed at a public Select Board meeting. Decisions are rendered within 3 weeks of submittal.
7. Obtain License: If approved, the annual license is valid for the calendar year (expires December 31).
8. Maintain Operations:
   • Renew the license annually before expiration.
   • Maintain an up-to-date guest registry (name & nights stayed). Provide access upon request.
   • Ensure ongoing compliance with safety regulations and all license conditions.
   • Name a local authorized agent to act in the owner's absence.
   • Adhere to any additional guidelines promulgated by the Select Board.

Required Documents, Permits, Licenses, and Guidelines

• Primary License: Short-Term Guest Rental Home License from the Select Board (MBTS).
• Application Form: Official form approved by the Select Board (available via town links).
• Supporting Documentation:
  • Proof of Board of Health compliance.
  • Proof of Fire Department safety compliance (smoke alarms/CO monitors).
  • Name and contact details of the designated Local Authorized Agent.
• Safety Equipment: Operational smoke alarms and CO monitors (verified by Fire Dept).
• Guest Registry: Must be maintained and accessible to enforcement agents.
• Registration: Owners/operators must register with the Massachusetts Department of Revenue (DOR) and obtain a Certificate of Registration for State Tax Purposes (State requirement).
• Insurance: State law requires a minimum of $1 million liability insurance unless the hosting platform provides equal or greater coverage.
• Safety Information Posting: State law requires owners to post information regarding the location of fire extinguishers, gas shut-off valves, fire exits, and fire alarms in a conspicuous location within the unit.

Specific Regulations for Short-Term Rentals

• City/Town Level (Manchester-by-the-Sea):
  • Owner-Occupancy: Mandatory.
  • Licensing: Annual license required from the Select Board.
  • Definition of Short-Term: Guests staying less than 6 consecutive nights.
  • Zoning Compliance: Must be consistent with the Town Zoning By-law.
  • Local Agent: Required.
  • Guest Registry: Mandatory.
  • Safety Compliance: Fire alarms and CO monitors required and verified. Compliance with Board of Health regulations is mandatory.
  • Application Fee: Set annually by the Select Board (currently $100).
  • License Term: Calendar year (Jan 1 - Dec 31).
  • Renewal: Required annually.
  • Inspection/Enforcement: Enforced by designated Enforcement Agents under Town Administrator supervision.
  • Violation Penalties: $300 fine per day per offense. License subject to modification, suspension, or revocation after hearing.
  • Effective Date: Bylaw in effect since January 1, 2017.
• County Level: No county-specific STR regulations were found in the provided sources. Compliance is governed by Town and State rules.
• State Level (Massachusetts):
  • Registration: Mandatory registration with the MA DOR. Obtain a Certificate of Registration for State Tax Purpses.
  • Taxation:
    • State Room Occupancy Excise Tax: 5.7% of the rent charged to guests. Usually collected and remitted by the platform (e.g., Airbnb) or by the operator if not.
    • Local Room Occupancy Excise Tax: MBTS has not adopted this tax as per the provided sources. Always verify current status with the Town or MA DOR.
    • Community Impact Fee (CIF): MBTS has not adopted this fee as per the provided sources. Always verify current status with the Town or MA DOR.
  • Safety & Insurance:
    • Insurance: Minimum $1 million liability insurance required (unless platform provides equal/greater coverage).
    • Safety Posting: Mandatory posting of key safety information.
    • Building/Sanitary Codes: Must comply with state building codes and Board of Health regulations (Title 5 septic compliance, minimum housing standards, pool regulations if applicable).
  • Tax Collection/Remittance: Required for applicable state/local taxes (primarily the 5.7% state tax).

Contact Information for Local Authority

• Authority: Select Board (formerly Board of Selectmen) - Manchester-by-the-Sea
• Physical Address: Town Hall, 10 Central Street, Manchester-by-the-Sea, MA 01944-1399
• Phone: (978) 526-2000
• Website: Manchester-by-the-Sea - Select Board & License and Permit Applications
• Key Department Contacts:
  • Town Administrator: Supervises enforcement. Contact via Select Board page or Town Hall.
  • Enforcement Agent: Designated by Select Board. Contact through the Town Administrator or Select Board Office for enforcement questions.
  • Fire Department: Verify safety compliance (smoke alarms/CO monitors).
    • Non-Emergency: (978) 526-1414
  • Board of Health: Verify sanitary compliance.
    • Phone: (978) 526-2010 ext. 229 (verify current extension)
    • Email: [email protected] (verify via town directory)
  • Building Inspector/Zoning Enforcement Officer: For zoning/building code questions.
    • Phone: (978) 526-2010 ext. 235 (verify current extension)

Source Links

• Manchester-by-the-Sea Short-Term Paying Guest Bylaw: Town Bylaw Document
• Manchester-by-the-Sea - Bylaws and Regulations (including STR Bylaw Link): Town Bylaws Page
• Massachusetts DOR - Short-Term Rental Registration: State Registration Portal (Referenced in FRCOG document)
• FRCOG Short-Term Residential Rentals Workshop Materials: FRCOG STR Guide (Statewide regulations context)
• Berkshire Regional Planning Commission - Short-Term Rental Toolkit: BRPC STR Toolkit (Statewide regulations context, example bylaws)

Important Note: Always verify current regulations and contact information directly with the Town of Manchester-by-the-Sea Select Board Office and relevant Town Departments before commencing operations. Regulations and contact details can change. The Local Room Occupancy Excise Tax and Community Impact Fee status for MBTS should be reconfirmed as not adopted based on current sources.