Wareham, MA Short-Term Rental (STR) Investor Guide

Overview

Short-term rentals ARE ALLOWED in Wareham, MA. The primary mechanism for STRs is through the creation and operation of an Accessory Dwelling Unit (ADU), as detailed in the town's Zoning Bylaws (Article 860). Wareham's ADU bylaw explicitly permits STRs in owner-occupied ADUs under specific conditions. Please note that certain restrictions apply, particularly related to property ownership structure.

How to Start an STR Business in Wareham

1. Understand Zoning Eligibility: Confirm ADUs are permitted on your property. Wareham allows one ADU per lot as-of-right in most residential zoning districts (R-13, R-6, R-4, R-3, M, etc.) per Table 330. "ADUs-Multiple" require a Special Permit.
2. Design & Approve ADU Plan: Ensure your ADU plan adheres to dimensional and design standards:
   • Size Limit: Maximum gross floor area of 900 sq ft or 50% of the primary dwelling's gross floor area, whichever is smaller.
   • Footprint: If detached, the ADU footprint cannot exceed that of the principal dwelling.
   • Parking: One off-street space per ADU unless the lot is within 0.5 miles of a Commuter Rail or Bus Station.
   • Entrance: Must have a separate entrance meeting state building code egress requirements.
   • No Minimum Lot Size: Applies, but dimensional standards (Table 625) still govern setbacks, etc.
3. Obtain Permits: Secure necessary building permits and approvals through the Planning/Zoning Department and Building Department to construct or legalize the ADU.
4. Operational Requirements for STRs:
   • Registration: Obtain a Certificate of Registration from the Board of Health (mandatory for operating any rental or STR).
   • Tax Registration: Register with the Massachusetts Department of Revenue (DOR) for Room Occupancy Excise Tax purposes.
   • Insurance: Obtain appropriate liability insurance for the STR operation.
5. Tax Compliance: Calculate, collect, and remit the required taxes:
   • State: 5.7% Room Occupancy Excise Tax (as of July 1, 2019, per state law).
   • Local Option Tax: Wareham has adopted a local room tax. The maximum allowable rate is up to 6%. Sources indicate Wareham's rate is 6%. Investors must verify the current local rate with the town.

Required Documents, Permits, Licenses & Guidelines

• Zoning Bylaws & ADU Regulations: Wareham Zoning Bylaws, Article 860 (Accessory Dwelling Units). (Source: www.wareham.gov/DocumentCenter/View/5398/Wareham-Spring-Town-Meeting-Draft-ADU-Bylaw)
• Building Permits: Issued by the Building Department following plan review.
• Board of Health Rental/STR Certificate of Registration: Mandatory under Board of Health Regulations Section 13. Application details likely available from the Health Department. (Source: Wareham ADU Bylaw, Section 863.7)
• DOR Room Occupancy Excise Tax Registration: Register via MassTaxConnect.
• Liability Insurance Proof: Required for DOR registration and potentially for Board of Health registration.
• Proof of Ownership/Legal Entity Structure: Critical for compliance with ownership restrictions.
• Massachusetts State Building Code Requirements: Applies to ADU construction.
• State STR Requirements: Registration with the state, insurance (see below), and tax payment.

Specific Regulations for STRs in Wareham

1. Ownership Restrictions (Key): This is a critical limitation.
   • STRs in ADUs are PROHIBITED if the dwelling unit is owned by a Corporation, Real Estate Investment Trust (REIT), or similar entity pooling investor funds primarily for investment.
   • STRs in ADUs are PERMITTED only if the owner is an individual(s), LLC, Trust, or S-Corporation and every shareholder, partner, or member is a natural person. This must be established through documentation.
2. Zoning: STR operation occurs within the framework of the permitted ADU. Ensure the ADU itself is compliant with zoning (size, setbacks, parking).
3. Board of Health Oversight: Mandatory registration certificate required under Board of Health Regulations.
4. State Requirements (MA General Law c. 64G):
   • Registration: Required with the state (DOR).
   • Insurance: Operators must have $1,000,000 in liability insurance per dwelling unit. (Source: Standard State Requirement).
   • Excise Taxes:
     • State: 5.7% Room Occupancy Excise Tax (applied to the rent).
     • Local Option: Wareham has adopted a local room tax. The maximum rate allowed by the state is 6%. Sources suggest Wareham's rate is 6%. Verify the exact local rate with the town or DOR. (Sources: News Article & Management Site - Management site lists "up to 6%").
     • Community Impact Fee: Applies in some MA towns but is adopted locally. Wareham does not appear to have adopted the 3% Community Impact Fee based on available sources. (Source: WeNeedaVacation Table lists Wareham fee but no impact fee).
5. Duration: Definitions align with state law. STRs are defined as rentals for periods with a change in occupancy of less than 31 days. Rental of property for 14 days or less in a calendar year is NOT considered a short-term rental.
6. HOA/Condo Rules: Investors must review any association bylaws for additional restrictions (not provided in sources).

Contact Information

• Town Administrator's Office: 508-291-3100
• Planning Department/Zoning: Consult regarding ADU zoning compliance. Phone: 508-291-3100 ext. 3107 (verify current extension).
• Board of Health/Health Department: Mandatory rental certificate registration. Phone: 508-291-3100 ext. 3123 (verify current extension). Location: Town Hall.
• Building Department: Building permits and inspections. Phone: 508-291-3100 ext. 3130 (verify current extension).
• Massachusetts Department of Revenue (DOR): State tax registration (MassTaxConnect). Phone: 617-887-6367 or 1-800-392-6089.

Source Links

• Wareham ADU Bylaw (Zoning Bylaws Article 860): https://www.wareham.gov/DocumentCenter/View/5398/Wareham-Spring-Town-Meeting-Draft-ADU-Bylaw
• Wareham Week Article (State Lodging Tax Context): http://wareham.theweektoday.com/article/new-state-rental-law-has-wareham-selectmen-concerned/38958
• WeNeedaVacation STR Registration Fee Table (Includes Wareham Fee - Verification Recommended): https://www.weneedavacation.com/str/does-your-town-require-a-vacation-home-registration-fee/
• Summer Vacation Rental Management Overview (Mentions Tax Rates - Verification Recommended for Wareham specifics): https://www.gosummer.com/vacation-rental-management/wareham-massachusetts

Crucial Notes for Investors:

• Wareham's STR allowance is explicitly tied to its ADU regulations. ADU is the pathway.
• The entity ownership restriction is a major compliance hurdle. Ensure your ownership structure meets the "all natural persons" requirement for LLCs, Trusts, or S-Corps operating an ADU STR.
• Registration with the Board of Health is mandatory, separate from state and tax registrations.
• Verify the exact local option tax rate (currently reported as 6%) and the annual registration fee (reported as $100 + $25/unit) directly with the town.
• Massachusetts requires $1M in liability insurance for STRs.
• Municipal bylaws and regulations can change. Always confirm current requirements directly with town departments before making investment decisions.