Short-term rentals in Cambridge, explained properly.

Section 4.67 requires an operator who is not the property owner to provide written evidence that the owner and the condominium association, if applicable, has consented to the short-term rental use of the property, and Section 4.62 defines the operator as the owner or the primary leaseholder with that written permission. The ISD guide goes further than this section's text: it lists written approval from the condominium association and/or building owner among the supporting documents, tells tenants to supply a copy of the lease or rental agreement, and says the ordinance does not override any lease, condominium bylaws or other regulations that bind a tenant, and that the City does not enforce private agreements. The City's page lists a Statement of Responsibility and an Affidavit of Approval of the Property Owner as documents. The guide's wording differs from the ordinance on whether owner-operators need condominium approval; this page follows the ordinance. State law also says it confers no right to rent where an HOA, lease or other agreement prohibits it (see the Massachusetts section).

Section 4.64(12) of the Zoning Ordinance prohibits commercial meetings and uses in short-term rentals.

An owner-adjacent short-term rental may be rented only as a whole unit to one party of short-term renters at any one time and not rented as separate bedrooms to separate parties (Section 4.64(8)). An operator-occupied rental during which the operator is away from the dwelling unit for more than seven (7) consecutive days may be rented only as a whole unit to one party at any one time and not as separate bedrooms to separate parties (Section 4.64(9)).

Section 4.64(7) requires short-term rental operators to maintain liability insurance appropriate to cover the short-term rental use. The ISD guide (version dated November 9, 2017) lists as a supporting document proof of liability insurance in an amount approved by the Commissioner of Inspectional Services, or proof that coverage in an equal or higher amount is provided by all hosting platforms used. State law sets its own minimum insurance amount (see the Massachusetts section).

Section 4.65 says this information shall be provided to all short-term renters and posted in all owner-adjacent rentals in a manner ISD determines: instructions for disposal of waste under the City's recycling and composting programs; an emergency-exit diagram in all bedrooms used for owner-adjacent rentals and on all egresses from the dwelling unit; contact information for the operator, or when the operator is not present, for a locally available contact designated to respond to all emergencies and problems during the rental, whether from renters, neighbors or municipal authorities; and the certificate of registration.

Section 4.65(2) requires the operator of an owner-adjacent short-term rental to keep accurate books and records, make them available upon request of ISD, and keep them for a period of three years.

The ISD guide (version dated November 9, 2017) says all short-term renters are subject to the City of Cambridge parking regulations and that the operator is responsible for informing guests of them.

Section 4.64(6) says operators of short-term rentals shall remit to the appropriate body all fees and taxes as required by the City and/or State authorities. The City's registration page says State law requires registration of short-term rentals and payment of State excise tax. We haven't reviewed Cambridge's acceptance of the local room occupancy excise or the community impact fee that State law allows cities to adopt, so this page gives no City rate. Section 3B of chapter 64G names Cambridge among the cities where the convention center financing fee on short-term rental occupancies is split between the General Fund and the city, and section 14A of the 2018 act delays that section until the Commonwealth has paid off certain bonds; we haven't confirmed the fee's rate or whether it applies yet. This page does not total City and State taxes.

The ISD Short-Term Rental Guide, a City publication versioned 11/09/2017, says the fee to obtain a certificate of registration is $500, payable when the application is filed, or on a payment plan of $100 a year over five (5) years with the first $100 due when the application is filed and the certificate issued subject to the annual payment. It says failure to pay will result in immediate revocation of the certificate. We haven't reviewed a dated fee schedule for the current fee yet.

The ISD guide says code violations or any violations of the Short-Term Rental Ordinance will be subject to fines of up to $300/day, and that ISD investigates complaints about occupancy conditions or other violations. Complaints about a specific property can be made on the SeeClickFix reporting website, per the City's page. A pending proposal would write a $300 per violation per day fine into the ordinance itself (see Recent and pending changes).

Chapter 64G section 3 imposes an excise of 5 per cent of the total amount of rent for each occupancy of a short-term rental, with no excise if the total rent is less than $15 per day, payable by the operator to the commissioner of revenue when the operator files the return under chapter 62C section 16. No excises or fees under the chapter apply if the operator transfers the short-term rental for not more than 14 days in a calendar year, but only if the operator first registered with the commissioner and filed a signed declaration (required annually) of the intent to do so; an operator who transfers it for 15 days or more, or who does not register and file the declaration, owes the excise and fees, including on the first 14 days. Section 3A lets a city or town that accepts it by vote impose a local excise of not more than 6 per cent of the rent (Boston, 6.5 per cent), which the operator pays to the commissioner together with the State excise. Section 3D lets a city or town that accepted section 3A impose, by separate vote, a community impact fee of not more than 3 per cent of the rent on professionally managed units, and by a further vote on units in a two- or three-family dwelling that includes the operator's primary residence, with at least 35 per cent of the proceeds dedicated to affordable housing or local infrastructure. Section 3C adds a 2.75 per cent excise in municipalities that belong to the Cape Cod and Islands Water Protection Fund. Under section 14 of the 2018 act, sections 3, 3A, 3C and 3D apply to occupancies that start on or after July 1, 2019 under contracts entered on or after January 1, 2019. Which cities and towns have accepted the local options is shown on each place's page where official sources show it. This page does not combine these rates into one total.

Section 6 of chapter 64G, as enacted by chapter 337 of the Acts of 2018 (approved December 28, 2018), says a person shall not operate a bed and breakfast establishment, hotel, lodging house, short-term rental or motel unless a certificate of registration has been issued under section 67 of chapter 62C. The chapter defines a short-term rental as an owner-occupied, tenant-occupied or non-owner occupied property, including an apartment, house, cottage or condominium, where at least one room or unit is rented to an occupant and all accommodations are reserved in advance, and counts occupancy of a room in a short-term rental normally used for sleeping and living purposes for not more than 31 consecutive calendar days. An operator who transfers the rental for not more than 14 days in a calendar year must still register and file an annual declaration to qualify for the excise exemption. An intermediary that collects rent for an operator must obtain the certificate in the operator's name. A city or town may accept the State certificate in place of a local license or registration. We haven't reviewed the text of chapter 62C section 67 yet.

Chapter 175 section 4F(b) requires an operator to maintain liability insurance of not less than $1,000,000 to cover each short-term rental, unless the rental is offered through a hosting platform that maintains equal or greater coverage. The coverage must defend and indemnify the operator and any tenants or owners in the building for bodily injury and property damage arising from the short-term rental. A hosting platform must tell the operator, before the operator offers a rental through it, that standard homeowners or renters insurance may not cover third-party property damage or bodily injury. An operator who intends to run a short-term rental must notify any insurer that writes a homeowners or renters policy for the property.

Section 14 of chapter 64G, as enacted by chapter 337 of the Acts of 2018, lets a city or town by ordinance or by-law regulate operators registered with the Department of Revenue and impose penalties. Among the listed powers, it may regulate the existence or location of operators, the class of operators, the number of local licenses or permits and the number of days a person may operate and rent out an accommodation in a calendar year; require licensing or registration (accepting the State certificate in its place, or issuing a provisional license for temporary or seasonal use); require operators to show there is no outstanding building, fire, health or zoning enforcement; require health and safety inspections at the operator's cost; set a civil penalty (telling the commissioner of revenue when it suspends or ends an operator's right to operate); and set a reasonable fee for local administration. Operators must also post inside the unit the location of fire extinguishers, gas shut-off valves, fire exits and fire alarms. A city or town may publish a public registry of registered short-term rentals. The sources reviewed are the 2018 act as passed and individual codified sections; we haven't reviewed the current codified text of section 14 or any Massachusetts agency pages.

Section 15 of chapter 64G, as enacted by chapter 337 of the Acts of 2018, says nothing in the chapter confers a right to lease, sublease or otherwise offer a residential unit as a short-term rental where that use is prohibited by a homeowner's association agreement or requirements, a rental agreement or any other restriction, covenant, requirement or enforceable agreement. Section 16 adds that for residential units subject to rent control, operators of short-term rentals shall charge not more than the prorated maximum amount allowed.

Section 13(a) of chapter 64G, as enacted by chapter 337 of the Acts of 2018, lets an operator elect, by written agreement, to allow an intermediary to collect rent or facilitate its collection or payment. The chapter defines an intermediary to include a hosting platform and an operator's agent. An intermediary with such an agreement must apply for and obtain a certificate of registration from the commissioner on the operator's behalf, assess, collect, report and remit the excise, remit any community impact fee to the municipality, keep records, and make sure the operator is registered before allowing the operator to list a rental through it. The certificate must be in the name of the individual operator, not the intermediary. Check with the platform and the Department of Revenue to confirm whether a platform collects the excise for you.