New Legislation For Short Term Rental Hosts (Airbnb, VRBO, etc.) in Massachusetts
We live in an exciting time. New companies are forming to help solve various needs of families and individuals. Sometimes, governments can only determine how to regulate and manage new solutions once they’ve emerged. We’ve reached that point in Massachusetts for short-term rentals, such as Airbnb, VRBO, and others. Below is a quick synopsis on the law. Be sure to consult with an experienced attorney and an independent insurance to ensure you are in compliance.
What does this new law mean?
This new law sets requirements for short-term rental operators for registration, taxes, and insurance as it relates to the rental property.
Who needs to comply with the law?
Anyone who is operating (i.e. hosting) a short-term rental for less than 31 consecutive days in any Massachusetts property that they own. Whether you are an Airbnb superhost or you have a secondary home that you rent to friends and family for a week or so at a time, you need to comply with the law.
When does the law go into effect?
Signed by Massachusetts Governor Charlie Baker on December 31, 2018, the law goes into effect July 1, 2019 and applies to any bookings made on January 1, 2019. If you are starting to think about booking out your summer rental, it’s time to make sure your insurance policy is in order.
What does this mean for your homeowners insurance?
The new law is requiring that operators have a minimum of $1 million in liability insurance. A conversation with your insurance agent can help you determine the best way to ensure you have the appropriate level of coverage.
Some rental platforms do provide insurance solutions, such as Airbnb Host Protection Insurance and VRBO Liability Insurance. Operators, or hosts, would need to consult with the individual platforms to determine if they are within compliance of the law.
Interested in reviewing the entire law? You can access a full copy of the new law here: AN ACT REGULATING SHORT TERM RENTALS. Additionally, here is an articles from Boston.com - Renting an Airbnb in Massachusetts?, Agency Checklists - New Massachusetts Law Requires $1 Million Liability Limit for Short-term Rentals, and MassAgent.com - MA Homeowners Who Operate Short-Term Rentals Must Now Register, Tax & Insure their Properties on the new law.