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Offering a short-term or vacation rental in Salem

Reminder for property owners about local rules for short-term rentals
Posted on: March 15, 2022 - 1:17pm
str

With spring approaching, some Salem homeowners and property owners may be thinking about listing their home or a portion of it as a short-term or vacation rental on such platforms as Airbnb, VRBO, and the like.

In 2018, the City of Salem adopted rules regulating short term rentals (STRs). This update is offered as a reminder of those rules, in the event you are considering renting out your property on one of these platforms. You can find more details about STRs in Salem, as well as a “dynamic” FAQ, at www.salem.com/str.

  • You must live in the property you are planning to offer as a STR. With only a few small exceptions, STRs that are NOT owner-occupied are illegal in Salem. Allowable STRs are the dwelling you reside in (at least six months of the year) or one that is in the same building where you live. For example, if you live in your house and are going away for a week and want to rent it out, that is permitted. If you own a two-family house and live on one side and rent the other on a STR platform, that is permitted. If you own two 1-family houses in Salem and live in one but want to rent the other out on a short-term basis, that is not permitted.
  • You must register the STR with the City. In order to list a STR within the City of Sale, you must register the unit, first. There is a $50 fee to do so and registration is required annually. The registration form is available online here: https://www.harmari.com/client/reg-portal/register/salem. Failure to register your STR could result in fines or even in having your listing removed by STR platforms. The City uses a vendor, Harmari, that scans STR platforms weekly for Salem listings, then identifies unregistered units so the City can issue warning notices and, if necessary, tickets. Properties with excessive fines/ordinance violations within the past six months or that have unpaid City bills are prohibited from registering as a STR.
  • You must get a Certificate of Fitness from the Salem Health Department. Certificates of Fitness are required for all residential rental units in Salem, whether they are offered on a short-term or longer-term basis. The fee for a Certificate of Fitness is $50 and it is required annually for STRs. You can apply for a Certificate of Fitness here: https://salemma.viewpointcloud.com/categories/1085. After you apply, you must call the Health Department at 978-741-1800 to schedule the required in-person inspection. No Certificate can be issued without an inspection first. The Certificate of Fitness ensures that the unit being offered for rent complies with state and City codes and regulations and is safe for habitation.
  • Per Massachusetts state law, STR operators must collect room excise taxes from customers and pay it to the Commonwealth. This is not a City rule or function, however it’s important for STR operators to know about it, to avoid potential tax liabilities and violations with the Massachusetts Department of Revenue (DOR). You can find more details about this requirement and a link to register with DOR here: https://www.mass.gov/service-details/room-occupancy-excise-tax.