Overview: Are Short-Term Rentals Allowed?

Yes, short-term rentals are explicitly allowed in Great Barrington, Massachusetts. The town passed comprehensive regulations at its Annual Town Meeting on June 6, 2022, establishing a framework for the operation of short-term rentals within the community. All short-term rental operators must comply with both state and local registration requirements to operate legally.

How to Start a Short-Term Rental Business in Great Barrington

Step-by-Step Process

1. Verify Property Eligibility

   • Confirm your property is not owned by a corporation (prohibited)
   • Ensure you don't already operate another STR in Great Barrington (one per owner limit)
   • Verify the property is not subject to affordability covenants or income restrictions

2. Complete State Registration

   • Register with the Massachusetts Executive Office of Housing and Economic Development
   • Register with the Massachusetts Department of Revenue
   • Obtain required state certificate of registration

3. Complete Local Registration

   • Access the town's online registration portal at townofgb.munirevs.com/log-in/
   • Submit all required documentation
   • Pay the $200 annual registration fee

4. Prepare the Property

   • Install functional smoke detectors and carbon monoxide alarms
   • Provide a properly maintained and charged multi-purpose fire extinguisher
   • Resolve any outstanding building, fire, health code, or town bylaw violations

5. Implement Operational Requirements

   • Post required information in conspicuous locations
   • Establish emergency contact procedures
   • Ensure compliance with noise restrictions (8 PM - 8 AM quiet hours)

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements

• Certificate of Registration with Executive Office of Housing and Economic Development
• Tax Registration with Massachusetts Department of Revenue
• Insurance Coverage of $1 million (unless hosting platform provides greater coverage)

Local Registration Documentation

• Property ownership verification
• LLC documentation (if applicable) showing all members are natural persons
• Contact information for owner/operator and emergency contacts
• Safety compliance verification
• Annual registration renewal (required each year)

Operational Guidelines

• Posted Information Requirements:

  • Owner's certificate of registration with the town
  • Short-term rental street address
  • Contact information for operator and emergency contacts
  • Instructions for recycling and waste disposal
  • Dog leashing requirements notice
  • Noise restriction notice (no excessive noise 8 PM - 8 AM)

• Safety Equipment Requirements:

  • Functional smoke detectors
  • Carbon monoxide alarms
  • Properly maintained and charged multi-purpose fire extinguisher
  • Posted locations of fire extinguishers, gas shut-off valves, fire exits, and fire alarms

Specific Regulations for Short-Term Rentals

Definition

A short-term rental is any rental of 30 days or less, excluding permitted hotels, motels, lodging houses, and tourist homes for transient guests.

Operational Limitations

Owner-Occupied Properties:

• Up to two bedrooms or an entire secondary unit on the same parcel may be rented
• Unlimited rental days per year when owner is residing on premises

Non-Owner-Occupied Properties:

• Maximum of 150 rental days per year
• Same bedroom/unit limitations apply

Owner Restrictions

• One Property Limit: Each owner may register only one dwelling unit as a short-term rental
• Corporate Prohibition: Corporations cannot own short-term rental properties
• LLC Requirements: Limited Liability Companies are permitted only when every member is a natural person
• No Tenant Operations: Tenants cannot operate short-term rentals in their rental units

Prohibited Activities

• Events with amplified music or tents requiring permits/licenses
• Advertising signs on the property
• Operation in properties with outstanding code violations
• Operation in affordable housing or income-restricted units

Inspection and Compliance

• Properties may be subject to inspection by Health Department, Fire Department, and/or Building Inspector
• Owners must provide access for safety inspections upon request with proper notice
• Failure to provide inspection access invalidates the license until inspection is completed

Tax Requirements

State Taxes

• 5.7% State Tax on rental income
• Collected by Massachusetts Department of Revenue

Local Option Taxes

• Communities may adopt up to 6% local option tax
• Great Barrington's specific local tax rate should be verified with town officials
• Collected by state and distributed back to the town quarterly

Community Impact Fee

• Up to 3% community impact fee may be adopted
• 35% must be directed to affordable housing or local infrastructure
• Requires separate vote from local option tax

Penalties and Enforcement

Fine Structure

• First Offense: $100
• Second Offense: $200
• Third and Subsequent Offenses: $300 per occurrence
• Each day of violation constitutes a separate offense

Registration Revocation

• Three or more violations within 12 months may result in registration revocation
• Permanent denial possible by Selectboard vote

Appeal Process

• Written violations may be appealed within 21 days
• Appeals processed according to M.G.L. Ch. 40 § 21D

Contact Information for Local Authority

Primary Contact

Selectboard Office - Town of Great Barrington

• Email: sbtm@townofgbma.gov
• Phone: 413-528-2900
• Physical Address: 334 Main Street, Great Barrington, MA 01230
• Office Hours: Monday - Friday, 8:30 AM - 4:00 PM

Town Hall General Information

• Main Phone: 413-528-1619
• Fax: 413-528-2290

Online Resources

• Official Town Website: www.townofgbma.gov/
• STR Registration Hub: www.townofgbma.gov/377/Short-Term-Rental-Registration-Hub
• Registration Portal: townofgb.munirevs.com/log-in/

Source Links and Additional Resources

Official Town Resources

• Short-Term Rental Registration Hub: www.townofgbma.gov/377/Short-Term-Rental-Registration-Hub
• Article 25 Short-Term Rental Bylaw: www.townofgbma.gov/378/Article-25-Short-Term-Rental-Bylaw-Summa
• Step-by-Step Registration Instructions: Available on town website

Regional Resources

• Berkshire Regional Planning Commission STR Toolkit: berkshireplanning.org/wp-content/uploads/2023/07/Toolkit-2023-Short-Term-Rentals-revised.pdf

State Resources

• Massachusetts STR Registry Search: Available through state Department of Revenue
• State Registration Portal: For Executive Office of Housing and Economic Development registration

Market Context and Investment Considerations

Current Market Status

• Approximately 234 active short-term rentals in the Great Barrington area (per AirDNA)
• Town estimates 120-140 rental offerings currently operating
• Only 60-65 properties were registered as of August 2023, indicating significant compliance gap

Investment Potential

• Growing market with strong tourism demand
• Berkshire County cultural attractions and natural beauty drive visitor demand
• Effective date of regulations: January 1, 2023
• Registration fee of $200 annually covers approximately $40,000 in annual monitoring costs

Compliance Importance

Town officials have issued "last call" warnings for unregistered operators and are actively pursuing enforcement actions. Investors should prioritize immediate compliance to avoid fines and potential business disruption.

This comprehensive regulatory framework balances the town's goals of enabling residents to earn additional income while protecting neighborhoods from excessive commercialization and maintaining public safety standards. Investors should maintain ongoing compliance monitoring as regulations may evolve based on community needs and market conditions.