Overview: Are Short-Term Rentals Allowed in Salem, MA?

Short-term rentals (STRs) are explicitly regulated in Salem, MA. Key restrictions apply:

1. Owner-Occupied Units: STRs are permitted only if the unit is the host’s primary residence.
2. New Non-Owner-Occupied Units: New non-owner-occupied STRs are strictly prohibited (effective July 16, 2018).
3. Existing Non-Owner-Occupied Units: A special permit from the Zoning Board of Appeals (ZBA) may be available for units actively operating as non-owner-occupied STRs before July 16, 2018 (application deadline was June 15, 2019). This is likely a closed pathway now.
4. Compliance: All STRs require annual registration, a Certificate of Fitness, and compliance with state tax laws. Zoning restrictions limit STRs to certain neighborhoods.

How to Start a Short-Term Rental Business in Salem

1. Verify Eligibility: Confirm your property qualifies as an owner-occupied STR (your primary residence) or determine if you qualify for a legacy ZBA special permit (highly unlikely now).
2. Register Annually:
   • Pay the $50 annual registration fee.
   • Apply Online: Combined STR Registration & Certificate of Fitness Application (Note: This includes the application for both requirements).
3. Obtain Certificate of Fitness:
   • This is an annual inspection by the Salem Health Department to ensure compliance with state/local sanitary codes and habitability.
   • Fee: $50 (covers inspection and certificate).
   • Schedule: After completing the online application, call the Health Department at 978-741-1800 to schedule your mandatory inspection. You cannot receive the certificate without the inspection.
4. Register for State Taxes:
   • Room Occupancy Excise Tax: Register with the Massachusetts Department of Revenue (Mass DOR).
   • Contact: Call Mass DOR at 800-392-6089 or visit the Room Occupancy Excise Tax Guide. Hosts are legally required to register.
   • Note: Platforms like Airbnb typically collect and remit this tax on behalf of hosts.
5. Pay Non-Owner-Occupied Trash Fee (if applicable): If your STR unit is not your primary residence (legacy ZBA permit holders), you must register and pay the non-owner-occupied trash fee.
6. Comply with Additional Rules: Adhere to occupancy limits (max 3 unrelated persons), listing requirements, and all other applicable city ordinances.

Required Documents, Permits, Licenses, and Guidelines

• Salem STR Registration: Annual requirement ($50 fee).
• Certificate of Fitness: Annual inspection and certificate ($50 fee) issued by the Salem Health Department.
• Special Permit (Legacy Only): Potentially required from the ZBA for non-owner-occupied STRs operating before July 16, 2018. This process is likely closed (deadline was 2019).
• State Tax Registration: Registration with Mass DOR for Room Occupancy Excise Tax (phone: 800-392-6089).
• Compliance with City Code: Adherence to the Salem Code of Ordinances - Chapter 15: Short-Term Rentals (definitions, eligibility, listing requirements, penalties).
• State Sanitary Codes & Fitness Standards: Compliance verified during the Certificate of Fitness inspection.
• Listing Information: Must include required information per Salem ordinance (provided to guests and in online listings).

Specific Regulations (City, County, State)

City of Salem Regulations:

• Owner-Occupancy Requirement: STRs must be the host's primary residence.
• Prohibition on New Non-Owner-Occupied Units: No new licenses issued since July 16, 2018.
• Zoning Restrictions: Use is restricted to specific neighborhoods/zoning districts per city ordinance.
• Certificate of Fitness: Mandatory annual inspection.
• Annual Registration: Mandatory with $50 fee.
• Occupancy Limit: Maximum of 3 unrelated persons per dwelling unit.
• Fines:
  • Unregistered STR: $100 fine.
  • Failure to Maintain Certificate of Fitness: $50 per day until compliant.
  • Violation of Other Ordinances: Subject to penalties outlined in the city code.
• Legacy Non-Owner-Occupied Permit Holders: Must hold a valid ZBA special permit and pay the non-owner-occupied trash fee. (This pathway is largely closed).

Essex County (MA): No specific county-level STR regulations identified. Salem city rules apply.

Commonwealth of Massachusetts Regulations:

• Room Occupancy Excise Tax: State law (M.G.L. c. 64G) imposes a tax on short-term rentals. Hosts must register with Mass DOR and collect/remit the tax (often done by platforms). The state requires certain intermediaries to collect/remit.
  • Contact: Mass DOR - Room Occupancy Excise Tax, Phone: 800-392-6089.
  • Legal Reference: M.G.L. Chapter 64G, Section 3.

Note: The City uses a dynamic FAQ to guide potential hosts through specific regulatory requirements based on their situation.

Contact Information for Local Authority

• City Hall (General Contact):
  • Address: 93 Washington Street, Salem, MA 01970
  • Phone: 978-745-9595
  • Hours: Mon-Wed 8am-4pm, Thu 8am-7pm, Fri 8am-12pm
• Salem Health Department (Certificate of Fitness & STR Inspection/Registration):
  • Phone: 978-741-1800 (Primary contact for questions and scheduling inspections)
  • Use the online portal for applications.
• Salem Legal Department (STR Regulations & Zoning Questions):
  • Phone: 978-619-5638
• Massachusetts Department of Revenue (Room Occupancy Excise Tax Registration):
  • Phone: 800-392-6089
  • Website: Mass DOR - Room Occupancy Excise Tax

Links to Source Pages

1. Salem City STR Main Page: Short-Term Rentals - City of Salem
2. Salem STR Registration & Certificate of Fitness Application: Combined Application Portal
3. Salem Code of Ordinances - Chapter 15 (Short-Term Rentals): Salem STR Ordinance
4. Salem Health Dept - Residential Rental Inspection (STR) Info: Rental Inspection Requirements
5. Salem STR FAQ: Dynamic STR FAQ
6. Airbnb Summary for Salem: Salem, MA - Airbnb Help
7. Mass DOR Room Occupancy Excise Tax Guide: Mass DOR Tax Guide
8. MA General Law Chapter 64G Section 3: State STR Tax Law

Important Note for Investors: The prohibition on new non-owner-occupied STRs significantly restricts the traditional STR investment model in Salem. Focus exclusively on properties where you can legitimately claim primary residency or confirm the existence of a valid, transferable ZBA special permit (highly improbable for new purchases). Strict compliance with owner-occupancy, registration, inspection, and tax requirements is mandatory. Consult with local legal counsel specializing in zoning and property use before investing.