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HomeMy WebLinkAboutSTR Memo 7.1.2026 367 Main Street, Hyannis, MA 02601 (p) 508-862-4678 MEMORANDUM Date: July 1, 2026 To: Town Council Zoning and Regulatory Subcommittee From: Planning & Development Staff Re: Short-Term Rental Regulations One topic that has been identified by the Town Council Zoning and Regulatory Subcommittee as a priority is exploring the development of short-term rental regulations. In examining short-term rental regulations from the region and beyond, there are various components that different communities have prioritized. In order to offer additional guidance on this topic and to begin to develop draft regulations, town staff are looking for guidance from this committee as to which aspects of potential regulations staff should focus on. Ban of Corporate Ownership Boston and Nantucket have both instituted laws to restrict corporate or investor -owned short- term rental regulations from operating. Specifically, Nantucket’s town code bans short -term rentals in “dwelling units owned by a corporation, partnership, real estate investment trust, or any similar entity”. However, challenges have arisen from the enforcement of these laws. On Nantucket Limited Liability Corporations (LLCs) have been exempted from the law in order to protect homeowners who have their houses placed in an LLC. This exemption has allowed many co rporate owners to continue to operate in spite of the ban, as reported in a recent article of the Nantucket Current. If the town wishes to explore these regulations further examination must be conducted on the effectiveness of current regulations aimed to address this issue, and any unintended consequences that could result from enacting stricter measures intended to address loopholes. Owner Occupancy Requirement In some communities, short-term rentals are only permitted in dwellings that are the host’s primary residence. In Boston, units must be owner-occupied and qualify for a residential exemption (owner lives on the property for at least 9 months) to be operated as a short-term rental. Furthermore, in New York, operators are required to be present on the property during the course of the rental. Owner occupancy requirements are intended to deter the operation of investor-owned short- term rentals, while preserving the right of homeowners to rent out their property for a portion of the year. These requirements also have the effect of prohibiting sho rt-term rental operators from operating multiple units. Town of Barnstable Department of Planning & Development https://www.townofbarnstable.us/Departments/planninganddevelopment/ 367 Main Street, Hyannis, MA 02601 (p) 508-862-4678 Limit on Number of Days Short-Term Rental Can Operate Some municipalities have implemented regulations that would place limits on the total number of days in a year one unit can be rented. Limits across the country range from a cap of 90 total days per year for rental, to 180 days per year. In Boston, a cap of 120 total days has been implemented. Glocester, MA offers a sliding scale for a total number of days rented: there is no limit on the number of days if the owner of the unit lives in it full-time, a 180-day limit for owners who live in the unit part-time, and 120-day limit if the owner does not live in the unit. Minimum Stay In many short-term rental regulations across the region, a minimum duration of stay is incorporated. Locally the communities of Tisbury and Yarmouth require a minimum of two-night stay in short-term rentals. This regulation aims to mitigate the number of turnovers for rentals. Parking Requirements Short-term rental regulations can also dictate minimum parking requirements for short -term rentals. In Yarmouth, a short-term rental regulation provision reads: “Adequate on-site parking shall be provided, with a minimum of one space/bedroom. There shall be no parking on lawns, no overnight street parking, and no street parking that impedes traffic or traffic safety at any time.” The regulations are intended to mitigate negative impacts in neighborhoods that could be generated from an excess number of vehicles associated with a short-term rental. Limits on Number of Units One Owner Can Operate Some communities have set limits on the number of short-term rental units one owner can register with the town. In Yarmouth, proposed short-term rental regulations includes a limit of one short-term rental unit per owner. Limits on Occupancy The limit on the number of people that can stay in a short-term rental is most often regulated by Board of Health regulations, as opposed to via zoning. State health code dictates that a maximum of two people per bedroom, plus two, occupy a dwelling. In Charleston, SC there is a limit of four unrelated people who can stay in a unit. It should be noted that there may be challenges associated with enforcing occupancy limits. Ban on Short-Term Rentals In Barcelona, Spain the city has announced a total ban of short-term rentals by the year 2028. This will be accomplished through not issuing any new short -term rental licenses and not renewing existing licenses (which are expected to expire by 2028). Given Barnstable’s reliance on the tourism economy and lack of hotels compared to cities like Barcelona, a total ban would likely incur negative economic development impacts.