Massachusetts STR Owners Push Back on Cease-and-Desist Notices

Key Takeaways

Only 13 of an estimated 40 qualifying short-term rentals had registered in Easthampton, Massachusetts as of early August
Some owners pushed back after cease-and-desist notices were posted before the city’s July 1 registration deadline
Hosts also face new inspection requirements and potentially thousands of dollars in fire-safety upgrades

A new short-term rental ordinance is off to a bumpy start in one Massachusetts city.

Easthampton, a small city in western Massachusetts near Northampton, had registered just 13 short-term rentals as of early August, even though officials estimate roughly 40 properties qualify under the new rules.

The city allows up to 50 short-term rentals, so the issue isn’t a lack of available permits.

Instead, some owners say the rollout, new safety requirements and added costs have made the registration process more difficult than expected.

Part of the frustration started before the ordinance’s July 1 registration deadline.

Cease-and-desist notices were posted on the doors of dozens of Airbnb and Vrbo properties about a week before the deadline, according to the Daily Hampshire Gazette.

The notices came as a surprise to many of these hosts.

“If you were renting a place and you saw a cease-and-desist letter, what are you going to think?” short-term rental owner John Losito told the outlet. “He could’ve sent an email.”

“He put them on the doors of our rentals so if we weren’t home to welcome our guests (they would have seen them),” Losito continued.

Public Health Director Ryan Griffin, who posted the notices, said the goal was to get remaining STR owners registered.

He later acknowledged the communication could have been handled better, while Mayor Salem Derby said officials discussed the concerns internally after owners complained.

“Our goal has been to work collaboratively with STR [short-term rental] operators who have already been operating to bring them into compliance within a reasonable timeframe. We want to avoid unnecessarily disrupting existing STRs while also ensuring the ordinance is implemented consistently, enforced appropriately and that public health and safety requirements are met,” said Griffin.

Several STR owners shared disappointed reactions after the new ordinance was announced.

“I wish somebody would look into how these laws are applied to us but nobody else,” said Pierson, without citing specific comparisons. “Instead, Easthampton — little Easthampton — has the most restrictive short-term rental policy in the state,” said Nancy Pierson, a STR host who lives in California but owns a rental in Easthampton after previously living in the area.

Pierson says she’s going to decide within the next 12 months whether she wants to even continue operating her rental.

New safety requirements add to the cost for hosts

The ordinance, approved by the City Council in March, does more than require owners to register.

Short-term rentals must also pass annual inspections and have either a monitored smoke and carbon monoxide alarm system or a full sprinkler system. The city also charges a $225 annual inspection fee.

Some owners told the Gazette they spent roughly $1,000 to $2,200 on alarm systems alone.

Those added costs have become one of the bigger sticking points for hosts trying to decide whether continuing to operate still makes sense.

Owners aren’t all on the same side of the debate.

One local host who worked with the city’s Ordinance Committee for about a year described the final rules as a workable compromise.

Another owner, who lives in California, said she believes Easthampton now has some of the toughest short-term rental rules in Massachusetts. She said she plans to wait a year before deciding whether to keep renting her property.

The city’s new five-guest occupancy cap is also affecting that property, cutting its previous guest capacity roughly in half.

City expects more STR owners to register

Despite the slow start, Griffin expects the registration numbers to climb.

He said the city could see a significant increase in registered properties by early September as more owners work through the new requirements.

For now, though, Easthampton has registered less than half of the short-term rentals officials believe are eligible to operate under the new system.

The next few weeks should give the city a much clearer picture of whether the gap is simply part of a slow rollout or whether some hosts decide the new costs and requirements aren’t worth it.