Navigating Short-Term Rentals

Navigating Short-Term Rentals

Navigating Short-Term Rentals on Nantucket

If you are renting your Nantucket home on a short-term basis, there are several State and Town requirements that must be completed before your property can be offered for rent. Lee Real Estate is here to help guide you through the process and ensure that the necessary documentation is in place.

Step 1: Register Your Home with the Commonwealth of Massachusetts

If you plan to rent your home for more than 14 nights per calendar year, you must obtain a Massachusetts Room Occupancy Certificate. This certificate is obtained once and does not need to be renewed annually.

Once you have received your certificate:

  • Provide Lee Real Estate with a PDF copy of the certificate.
  • A copy of the certificate must be prominently displayed at the rental property at all times.

Renting for 14 Nights or Less

If you plan to rent your property for 14 nights or fewer during a calendar year, you may qualify for the Massachusetts 14-Day Tax Exemption.

The exemption must be registered annually with both the Commonwealth of Massachusetts by January 15 of the applicable year.

Please see below:

Claiming or Renewing the 14-Day Exemption

If you qualify for the 14-day exemption, the exemption must be renewed from January 1 - January 15 of each calendar year.

To renew your exemption through MassTaxConnect:

  1. Log in to MassTaxConnect.
  2. Select your Room Occupancy Consolidated Account.
  3. Select Property List.
  4. Select Manage next to the property that qualifies for the exemption.
  5. Select Renew, then Next.
  6. Select Submit to claim the exemption.

Please provide Lee Real Estate with confirmation of your exemption once completed.

Important: If you claim the 14-day exemption but ultimately rent the property for more than 14 days during the calendar year, you will be responsible for the taxes that should have been collected, including taxes applicable to the first 14 rental days.

Step 2: Obtain Your Nantucket Short-Term Rental Permit

Nantucket homeowners who rent their homes for 32 consecutive days or fewer are generally required to register the property with the Nantucket Board of Health and obtain a Short-Term Rental Permit.

The current STR permit fee is $250 per dwelling, and the permit must be renewed annually. If a home and cottage are rented as separate dwellings, each requires its own permit.

Once your permit has been issued:

  • Provide Lee Real Estate with a PDF copy of the permit.
  • Keep your permit and other required documentation current and available at the property.

The Town of Nantucket has transitioned to a new Short-Term Rental Registration application system. The new system launched on October 1, 2026. Owners and operators should use the new system to submit their annual renewal applications for the 2026–2027 certificate period. You can access the new system here: https://nantucketma.portal.opengov.com/categories/1087/record-types/1006489

As a reminder, Short-Term Rental Certificates must be renewed annually by November 1.

Questions regarding the Town's Short-Term Rental permitting process should be directed to the Nantucket Health Department.

Frequently Asked Questions

What is considered a short-term rental on Nantucket?

A short-term rental generally refers to the rental of a dwelling or portion of a dwelling for 32 consecutive days or fewer. Certain exemptions apply, including properties rented for 14 nights or fewer in a calendar year.

What happens if I do not comply with Nantucket's short-term rental requirements?

Renting or advertising a property without the required certificates or permits may result in enforcement action under Town regulations. Lee Real Estate can only rent properties that meet the applicable State and Town requirements.

What insurance is required for short-term rentals?

Nantucket short-term rental owners are required to maintain at least $1 million in liability insurance. Homeowners should confirm that their insurance coverage meets the applicable requirements and adequately protects their property and guests. You must submit your insurance information in order to get the Nantucket Short-Term Rental Permit.

What is the Community Impact Fee?

For certain properties, Massachusetts requires a 3% Community Impact Fee on rentals of fewer than 32 nights. When applicable, this fee is collected from the tenant and appears as a separate line item on the rental lease.

How do I renew my Nantucket Short-Term Rental Permit?

The Town of Nantucket has transitioned to a new online Short-Term Rental application system. Owners should use the Town's current Short-Term Rental portal for permit applications and renewals. You can access the new system here: https://nantucketma.portal.opengov.com/categories/1087/record-types/1006489

Please note: Short-term rental regulations and requirements may change. Property owners should confirm current requirements with the Town of Nantucket and the Commonwealth of Massachusetts. Lee Real Estate is happy to assist with the rental process but does not provide legal or tax advice.