Town Permit Guide

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Short-term rental (Airbnb) rules in Manchester-by-the-Sea, Massachusetts

Manchester-by-the-Sea, Essex County · Bylaws checked 2026-10-03 · Reviewed · 6 cited sections

Allowed with a permit

Only if you live in the home. Manchester-by-the-Sea's General By-law allows short-term paying guests (stays under 6 nights) in owner-occupied homes that hold an annual license from the Select Board; the application fee was initially set at $100. Short-term rentals aren't allowed in accessory dwelling units.

LicenseAnnual license from the Select Board, expires December 31 [2]
Owner occupancyRequired (owner-occupied residential premises only) [1]
Stays coveredGuests staying less than 6 consecutive nights [1]
Application feeSet yearly by the Select Board; initially $100 [4]
RequirementsBoard of Health and Fire Dept. compliance (smoke/CO alarms), local agent, guest registry [3]
Penalty$300 per day of violation [5]
ADUsNo short-term rentals in any accessory dwelling unit [6]

Who can rent

Section 20C of the General By-laws allows renting to short-term paying guests only in owner-occupied homes that are licensed and consistent with the Zoning By-law. Short-term paying guests are defined as people staying less than 6 consecutive nights [1]. The Select Board can allow guests if it finds the accommodations suitable.

Getting a license

Every owner offering short-term stays must first get a license from the Select Board. Licenses run for a calendar year, expire December 31, and must be renewed each year. The Board decides at a public meeting [2]. The application describes the location, number of rooms to be rented and whether meals are served, and is acted on within 3 weeks. By applying you confirm that [3]:

  • the property meets Board of Health rules and Fire Department safety measures (smoke and CO alarms),
  • you've named a local agent who can deal with problems when you're away, and
  • you'll keep a guest registry with each guest's name and dates of stay, available to the Enforcement Agent or Select Board on request.

The Select Board sets the application fee each year; it started at $100 [4].

Enforcement

The Enforcement Agent first sends a notice to stop. Continued violations carry a fine of $300 for each day, and the Select Board can modify, suspend or revoke a license after a hearing [5]. Abutters can also petition for a hearing.

ADUs and zoning

The Zoning By-law bars short-term rentals (as defined in G.L. c. 64G) in both Standard and Large accessory dwelling units [6]. The bylaw doesn't set caps on the number of licenses, a minimum stay, or parking rules, and it doesn't address stays of 6 nights or longer.

State rules

The state's own registration with the Department of Revenue and its rental taxes apply on top of the town license.

See how Manchester-by-the-Sea compares with 8+ other Massachusetts towns on short-term rentals (airbnb / vrbo) →

Next steps

  1. Confirm you'll be renting part of a home you own and live in; the bylaw licenses short stays only in owner-occupied homes, and ADUs can't be used as short-term rentals.
  2. Make sure smoke and CO alarms meet Fire Department requirements and the home meets Board of Health rules.
  3. Apply to the Select Board (Town Hall) on its application form, naming a local agent and describing the rooms and any meals; pay the fee.
  4. Register with the Massachusetts Department of Revenue on MassTaxConnect, keep a guest registry, and renew the town license before December 31 each year.

Common questions

Are short-term rentals allowed in Manchester-by-the-Sea, Massachusetts?
Only if you live in the home. Owner-occupied homes with an annual license from the Select Board may host paying guests staying under 6 nights.
How much is a short-term rental license in Manchester-by-the-Sea, Massachusetts?
The application fee was initially set at $100, and the Select Board sets it yearly.
Can I rent my ADU short term in Manchester-by-the-Sea, Massachusetts?
No. Short-term rentals aren't allowed in accessory dwelling units.
What is the penalty for an unlicensed short-term rental in Manchester-by-the-Sea, Massachusetts?
$300 per day of violation.

Massachusetts' short-term rental law

Since July 1, 2019, M.G.L. c. 64G has taxed and regulated short-term rentals: stays of 31 days or less in a home, apartment, condo or room booked in advance.

State requirements:

  • Register with the Department of Revenue (DOR) on MassTaxConnect and get a Certificate of Registration for each property. Post it in the unit.
  • 14-day exemption: if you rent a property 14 days or fewer in a calendar year, no tax is due. You still have to register and file DOR's declaration by January 15 each year. Go over 14 days and you owe tax on every day, including the first 14.
  • State room occupancy excise: 5.7% of rent (including cleaning and booking fees).
  • Local taxes on top, if your town has adopted them: a local excise of up to 6% (6.5% in Boston), and a community impact fee of up to 3%. The fee applies to "professionally managed" units (an operator with 2 or more units in a town, other than units in the owner's own 1 to 3 family home) and, by separate vote, to units in an owner-occupied 2 or 3 family house. Barnstable County towns add 2.75% for a regional water fund.
  • Insurance: at least $1 million liability coverage per unit, unless the booking platform provides equal coverage (c. 175, §4F).

Towns may go further (c. 64G, §14). They can require local licenses and inspections, cap the number of days or units, limit where rentals are allowed, or ban them entirely.

State sources: M.G.L. c. 64G, §1 (definitions) · M.G.L. c. 64G, §3 (state excise; 14-day exemption) · M.G.L. c. 64G, §3A (local excise) · M.G.L. c. 64G, §3D (community impact fees) · M.G.L. c. 64G, §14 (local regulation) · M.G.L. c. 175, §4F (STR liability insurance) · DOR, Room Occupancy Excise Tax (updated Apr 8, 2026)

What the bylaw says

Exact text from Manchester-by-the-Sea's published bylaws. Section numbers are as printed in the source.

  1. Art. X, Sec. 20C Applicability, General By-laws (updated July 15, 2026) incl. Art. XVII General Wetlands By-law and Sec. 20C Short Term Paying Guest in Homes, p. 30
    Applicability: The rental of residential premises to short term paying guests is allowed in owner-occupied residential premises pursuant to being licensed in accordance with this by-law and consistent with the Town’s Zoning By-law. Short term paying guests are those who are staying in a dwelling unit for less than 6 consecutive nights.
  2. Art. X, Sec. 20C Process, General By-laws (updated July 15, 2026) incl. Art. XVII General Wetlands By-law and Sec. 20C Short Term Paying Guest in Homes, p. 30
    Process: Every owner of residential premises who offers rentals to short term paying guests must first obtain a license to do so from the Select Board. Licenses are valid for a calendar year and must be renewed annually.
  3. Art. X, Sec. 20C Applications, General By-laws (updated July 15, 2026) incl. Art. XVII General Wetlands By-law and Sec. 20C Short Term Paying Guest in Homes, p. 30
    1. The property complies with applicable Board of Health regulations and Fire Department safety measures (fire/smoke alarms and CO monitors)
  4. Art. X, Sec. 20C Application Fee, General By-laws (updated July 15, 2026) incl. Art. XVII General Wetlands By-law and Sec. 20C Short Term Paying Guest in Homes, p. 31
    Application Fee: The Select Board annually shall set a fee for applying for a Short Term Guest Rental Home License. Said fee initially shall be set at $100.
  5. Art. X, Sec. 20C Complaints and Enforcement (3), General By-laws (updated July 15, 2026) incl. Art. XVII General Wetlands By-law and Sec. 20C Short Term Paying Guest in Homes, p. 31
    3. If a license holder persists in such violation, the Enforcement Agent may seek enforcement of this bylaw through the mechanisms set forth in Article I, Section 4 of the General By-laws, and the penalty for violations of this by-law shall be a fine of $300 for each day an offense occurs.
  6. Sec. 9.1.2.2(1), Zoning By-law (compilation dated April 27, 2026), p. 66
    1. Short-term rentals as defined in G.L. c. 64G, §1 shall not be permitted in any Standard Accessory Dwelling Unit.
This page summarizes Manchester-by-the-Sea's posted bylaws as of 2026-10-03. Bylaws are amended, and individual lots can have overlays, subdivision covenants, or HOA rules that are stricter. Confirm with Building Department (Building Inspector) (978-526-2010 (off-hours 978-546-9218)) before you build. Spot an error?