Vineyard towns have started to wrap their arms around regulating the thousands of short-term rentals on the Island, tackling an issue that housing advocates have long said exacerbates the ongoing housing crisis.
Vineyard towns have started to wrap their arms around regulating the thousands of short-term rentals on the Island, tackling an issue that housing advocates have long said exacerbates the ongoing housing crisis.
West Tisbury last week finalized its rules around the lucrative industry, and at a special town meeting last month Tisbury passed limits on the number of days homeowners can rent out their properties. Chilmark officials this week started looking at a bylaw which would also cap owners to renting out no more than one property for 95 days a year.
Edgartown, which has the highest number of vacation rental properties of any Island town, recently formed a committee to look at potential regulations, if any are deemed necessary, and Oak Bluffs has undertaken a study on vacation rentals in town that could inform rules moving forward.
“It’s just a balancing act,” said Mark Leonard, an Oak Bluffs select board member and former affordable housing committee member. “We would be foolish if we tried to prevent short-term rentals, but we have to figure out how to manage it.”
The Vineyard has about 4,000 short-term rentals.
The Vineyard has about 4,000 short-term rentals.
Vacation rentals have a long history on the Vineyard, where homeowners have often rented out family homes in the busy summer months. In recent years, rental properties have become cash cows, with properties being rented, at times, for tens of thousands of dollars weekly during the season.
The industry reached dizzying heights during the pandemic, bringing in more than $9 million in tax revenue to the six Island towns in the last fiscal year. One industry expert said the average price of a three-bedroom rental on the Island jumped nearly 52 per cent between 2019 and 2024. The market has started to come back down though, as vacationers return to old patterns of travel and realtors suggest homeowners reexamine their prices to book more weeks.
Despite the ubiquity and long history of renting homes on the Island, the approximately 4,000 Island rentals registered with the state have largely run without any real oversight from towns until 2024.
Looking to put some parameters around the industry, both West Tisbury and Tisbury moved forward with regulations in order to allow owners to make money by renting properties while also deterring commercial interests from hollowing out the dwindling year-round housing stock.
West Tisbury, the first town to pass rules, is now requiring a two-night minimum stay for short-term rentals. The town is also only allowing owners to rent out just one property, and owners must live in the property for at least 30 days a year.
Tisbury took other steps, capping the number of rental nights to 75 in any given year.
The Chilmark planning board is considering a similar bylaw, though during its meeting Tuesday, board members supported raising the cap to 95 nights a year, giving owners just over three months of rental income.
“It’s a balance between protecting the neighborhood and the homeowner,” said planning board member Richard Osnoss.
The board was also pursuing a wide-ranging exemption for all owners who already have existing rentals.
Towns have been spurred into action now for a number of reasons. The housing crisis keeps intensifying to the point where the conversion of homes into rentals can’t be ignored any longer.
Rentals have a storied history on the Island.
Rentals have a storied history on the Island.
“Short-term rentals have taken off the market a whole bunch of rentals that were year-round, or at least seasonal that workers could rent, because you could make so much more money on short-term rentals,” said Chilmark planning board member Ann Wallace.
The state has also implemented other laws around accessory dwelling units that reference short-term rentals, prompting Island communities to enshrine the use in their own regulations.
Another impetus is a legal case that originated on Nantucket. On the sister island, short-term rentals have been highly controversial, and a dispute over whether short-term rentals are allowed in residential districts made its way to the state land court.
In a decision last year, a judge ruled that short-term rentals could not be the principal use of a home under Nantucket’s zoning, but could be allowed as an accessory use. This led to concerns on the Vineyard, where, until this year, none of the Island towns included short-term rentals in their zoning regulations.
The state’s new building code, which goes into effect in July, also requires town building inspectors to inspect rentals. In Tisbury, the town building inspector is seeking more funds to cover those inspections.
Reade Milne, the Edgartown building inspector, said the town is bracing for the heavier workload.
“It certainly adds a lot of inspections to the department’s responsibilities,” she said.
Edgartown, which has about 1,400 rentals, is taking a measured approach to regulations. The town will consider a zoning bylaw at the annual town meeting that would allow rentals throughout town, while the new short-term rental committee considers the need for any further restrictions.
“It’s a deliberative process,” said James Hagerty, the town administrator. “When lessons are learned and best practices are established, that’s when you take action.”
As new rules go into effect on the Vineyard, it’s not clear exactly the effect it will have on the market, said Joan Talmadge, the co-owner of Weneedavacation.com, a company that helps owners rent about 400 rental properties on the Island.
She was surprised by West Tisbury’s requirement for owners to stay in their homes for at least 30 days a year, but understood the need for guardrails around the industry.
She expected 2025 would be similar to 2024, with the market above 2019 but below the pandemic years. Still, owners harbor concerns as the rules change.
“It’s a lot to keep up with,” she said. “Towns are having these discussions and it’s a good thing to be discussing, how to maintain this balance.”
Comments
Why do we want to bite the
Jim EdgartownWhy do we want to bite the hand that feeds us? We are delusional if we think we don’t need STR or any rentals.
Without rentals we don’t have a vibrant economy, it that simple.
We have taxed and know this…. People will not come. Is that what we want? Then fine, but there will be no jobs, plenty of affordable housing.
We need to stop this overreach and save the island before it is too late.
I would suggest reading the
Nestor Makhno TisburyI would suggest reading the article.
I 100% agree. It is becoming
Luke EdgartownI 100% agree. It is becoming absolutely absurd. An owner has a right to rent THEIR property how they want to.
Start with a moratorium.
CautionStart with a moratorium. Watch it unfold. This is extremely dangerous for everybody right down to the hourly seasonal worker. Moratorium. Moratorium. Moratorium. SSA volume, food volume, tax rates and everything will be impacted. Go very slowly for all our sake. Messing with a free market is never a good idea.
What is happening? Why ? We
Carol Oak BluffsWhat is happening? Why ? We need rentals more than ever! What are the Towns thinking? Tourists make up our economy.
Trade people, small business, restaurants need to understand the impact this will have.
We need tourists and all rentals more than ever!
This mentality we don’t need rentals is absurd!
We are a tourist economy.
I would argue we're over
Jim Oak BluffsI would argue we're over-reliant on tourists. Extreme tourism has destroyed the character of our island.
Please elaborate? We are a
Tom EdgartownPlease elaborate? We are a tourist based economy. The alternative is vacant store fronts, huge taxes, and no jobs.
Yes the towns are struggling
tom BostonYes the towns are struggling with managing STR. They do not want to give up the revenue!
How did 2024 tax revenue
2024 STR tax numbersHow did 2024 tax revenue numbers pan out?
The six towns took in a
Ethan Genter, News Editor Vineyard GazetteThe six towns took in a combined $9.3 million in tax revenue in fiscal year 2024.
I would gladly pay double my
Jim EdgartownI would gladly pay double my property taxes if we reduced STRs by 50%. Our current tax rate is one of the lowest in the State. In fact it is embarrassingly low. All ships lower with the tide as well! Less STRs=Less STHelp=Less Steamship Stress=Less STTraffic……..Edgartown, wake up, most of the STR owners can’t vote, they don’t live here. It is the perfect opportunity to do what’s right for those of us who do live here.
Thank you. 8.8m in 2023 and 9
20224 STR tax numbersThank you. 8.8m in 2023 and 9.4m in 2024. The consistent thing I heard was vacancy was at Al all time high last season. This seems to say we have reached saturation. This also seems explains the number of winter and year round rentals popping up. Sound like the market is correcting itself.
My husband and I rented on
Long Time Renter Edgartown renters point of viewMy husband and I rented on the Vineyard 2-3 weeks faithfully in September for the last 31 years. Sadly the 2024 season was probably our last, with rents, use taxes, and cleaning fees (some as high as 500 for the week) driving the rental cost of a clean modest home to almost ridiculous amounts. Especially when the cost of food is factored in. We always booked our September stay in February. This year as we began our planning it is quite evident that as much as we loved the vineyard ( and I have been vacationing on the island since I was a child) the costs associated 5 to 7 thousand dollars for a 2 week 2025 rental have us exploring other options.
We need to manage these
OB Bob Oak BluffsWe need to manage these rentals better on the island. Years ago this was not a problem when many families came for the summer and use their house. Once family members passed the houses were sold and now we have this problem of too many rentals. Yes we are a tourist community, but we can do better. The problem with all these LLCs are greed. Pick up a paper or look online, there are many communities across the country, including Hawaii, who are trying to limit the short term rentals.
All LLCs are not about greed.
Ross R VHAll LLCs are not about greed. We have a family house that is only used by our family and it is in an LLC for inheritance purposes.
To the best of my knowledge,
Hugh Weisman ChilmarkTo the best of my knowledge, the various town STR restrictions are written exempting family LLC from restrictions applying to "greedy" corporate LLCs.
Last year was the first year
Edgartown Renter New YorkLast year was the first year we haven’t gone to Martha’s Vineyard in about 20 years. The island is losing its charm. You should pay attention to your Steamship Authority along with your rules on rentals. There are plenty of other places to go without the hassles.
Same here. We've been to MV
MA Mainlander Worcester CountySame here. We've been to MV 9 of the last 10 summers (last minute landlord health issue canceled us out one year). This year we are foregoing the island. Getting crazy. Fees, food prices, crossing your fingers that your SSA ferry won't get canceled. Used to always re-book in January. Now we're being asked to commit and put 50% down in the fall. As a lifestyle choice, decided to use our leisure money differently this year. MV has no other industry. Good luck if you curtail your tourism industry!
Why are we being stripped of
John Aldeborgh KatamaWhy are we being stripped of our liberties? This behavior is insidious, it will only ever get worse and the people will lose more and more control over their own lives and limited resources. All for the greed and hunger for power of a few who can’t manage with the abundance they already have.
None of the towns are
Jon TisburyNone of the towns are proposing to ban STRs, they are just putting in place some rules so towns will remain viable year round communities. That said, STRs are not the main source of income for many if not most people who live here. The year round population has ballooned in recent years, mainly with wealthy professionals and retirees, and there is the historic and substantial number of long term summer people, both owners and renters. These two groups, combined with the STRs that are here and will always be here are more than enough to sustain a vibrant economy. Continuous growth is not an option on an island with limited resources.
Speaking as a former owner in
Larry NSpeaking as a former owner in Edgartown for 30 years, the 30 day minimum stay is in excess of the 14 day IRS limit for personal use. If strictly followed, anything over 14 days personal use (including days provided as rent-free for friends & family) will require a reduction in allowable expense deductions for property tax, insurance, and utilities; expenses that would otherwise be fully deductible.
So the homeowners who have to
WillSo the homeowners who have to pay taxes on the income they receive from renting their homes for 30 days is unfair, but the 14 day, completely tax-free income is fair? Seems unfair to me that owners of homes valued at over $1 million have been enjoying the luxury of tax-free rental income for 14 days per year. My hourly wages are taxed every single week I work.
As Ronald Reagan said, "The
Chris Thompson EdgartownAs Ronald Reagan said, "The nine most terrifying words in the English language are: I'm from the Government, and I'm here to help. "
My concerns are the STRs that
Wht's The STR For? MVYMy concerns are the STRs that are used for corporate or political events. OB in August
I favor a reasonable approach
Bob Kelly Oak BluffsI favor a reasonable approach such as what is being proposed. I want the houses around me to be owned by families who are here for part of the year. It used to be I knew all the families and many rented part of the summer. Then there were a few families that rented all summer, coming only in the shoulder season. Now there are just rentals which is a shame - there's no person or family to get to know or contribute to the neighborhood. And I agree with another comment here - the children or grandchildren who inherit the house are far more likely to rent all the time and visit once a summer. I also see the big Oak Bluff houses turning into B&Bs and the Inkwell becoming a commercial name - something that speaks to the trend to make money off of everything on the island.
I agree.
Amy EdgartownI agree.
I support rentals on the island too -as we have had and needed them for decades. That is, year round or seasonal rentals. The STR’s are commercial enterprises and should not be allowed in residential zoned spaces. Greed is indeed fueling this issue. Worsening as we loose more and more true Island families who appreciate trying to retain some semblance of what makes Martha’s Vineyard special and unique.
That's a broad generalization
MA Mainlander Worcester CountyThat's a broad generalization. The rental we stayed at for 7 years was owned by a professional gentleman who lived on the island about 42 weeks of the year. He rented his well-maintained residential home about 6 weeks (and eventually only 3 weeks) of the summer while he traveled, and he also stayed on the mainland a few other weeks throughout the year for work commitments. Maybe (maybe) that is becoming less common in 2025, but there are absolutely lots of owners who do some renting in peak season for secondary income. I imagine some landlords rent as a requisite to be able to live on island year-round. Black Rock does not own the Island just yet!
I disagree, not all STR’s are
Joan VHI disagree, not all STR’s are “corporate enterprises” - there is a rather large community here that are year-round residents that depend on the supplemental income from renting out their property on a short-term basis. This new bylaw will greatly hurt that part of our island community.
This is just the latest
Roddy Seasonal VisitorThis is just the latest article on the out-of-control rental, taxation, and dining costs on the island (not to mention charging $2,000 per week for a Jeep rental). But this one finally hit home enough to convince me, a regular seasonal visitor/renter for over 25 years, to move on from my beloved MV. What a waste. Enjoy your vacancies and local exodus.
I worry about the push back
Betty EdgartownI worry about the push back on folks that rent. We need the rentals more than ever.
I would be very concerned about this. If I was a small business owner, restaurants- shop owners I would be very nervous.
We need the rentals to be a vibrant community.
This also will affect trade jobs. Without STR and all rentals kiss the good paying jobs good bye….
As a seasonal restaurant
TC MVAs a seasonal restaurant worker and an Islander for 27 years I can say most of the Island business is from STR’a and renters as a whole. They spend money and it goes back into our economy.
Why do we want to push tourists out?
I own a restaurant on island.
Island Business owner EdgartownI own a restaurant on island. If we continue down this road we will have no small business, no downtown community. Many of us barely made it through Covid, now we want to restrict people for coming?? I might as well close up now…
Nothing better than empty store fronts..
So sad.
This is out of control…
Peter EdgartownThis is out of control… another way to push the people that feeds us away.
Why do we want to push tourists away? We should be encouraging people to do STR’s. Someone commented “we will not have good paying jobs but plenty of affordable housing” it’s so true.
We are a Island that is dependent on tourism.
I have a 3 bed house in
Charlie Callahan So Boston EdgartownI have a 3 bed house in Edgartown and have old friends from Southie who rented here for years,now they stay with me in the summer for a couple of weeks for nothing.They said that it is like buying a house now to rent here.People here are going to be sorry.You can go to Yarmouth,Dennis etc on the Cape for 1/2 the price of the vineyard,with less snobby people and no ferry to contend with.
Personally I feel we should
Mary EdgartownPersonally I feel we should be encouraging people to come to our Island! Not discouraging folks.
I agree with most comments. To me the people who want to stop th STR’s and all rentals are the people who are Wealthy and don’t care about the local economy or jobs.
We stop rentals we cannot survive as a community. Sure the 1-10% will not be affected
?encourage more visitors to
Amy Edgartown?encourage more visitors to the island? Hardly! They will keep coming whether we can handle it or not. Our water / waste water / ems systems can hardly keep up with the massive increase to the year round population never mind in the summer months. The traffic and steamship issues in July/ August alone speak to the fact that we are overloaded.
Ps - I’m not wealthy and I certainly care about the local economy. I work two jobs to try to afford to stay here, the place that my family has been living year round for 4 generations. My support of limiting the STR’s, is to try to maintain the true island community that is being completely ruined by greed.
Exactly Amy!! Our
Native EdgartownExactly Amy!! Our infrastructure is beyond the tipping point including the ferry system. There is an implosion in the works.
I understand the limit to the
Nick Dean OBI understand the limit to the LLCs owning multiple properties, but is there really a need to create a whole new local bureaucracy of inspecting all the houses now? What is the point of having a person check on a house every year and dinging it for "code" violations. Its just going to make prices go up more and waste local govt resources. The focus should be on using the short term tax to build more sustainable housing and stopping the MVC from denying every project that would increase the housing supply.
We need renters and tourists
Tim EdgartownWe need renters and tourists more than ever!
We are just getting back on our feet after the Covid lockdown, now we want to stop or limit rentals?? What ? We should be going the opposite. What are people thinking??
Short-term rentals are
Mark VHShort-term rentals are businesses, plain and simple. You can’t claim your home is private while running it like a hotel. So pick a lane: do you actually live there, or are you cashing in on tourists? Islanders have milked the “summer rental” cash cow for far too long. Price gouging vacationers to fund your idyllic island dream? Time’s up. The rest of us are tired of subsidizing your “groovy” lifestyle.
We need renters for our
Concerned Citizen EdgartownWe need renters for our island economy not more regulation. My only concern is that the many fundraisers for off-island organizations don't give anything back to the island. They should be required to give 5% of the proceeds that they raise to an island charity.
Seems like a good start would
Will EdgartownSeems like a good start would be to ban corporations and LLCs from being allowed to purchase and rent property for short term use. Actual humans sometimes have a heart, corporations exist solely to protect and further capitalism.
How many "corporations" are
Enough Already Oak BluffsHow many "corporations" are buying up island homes and turning them into STR's? I would submit very, very few. At today's prices it's not much of a moneymaker. Especially if you can invest in properties in other states that can be rented for much more than 8-10 weeks a year. It makes little financial sense for a corporation to be buying up island properties when their return on investment would be far greater somewhere else. I know several native born islanders who own rental houses under LLC's. Are these locals the "big corporations" that are so disdained? There are very few islanders that can claim their income isn't either directly or indirectly supported by STR's, even municipal workers. Summer homes pay 80% of all real estate tax revenues, add in the STR taxes and meals taxes and the jobs they create. We should be thanking these people profusely, not demonizing them.
Couple thoughts:
Lifelong visitor now owner EdgartownCouple thoughts:
- I'm a millennial who grew up coming here, and the only way I could afford to keep coming here and have my children experience my childhood, was to buy a vacation home that we could also rent out.
- the cost of that home is so high that we need the rental income to afford it.
- we have it in an LLC for insurance and liability protections, but we're not a company, we're a family trying to have our young kids experience the island like we did.
- we have invested in the home, decorated it beautifully, and charge 20-30% below what we could get for it because I refuse to gauge families like mine.
- we have consistently great booking coverage, we rent year round, including in the fall and winter.
- renting year round (>95 days) brings in that extra income that we need to be able to keep our summer prices affordable and not price gauging.
- if the towns restrict the number of days needed to rent, then summer rental prices will go up. It's a simple fact of needing to afford the mortgage.
- also, the fees renters are asked to pay by VRBO, Airbnb, and now the taxes, are pushing 27%(!!!!). VRBO takes a 15% markup on our island stays because of how lucrative it is, and Edgartown now charges 12%. These fees are KILLING the ability to ask for higher rents - the market can't stomach it.
- my rents never increased more than 10% during the pandemic, and we were booked almost 250 nights that year. Reasonable rents = consistent visitors = sustaining income for the island. If you milk the golden goose too much it will eventually run out.
- you can't cap the number of nightly stays and expect rents not to rise, which, when combined with booking and tax fees (plus the ferry costs and booking night area and isane costs of restaurants now), won't result in the golden goose being killed.
In short, DON'T CAP THE NUMBER OF RENTAL NIGHTS without expecting a surge of summer rental prices, there y impact overall summer visitor traffic and impacting the overall island economy. Plus, lower summer rental prices that can be sustained mby more rental days in the off season, means that cleaners and helpers still have income to rely upon during the off-months. If you cap the rental days you guarantee that you're putting a mail in the coffin for visitors and rental income coming in during the rest of the year, making livelihoods here for the other 9 months that much harder.
Or perhaps you could consider
Amy EdgartownOr perhaps you could consider renting your investment property year round to say a teacher, a nurse, a doctor, a police officer etc. There are many professionals willing to pay top dollar for year round rentals these days. If you truly want your next generation to experience and enjoy the island as you have known it to be, you would consider that STR’s are ruining the island.
Many Islanders do NOT depend on tourism dollars. We too would love to be able to enjoy summers again. To know our neighbors. To find a parking spot at state beach or go out to eat - support local businesses- without a 2 hour wait..
Amy,
Mike SomewhereAmy,
It appears you missed the point of the above comment.
They want to use their house too. Renting to those you have mentioned would be long term rentals and they would no longer be able to enjoy the property.
to me there is no link to STR
michael edgartownto me there is no link to STR and affordable housing.
renting your home all winter, with a lease is risky. massachusetts favors the tenant, who won’t move out, rather than the landlord.
and your home is usually abused by the tenant overcrowding and neglect….
this is a ridiculous bylaw, by thinking you are fixing something that isn’t broke
It's interesting that most of
SarahIt's interesting that most of the comments are about the loss of income to owners and how the new bylaws will discourage tourists from visiting. My understanding is that there is a real shortage of housing for seasonal workers and year round residents who can't afford to buy. I guess nobody cares about them?
Well the towns took in $9.3m
tom BostonWell the towns took in $9.3m in fiscal 2024 from STR taxes and fees. Why is not every cent off this earmarked for affordable housing? This way STRs will be supporting AH directly. Now if these taxes and fees become too onerous (and rentals were down last year and if I had to guess will be down further this year), there will be less tourist dollars will will hurt year rounders and AH initiatives. It's about balance and personally I think that is totally lost in this debate. I doubt there's any substantive economic analysis going on at all.
So, what about the group of
Year-rounder VHSo, what about the group of us who are year-round homeowners and work extremely hard to afford to stay here? Restricting the number of days we can rent out our accessory dwelling unit (ADU) will significantly reduce our supplemental income. As a family struggling to keep up with the rising cost of living here, we fear that this new law will be the final straw, pushing us to consider leaving the island altogether. If we envision building a vibrant year-round community, this approach is not the right path to achieve it.
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