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Short-term rentals in the hot seat as Boston seeks to boost inventory

by Stephanie Sims and Natalie Terchek

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Boston Mayor Martin J. Walsh recently proposed limits on how often landlords can make units available for short-term stays through services like Airbnb in an effort to loosen up the city’s rental market.

The limitations would set up a framework to regulate such units by requiring landlords to register each unit with the city and pay an annual license fee. They also would limit the number of nights a unit can be booked each year.

The move, if approved by Boston City Council, could make up to 2,000 units available to long-term rentals, The Boston Globe reported, which in turn would influence overall housing costs in the city. In the announcement, the mayor cited a University of Massachusetts Boston study that found that rent prices in cities with increasing Airbnb listings were driven up 0.4 percent.

“Preserving Boston’s affordability is key to keeping our communities stable and ensuring every person and family who wants to live here can afford to do so,” said Mayor Walsh. “This ordinance is an important step towards our goal of reducing housing costs by creating disincentives to taking units off the market for use as short-term rentals. It also allows for the continued use of short-term rentals in scenarios that are non-disruptive to our neighborhoods and support our tourism industry.”

The short-term lease proposal is part of Walsh’s commitment to adding 53,000 housing units to the city by 2030, including affordable housing. Since the plan was launched, more than 24,000 units have been permitted, according to Walsh’s office.

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