The Nantucket Land Court recently issued a significant ruling that may have far-reaching implications for short-term rentals. The issue arose when Cathy Ward, a property owner in a residential area of Nantucket, raised concerns about her neighbors, the Grapes, using their house for short-term rentals. Ward argued that these rentals violated town bylaws, which restrict the use of properties to specific purposes outlined in the zoning regulations.
Ward testified that since the Grapes began renting out their home in 2017, her experience of living in the area had deteriorated due to frequent turnover and disrespectful behavior from renters. She contended that the Grapes were essentially operating a commercial venture in a residential zone, rather than using their property as a primary residence. Evidence presented during the trial revealed that the Grapes spent only a fraction of the year living in their home, while renting it out for the majority of the time.
The court sided with Ward, interpreting the bylaws to permit rentals of primary dwellings only as an accessory use, subordinate to the primary purpose of residential occupancy. Since the Grapes rented out their property more than they lived in it, the court deemed this usage to be in violation of the bylaws, characterizing it as an illegal commercial activity.
This ruling challenges the prevailing belief in Nantucket that property owners have an inherent right to engage in short-term rentals, regardless of their actual use of the property. If upheld on appeal, property owners would be required to demonstrate that short-term rentals are ancillary to their primary, personal use of the property.
The implications of this judgment extend beyond Nantucket to other areas in Massachusetts lacking specific zoning regulations addressing short-term rentals. Property owners currently renting out their properties or considering such investments should closely monitor this case, as it could shape future regulations and practices regarding short-term rentals in the state. Plans are already underway in Nantucket to appeal the decision, with preparations being made for upcoming town meetings to address the issue.