Salem Code of Ordinances ch. 15 § 15-5
Residential uses not subject to certain provisions of chapter
Operative Text
(a) Currently licensed lodging houses. A residential unit offered as a short-term rental that is located in a dwelling holding a current and valid certificate of occupancy as a lodging house from ISD and a lodging house license from the Salem Licensing Board as of the effective date of this section shall be subject to the registration and room occupancy excise tax requirements contained herein but shall not be subject to any limitation with respect to the number of days per year that a unit or units may be rented out as a short-term rental. (b) Existing bed and breakfasts. A residential unit offered as a short-term rental that holds a current and valid certificate of occupancy as a bed and breakfast from ISD as of the effective date of this section shall be subject to the registration and room occupancy excise tax requirements contained herein but shall not be subject to any limitation with respect to the number of days per year that a unit or units may be rented out as a short-term rental. (c) Residential units contracted for hospital stays. The use of a dwelling unit or portion thereof for which a contract exists between the owner of the dwelling unit and a healthcare facility or government entity or non-profit organization registered as a charitable organization with the Secretary of the Commonwealth of Massachusetts or classified by the Internal Revenue Service as a public charity or private foundation that provides for the temporary housing in such unit of individuals who are being treated for trauma, injury, or disease, or their family members, shall not be considered a short-term rental. This exemption shall only apply when a unit is occupied for the use specified in this section. (d) Residential units used for furnished institutional or business stays. The use of a residential unit for which a contract or an agreement exists between the building owner, a corporate housing operator and an institution or business for the temporary housing of employees or individuals affiliated with such institutions or business, where the minimum stay is at least ten days, shall not be considered a short-term rental.
Salem Code of Ordinances ch. 15 § 15-5 carves out four categories of residential uses from certain short-term rental restrictions. Dwellings that held a valid lodging house certificate and license, or a bed-and-breakfast certificate of occupancy, as of the ordinance's effective date must still register and pay the room occupancy excise tax but face no annual cap on rental days. Two additional categories—units rented under contracts with healthcare facilities, government entities, or qualifying nonprofits for patient or family housing, and units used for corporate or institutional stays of at least ten days under a formal agreement—are not classified as short-term rentals at all under this chapter.
Plain English — not legal advice.
Operators of properties covered by Salem Code of Ordinances ch. 15 § 15-5 generally maintain documentation showing that their lodging house or bed-and-breakfast credentials were current and valid as of the ordinance's effective date, since that status is what triggers the day-limit exemption. Even exempt lodging houses and bed-and-breakfasts must comply with the chapter's registration and room occupancy excise tax requirements. Owners whose units are used exclusively under qualifying healthcare or corporate housing contracts typically keep copies of those contracts on file to demonstrate that the use falls outside the short-term rental definition entirely.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Salem Code of Ordinances ch. 15 § 15-5 defines which living arrangements fall outside the chapter's standard short-term rental rules, which can affect the protections and obligations that apply to a given unit. If you are staying in a unit under a healthcare facility contract or a corporate housing arrangement, the unit may not be regulated as a short-term rental under this chapter. Tenants or occupants who have questions about whether a specific arrangement is properly classified under § 15-5 may consult Salem's Inspectional Services Department, the Salem Licensing Board, or a local tenant-rights organization for general guidance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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