Airbnb, Vrbo may soon be legal in Fall River. Would the Highlands ‘castle’ be allowed?

FALL RIVER — Short-term rental offerings may soon be legalized — but with strict guidelines that would not allow the city’s iconic Highlands mansion to operate as an Airbnb.

At a meeting of the Committee on Ordinances and Legislation on Jan. 14, and at a City Council meeting later that evening, councilors debated a new ordinance that would allow residents to rent their primary residence in short-term rental agreements “under carefully controlled conditions,” according to a letter from Corporation Counsel Alan Rumsey.

The ordinance, which would legalize the operation of short-term rental businesses in the city, passed unanimously during its first reading but will go before the City Council once more for a second vote after stipulations are added that will require operators to buy business-scale insurance.

How it started: Fall River’s landmark ‘castle’ was for rent on Airbnb. The city says this broke the law.

Can people use Airbnb and Vrbo in Fall River?

For now, short-term rentals aren’t yet legal.

“They do damage,” Rumsey said. “It’s ruined neighborhoods. Fall River is not yet a tourist destination of the world. But it’s taking shape.”

City Councilor Andrew Raposo, who is also a member of the Committee on Ordinances and Legislation, compared the business of short-term rentals to that of hotels, which ushers in another frontier: taxes.

Rumsey said a 4% default tax rate would be tacked onto short-term rental reservations in Fall River, which mirrors typical tax rates charged by hotels.

Platforms like Airbnb or Vrbo want to work with communities to collect and submit taxes, Rumsey maintained, meanwhile streamlining the process for operators to apply as hosts and for renters to secure reservations.

It’s unknown how many short-term rental businesses are currently operating in the city. Laura-Jean Sampson, a member of the City Council and the Committee on Ordinances and Legislation scrolled through her phone, homing in on Airbnb’s and Vrbo listings in Fall River.

“There are some pretty nice ones, but we aren’t collecting a dime for that,” she said.

Rumsey said an exact number of short-term rental operations is “hearsay,” other than ones who have made headlines, such as the 7,800 square-foot mansion at 503 Highland Ave. that is currently the subject of a lawsuit.

Dueling lawsuits: Fall River and Highlands mansion owners sue over Airbnb rentals. Here’s what’s happening.

What ‘conditions’ need to be met before a house may be listed as a rental?

According to the proposed short-term rental ordinance:

• Primary residences can’t be rented for longer than 30 days at time to one rental party at a time, which restricts the renting of bedrooms or separate spaces to multiple parties.

• Operators must live at the address for at least nine months out of the year, though there are no owner-occupied provisions.

• A maximum of eight guests are permitted at a time, with no more than two people sharing a bedroom.

• Quiet hours between 10 p.m. and 7 a.m. on weekdays, and between 10 p.m. and 8 a.m. on Sundays must be posted in the rental.

• Filing a certificate annually with the city’s Inspectional Services is required, before alerting neighbors and abutters within 30 days of registering as an operator.

“The bigger the party you have,” Rumsey said, “you’ll have increased traffic, increased partying, increased noise.” Trash and police presence is expected to increase in areas where short-term rentals are offered, Rumsey said.

He said an additional 3% “community fee” may be mandated to mitigate the impacts of short-term visitors felt by neighborhoods.

“If they want to complain, who do they go to?” City Councilor Shawn Cadime asked, though Rumsey said there is no system in place yet for abutters to file complaints, and that the registration and abutters’ notice will process will need to come under deeper consideration.

What types of housing cannot be used for short-term rentals?

Any dwelling in a single-family zoning district, a home that is not the operator’s primary residence, subsidized rentals or housing that is designated “affordable” or barred by state law from being leased or sub-leased, cannot be used for a short-term rental.

“Single-family homes are the most protected,” Rumsey said.

HOA rules, unpaid taxes, or operators being in violation of housing codes may further limit and eliminate short-term rental prospects.

Three or more violations over a 12-month period will render a property ineligible.

What about homes that are already doubling as short-term rentals?

Fall River’s short-term rentals are still not legally recognized, which have caused conflicts between property owners and the city in the recent past.

Property owner Austin Feng of Wellesley was denied a zoning variance in January 2023 to offer “The Mansion at the Highlands” to short-term renters, which then fueled a “duel” of injunctions filed between Feng and the city. The Zoning Board of Appeals unanimously denied a variance to allow Feng and his wife, Rui Tang, to rent the property short-term despite it being in a single-family zoning district.

They sued the city in July 2024 after Director of Inspectional Services Glenn Hathaway served them a notice of multiple zoning violations totaling $3,000.

Feng argued that the city and ZBA can’t legally prohibit him from renting the house, as the zoning ordinance does not contain any language related to short- or long-term rental operations.

The lawsuit between Feng and the city is currently ongoing. A non-jury trial was held in October before Judge Renee Dupuis, who took the matter under advisement on Oct. 22; Dupuis has not yet issued a ruling.

Currently, there are 11 available Fall River listings on Airbnb, and five on Vrbo — and as of Jan. 14, the 503 Highland Ave. mansion, listed for $883 per night, is one of them.

This article originally appeared on The Herald News: Airbnb, Vrbo: Fall River considers legalizing short-term rentals

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