Is Beverly, Massachusetts Good for Airbnb Investment?

To start an Airbnb in Beverly, Massachusetts, begin by researching local zoning laws and regulations through the Beverly City Clerk's office, as Beverly requires short term rental operators to obtain a business license and comply with zoning ordinances that may restrict rentals in certain residential areas.

Launch checklist

• Contact the Beverly Building Department to determine if you need special permits or inspections, and check with the Massachusetts Department of Revenue for state tax registration requirements including the 5.7% state lodging tax.
• Find a suitable property by searching Beverly's diverse neighborhoods like the Cove, Centerville, or areas near Lynch Park, ensuring the property meets safety requirements including smoke and carbon monoxide detectors, fire extinguishers, and emergency exit plans.
• Furnish the space with quality furniture, linens, kitchen essentials, and amenities that appeal to visitors exploring Beverly's historic downtown, beaches, or proximity to Salem, while ensuring compliance with Massachusetts sanitary codes.
• Create your Airbnb listing with professional photos highlighting Beverly's coastal charm and proximity to Boston (25 miles), set competitive pricing based on seasonal demand (higher rates during summer beach season and October tourism).
• Manage your property by establishing check in procedures, maintaining cleanliness standards, responding promptly to guest communications, collecting and remitting the required local and state taxes.

To identify profitable short term rental properties in Beverly, Massachusetts, focus on locations within walking distance of the historic downtown area, near Lynch Park waterfront, or close to the commuter rail station for easy Boston access.

What to prioritize

• Target 2 to 4 bedroom properties built after 1950 with parking, outdoor space, and period charm that can accommodate families visiting nearby Salem attractions or business travelers.
• Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $150 to 300 per night depending on size and amenities.
• Research competition by studying existing Airbnb and VRBO listings within a 2 mile radius, identifying gaps in amenities like pet friendly options or family focused properties.
• Utilize tools like Rabbu for Beverly specific rental regulations compliance, STR Helper for performance tracking, and connect with North Shore real estate agents familiar with investment properties.

To obtain an Airbnb/STR permit in Beverly, Massachusetts, you must first register with the Massachusetts Department of Revenue for state lodging taxes and obtain a Certificate of Registration. Required documents also include a life safety inspection certificate from the Beverly Fire Department, which costs around $100 to 150, and compliance with zoning requirements (STRs are typically allowed in residential zones with restrictions on the number of guests and parking requirements).

Documents and approvals

• The process typically takes 4 to 6 weeks from submission to approval, and you must renew annually by December 31st, maintain guest registries, collect and remit both state (5.7%) and local (6%) lodging taxes.

Short term rentals (STRs) are legal in Beverly, Massachusetts, but operate under strict local regulations implemented around 2019 to 2020.

Core operating requirements

• The city requires STR operators to obtain a business license and comply with zoning restrictions that typically limit rentals to owner occupied properties or specific residential zones.
• Beverly prohibits STRs in certain densely populated neighborhoods and requires operators to maintain liability insurance, provide emergency contact information, and ensure properties meet safety standards including smoke and carbon monoxide detectors.
• The city limits the number of guests and requires parking compliance, while also mandating that operators collect and remit local taxes.
• Recent changes have included stricter enforcement mechanisms and increased penalties for violations, with the city conducting regular inspections and responding to neighbor complaints about noise, parking, or overcrowding issues.

The most promising Airbnb investment areas in Beverly, Massachusetts include the Downtown Historic District, which attracts tourists interested in colonial architecture and proximity to Salem's witch trial sites; the Waterfront/Harbor District near Lynch Park and Dane Street Beach. The West Beverly neighborhoods offer appeal to families visiting nearby attractions like the Rebecca Nurse Homestead, while properties near the MBTA Commuter Rail stations attract visitors who want easy access to Boston while staying in a quieter, more affordable location than downtown Boston hotels.

In Beverly, Massachusetts, Airbnb hosts are subject to multiple lodging taxes including the state excise tax of 5.7% on short term rentals under 90 days, plus Beverly's local room occupancy tax of 6%, for a combined rate of 11.7% on gross rental receipts. The Massachusetts Department of Revenue requires hosts to register for a tax account and file monthly returns by the 20th of the following month, remitting the 5.7% state portion, while the 6% local tax is collected by the city of Beverly with similar monthly filing requirements.

Taxes and filing responsibilities

• Airbnb can collect and remit these taxes automatically for hosts who opt into their tax collection service, which began around 2017 to 2018 for Massachusetts properties.
• Exemptions typically apply to rentals of 90 days or longer, which are considered long term leases in preference to transient accommodations, and some municipalities may exempt rentals under certain dollar thresholds.

Starting an Airbnb in Beverly, Massachusetts requires approximately $650,000 to $750,000 in total initial investment.

Cost breakdown

• Property purchase costs average $525,000 based on Beverly's median home price as of 2023.
• Furnishing a 2 to 3 bedroom property typically runs $15,000 to $25,000 including beds, linens, kitchen essentials, living room furniture, and decor.
• Initial setup costs including professional photography, listing creation, and basic renovations total around $5,000 to $8,000.
• Permits and fees include a $200 short term rental license from Beverly, $150 state registration fee, and potential $500 to $1,000 in legal/administrative costs.
• Insurance premiums for short term rental coverage average $2,500 to $4,000 annually, requiring $1,250 to $2,000 upfront for six months.
• Utility setup and deposits for electricity, gas, water, internet, and cable total approximately $800 to $1,200.
• First six months operating costs including utilities ($1,800), cleaning services ($3,600), supplies and maintenance ($1,500), platform fees assuming 60% occupancy ($4,200), and marketing ($1,000) amount to roughly $12,100.
• Additional considerations include property taxes ($8,750 for six months based on Beverly's average rate), potential HOA fees ($1,800 if applicable), and a recommended $10,000 emergency fund for unexpected repairs or vacancy periods.

Airbnb properties in Beverly, Massachusetts typically generate annual revenues of $25,000 to $45,000 for well positioned properties, with average daily rates ranging from $120 to $200 depending on proximity to the waterfront and seasonal demand from summer tourists visiting nearby Salem and Marblehead.

Profitability indicators

• Operating expenses generally consume 40 to 50% of gross revenue, including cleaning fees ($50 to 75 per turnover), property management (15 to 25% of revenue), utilities ($200 to 300 monthly), insurance ($1,500 to 2,500 annually).
• Properties within walking distance of Beverly's Centennial Park or historic downtown command premium rates and achieve 65 to 75% occupancy during peak season (May October), while inland properties typically see 50 to 60% annual occupancy.
• Net profit margins for successful Beverly Airbnb operators range from 15 to 30%, with waterfront condos and historic homes near the commuter rail station to Boston performing best due to both leisure and business traveler demand.
• Key success factors include professional photography highlighting Beverly's coastal charm, competitive pricing during Salem's October tourism surge, and maintaining properties that appeal to both families visiting local beaches and professionals seeking alternatives to Boston hotels.

Airbnb investments in Beverly, Massachusetts typically generate annual ROI of 8 to 12% with cash on cash returns ranging from 6 to 10% depending on property type and location within the city.

Return planning figures

• Properties near Beverly's downtown area and close to the commuter rail to Boston command higher nightly rates of $120 to 180, while residential areas average $80 to 120 per night.
• Initial profitability usually occurs within 12 to 18 months for well positioned properties, with break even occupancy rates around 45 to 55% annually.
• The market benefits from Beverly's proximity to Salem's tourist attractions, Boston accessibility, and seasonal demand from summer visitors to the North Shore, with peak months (June October) generating 60 to 70% of annual revenue.
• Investment properties typically require $40,000 to 80,000 down payment for single family homes priced between $400,000 to 600,000, with total returns including appreciation averaging 10 to 15% annually over a 3 to 5 year holding period.

STRSearch is a national platform that specializes in identifying profitable short term rental properties for investors, including in Beverly, Massachusetts.

Companies and resources

• Local real estate agents in the Beverly area who work with Airbnb investors include Coldwell Banker Realty agents, RE/MAX agents, and Keller Williams North Shore specialists who understand the local vacation rental market dynamics.
• National services that help investors find profitable Airbnb properties include Mashvisor, which provides rental property analytics and market data, AirDNA for short term rental market insights, and BiggerPockets for investor networking and deal sourcing.
• Local property management companies like North Shore Property Management and Essex County vacation rental specialists can assist with both acquisition and ongoing management of Airbnb investments.
• RedAwning and Vacasa also provide market analysis and property management services for short term rental investors in the Beverly market, while platforms like Roofstock and HomeUnion focus on turnkey rental property investments that can be converted to Airbnb use.