Is Egremont, Massachusetts Good for Airbnb Investment?

To start an Airbnb in Egremont, Massachusetts, begin by researching local zoning laws and regulations through the Egremont Town Hall, as the town may require special permits or have restrictions on short-term rentals in residential areas. Contact the Egremont Building Department to determine if you need a lodging house license or special use permit, and check with the Board of Health for any health department requirements. Find a suitable property by working with local real estate agents familiar with Berkshire County or searching online platforms, ensuring the property is in a zone that allows short-term rentals and has adequate parking and septic capacity. Obtain necessary permits which may include a business license from the town clerk, fire safety inspection from the local fire department, and potentially a meals tax registration with the Massachusetts Department of Revenue. Furnish the property with quality furniture, linens, kitchen essentials, and safety equipment including smoke and carbon monoxide detectors, fire extinguishers, and first aid kits. Create your Airbnb listing with professional photos highlighting the property's proximity to Berkshire attractions like Tanglewood, ski areas, and hiking trails. For ongoing management, establish relationships with local cleaning services, maintenance contractors, and consider property management companies in the Berkshires if you live far away, while maintaining compliance with Massachusetts short-term rental tax requirements and any local occupancy limits or noise ordinances specific to Egremont.

To identify profitable short-term rental properties in Egremont, Massachusetts, focus on location criteria including proximity to popular attractions like Catamount Ski Area, Bash Bish Falls, and the Berkshire Mountains, as well as properties within walking distance of downtown Great Barrington or near major routes like Route 23 and Route 41 for easy access. Target property features such as 3-4 bedroom homes with outdoor spaces, fireplaces, mountain or pastoral views, and amenities like hot tubs or game rooms that appeal to weekend getaway seekers and seasonal visitors. Conduct pricing analysis by researching comparable Airbnb and VRBO listings in the Southern Berkshires region, analyzing seasonal rate fluctuations with peak pricing during fall foliage season (September-October) and summer months, while considering average daily rates of $200-400 depending on property size and amenities. Perform competition research by studying existing STR listings within a 10-mile radius, identifying gaps in the market such as pet-friendly properties or luxury accommodations, and analyzing occupancy rates and guest reviews on platforms like AirDNA and Mashvisor. Utilize tools and resources including the Town of Egremont's zoning regulations and STR permit requirements, Massachusetts STR tax obligations, local real estate platforms like Berkshire County MLS, tourism data from Berkshire Visitors Bureau, and market analysis tools like Rabbu or AllTheRooms to assess demand patterns and revenue potential in this rural Berkshire County market.

To obtain an Airbnb/STR permit in Egremont, Massachusetts, you must first contact the Egremont Building Department or Town Clerk's office at Town Hall located at 171 Egremont Plain Road to inquire about short-term rental regulations, as the town may have adopted local bylaws governing STRs around 2019-2021. You'll likely need to submit an application form along with a site plan showing parking areas, septic system information, and proof of adequate water supply. Required documents typically include a copy of your deed or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, and contact information for a local property manager if you're not residing on-site. The application fee is estimated at $100-300, with annual renewal fees around $50-150. You must also comply with Massachusetts state lodging regulations, which may require registration with the Department of Revenue for tax collection purposes and adherence to building and fire safety codes including smoke and carbon monoxide detectors in all sleeping areas. The approval timeline is typically 30-60 days depending on completeness of application and any required inspections by the building inspector or fire department. Egremont-specific requirements may include limits on the number of guests, designated parking spaces, waste management plans, and maintaining quiet hours to preserve the rural character of this Berkshire County community.

Short-term rentals (STRs) are legal in Egremont, Massachusetts, but operate under state regulations and local oversight as of 2024. Massachusetts requires STR operators to register with the state, collect and remit room occupancy taxes, and comply with safety standards including smoke and carbon monoxide detectors. Egremont, a small Berkshire County town, does not appear to have enacted specific local STR ordinances beyond state requirements, allowing properties to operate as vacation rentals subject to zoning compliance and health regulations. The town likely requires STRs to conform to residential zoning districts and may require local permits or inspections. Recent Massachusetts legislation from 2018-2019 established the statewide framework requiring registration and taxation, while giving municipalities authority to impose additional local restrictions. Property owners in Egremont must register with the Massachusetts Department of Revenue, maintain liability insurance, and ensure compliance with building and fire codes, but the town has not implemented the stricter regulations seen in larger Massachusetts municipalities like Boston or Cambridge.

The best areas for Airbnb investment in Egremont, Massachusetts are the neighborhoods near Mount Washington State Forest and the Bash Bish Falls area, which attract year-round outdoor enthusiasts for hiking, camping, and waterfall tourism, particularly during peak foliage season from September to October. The historic village center around Route 23 offers charm for visitors exploring the Berkshire region's cultural attractions, with proximity to Tanglewood and Jacob's Pillow drawing summer tourists. Properties near the New York border along Route 41 benefit from overflow demand from nearby luxury destinations like Millbrook and Hillsdale, capturing visitors seeking more affordable accommodations while accessing premium Berkshire County experiences. The area around Prospect Lake provides seasonal appeal for families and groups seeking lakefront recreation, while locations near local farms and the Mount Everett area capitalize on agritourism and fall foliage tourism that peaks from late September through mid-October, with these rural settings offering the authentic New England countryside experience that drives consistent bookings from Boston and New York City visitors year-round.

In Egremont, Massachusetts, Airbnb hosts are subject to both state and local lodging taxes. The Massachusetts state room occupancy excise tax is 5.7% on rentals under 90 consecutive days, collected on the total rent charged including service fees. Additionally, Egremont imposes a local room occupancy tax of 6% as part of Berkshire County's tourism assessment. These taxes are typically collected by Airbnb directly from guests at the time of booking for participating hosts, with Airbnb remitting payments monthly to the Massachusetts Department of Revenue and local tax authorities. Hosts not using Airbnb's collection service must register with the state, collect taxes from guests, and file monthly returns by the 20th of the following month. The combined effective tax rate is approximately 11.7% on short-term rental stays. Exemptions may apply for rentals to permanent residents lasting more than 90 consecutive days, certain government employees on official business, and stays paid for by charitable organizations, though documentation requirements apply for claiming exemptions.

Starting an Airbnb in Egremont, Massachusetts requires approximately $485,000-$565,000 in total initial investment. Property purchase costs average $425,000-$475,000 based on median home prices in the Berkshires region as of 2023-2024. Furnishing a 2-3 bedroom property runs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and décor to create an appealing guest experience. Initial setup costs total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic amenities. Permits and fees include a Massachusetts lodging license ($50), local business permit ($100-$300), and potential zoning compliance costs ($500-$1,500). Insurance premiums for short-term rental coverage cost $2,000-$3,500 annually. Monthly utilities average $200-$350 for electricity, gas, water, internet, and cable. First six months operating costs include utilities ($1,200-$2,100), cleaning services ($1,800-$3,000), supplies and maintenance ($1,000-$1,500), platform fees to Airbnb and VRBO ($2,000-$4,000 assuming 50% occupancy), and marketing expenses ($500-$1,000).

Airbnb properties in Egremont, Massachusetts, typically generate annual revenues of $15,000-$35,000 for seasonal properties and $8,000-$18,000 for year-round rentals, with occupancy rates averaging 45-65% during peak summer and fall foliage seasons. Operating expenses generally range from 35-50% of gross revenue, including property management fees (10-20%), cleaning costs ($75-$125 per turnover), utilities ($200-$400 monthly), insurance ($1,200-$2,500 annually), and maintenance ($2,000-$4,000 yearly). Properties near popular attractions like Catamount Ski Area or within walking distance of downtown Egremont command premium rates of $150-$300 per night compared to $80-$180 for standard properties. Net profit margins typically range from 15-35% for well-managed properties, with success factors including professional photography, responsive guest communication, proximity to Berkshire County attractions, and seasonal pricing optimization that capitalizes on summer tourism and fall foliage periods. Properties that offer unique amenities like hot tubs, fire pits, or pet-friendly accommodations often achieve 20-30% higher booking rates and can maintain profitability even with the area's relatively short peak season from June through October.

Airbnb investments in Egremont, Massachusetts typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the town's proximity to popular Berkshire County attractions like Tanglewood and ski resorts. Properties in this rural market, with average acquisition costs of $350,000-$500,000, can achieve profitability within 18-24 months when targeting seasonal visitors during summer music festivals and fall foliage periods. The limited inventory of short-term rentals in Egremont creates less competition compared to nearby Great Barrington or Lenox, allowing well-positioned properties to command $150-$250 per night during peak seasons (June-October) and $80-$120 during off-peak periods. Investors typically see break-even on initial capital investments within 2-3 years, with annual gross revenues of $25,000-$45,000 for a typical 2-3 bedroom property, though success heavily depends on property condition, marketing effectiveness, and seasonal demand fluctuations in the Berkshires tourism market.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Egremont, Massachusetts. Local real estate agents serving the Berkshire County area include Berkshire Property Agents, Guido & Associates Real Estate, and Harsch Associates Real Estate who have experience with vacation rental properties in the region. National services like Awning, RedAwning, and Vacasa provide market analysis and property management services for Airbnb investments in the Berkshires. AirDNA and Mashvisor offer data analytics specifically for short-term rental markets including rural Massachusetts towns like Egremont. Local property management companies such as Berkshire Vacation Rentals and Great Barrington-based vacation rental specialists can assist with both acquisition and ongoing management of Airbnb properties in this scenic area near the New York border.