Allegheny County, Pennsylvania Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Allegheny County, Pennsylvania?

Short-term rentals through platforms like Airbnb and VRBO have become increasingly popular in Allegheny County, Pennsylvania in recent years. However, property owners looking to start a short-term rental business need to be aware of the various regulations at the county and municipal levels.

Starting a Short-Term Rental Business in Allegheny County

To legally operate a short-term rental in Allegheny County, owners must:

• Register the property and obtain an occupancy permit from the local municipality
• Register and pay the Allegheny County Hotel Room Rental Tax (currently 7%)
• Register with the Pennsylvania Department of Revenue for a Sales, Use & Hotel Occupancy Tax License and remit the 6% state hotel occupancy tax (Airbnb collects and remits this on behalf of hosts)
• Ensure the property is properly zoned for short-term rentals
• Meet building code requirements which may include sprinklers, emergency exits, fire alarms, etc.
• Obtain proper insurance coverage for a short-term rental business

Some municipalities within Allegheny County have additional restrictions. For example, Shaler Township limits overnight occupancy to 2 people per bedroom plus 2 additional people, with a maximum of 8 guests total.

Property owners on forums like BiggerPockets have noted that the Cranberry/Wexford area is attractive for short-term rentals but stress the importance of understanding the regulations. One owner shared: "Cranberry/Wexford are very nice areas to own property in. I don't personally know how a short-term rental holds up, but I can try and connect you with a property manager."

While starting a short-term rental involves navigating various county and municipal rules, Allegheny County has taken steps to streamline the process. In 2016, the county amended its hotel tax ordinance to allow booking agents like Airbnb to collect and remit the tax on behalf of hosts. The county is also exploring creating a one-stop-shop on its website to help owners access resources related to home repairs and lead abatement.

Overall, with proper research and compliance with local regulations, operating a short-term rental can be a viable business in Allegheny County. Owners should carefully review the rules for their specific municipality and consult with local officials as needed. Online forums can also provide helpful insights from others who have gone through the process.

Short-Term Rental Licensing Requirements in Allegheny County

Property owners looking to operate a short-term rental in Allegheny County must obtain the proper licenses and permits. The specific requirements vary by municipality, but generally include:

1. Registering the property with the local municipality and obtaining an occupancy permit
2. Applying for a rental permit annually
3. Undergoing a property inspection every 3 years to ensure the unit meets building code and safety standards
4. Registering with the Pennsylvania Department of Revenue for a Sales, Use & Hotel Occupancy Tax License
5. Registering and paying the 7% Allegheny County Hotel Room Rental Tax (in addition to the 6% state hotel occupancy tax)

To apply for a rental permit in the City of Pittsburgh, owners must submit the following to the Department of Permits, Licenses and Inspections (PLI):

1. Completed rental permit application
2. Proof of identification
3. Copy of occupancy permit (if applicable)
4. Rental property address and number of units
5. Owner name and contact information
6. Application fee (to be determined)

The City is still finalizing the fee structure for rental permits, which will be included in PLI's 2024 fee schedule pending City Council approval. Permits will be valid for one year and must be renewed annually.

Once a completed application is submitted, the property will be scheduled for an inspection to verify it meets the standards of the International Property Maintenance Code. This includes having functional heating, plumbing, and a structurally sound building free of hazards. If code violations are found, the owner will receive a notice detailing the issues and a timeframe to make repairs.

Failure to obtain or renew the required rental permit can result in penalties of $500 per unit per month in Pittsburgh. Operating an unlicensed short-term rental in violation of municipal ordinances may result in additional fines.

The new rental registration and permitting process in Pittsburgh is expected to launch in early 2024, though the exact timeline is still being determined. Other municipalities in Allegheny County may have separate rental licensing requirements and fees that STR owners must follow.

It's crucial for short-term rental operators to carefully research the rules for their municipality and allow ample time to complete the registration, inspection, and licensing process. With the proper permits and diligence in maintaining a safe rental, an STR can be a successful business venture in Allegheny County.

Required Documents for Allegheny County Short-Term Rentals

To legally operate a short-term rental in Allegheny County, property owners must obtain and submit the following documents:

1. Occupancy Permit - This permit from the local municipality certifies that the property meets building code standards and is approved for occupancy. It is obtained through the municipal building department after an inspection.
2. Zoning Approval - Short-term rentals must be allowed under the property's zoning designation. Owners should check with their municipal zoning office to confirm the property is zoned for STRs and obtain written approval.
3. Business License - STRs are considered businesses and must have a business license or permit from the municipality. This usually involves filling out an application and paying a fee to the municipal licensing department.
4. Hotel Room Rental Tax Account - STR operators are required to register for an account with the Allegheny County Treasurer's Office to collect and remit the 7% Hotel Room Rental Tax. This is done by submitting a Hotel Tax Account Application to the Treasurer's Special Tax Division.
5. Sales, Use & Hotel Occupancy Tax License - In addition to the county hotel tax, STRs must pay the 6% Pennsylvania Hotel Occupancy Tax. Operators need to register with the PA Department of Revenue for a Sales, Use & Hotel Occupancy Tax License. Airbnb collects and remits this tax on behalf of its hosts.
6. Rental License - Some municipalities require STRs to have a rental license, which must be renewed annually. For example, Pittsburgh's rental license involves submitting an application to the Department of Permits, Licenses, and Inspections, paying a fee, and passing a safety inspection.
7. Insurance Policy - While not legally required, it's highly recommended that STR operators obtain an insurance policy specifically for short-term rentals. Standard homeowners insurance often does not cover commercial STR activity.

By obtaining these documents and licenses, short-term rental owners can ensure they are operating legally and avoid potential fines or penalties. Municipal and county officials can provide guidance on the specific requirements for each community.

Allegheny County Short-Term Rental Taxes

Short-term rental operators in Allegheny County are required to collect and remit several types of taxes:

1. Pennsylvania Hotel Occupancy Tax - 6% of the listing price, including any cleaning fees, for stays under 30 nights. This tax is administered by the Pennsylvania Department of Revenue and applies to all short-term rentals across the state.
2. Allegheny County Hotel Room Rental Tax - An additional 7% tax on the listing price and fees for stays under 30 nights. This county-level tax is on top of the 6% state hotel occupancy tax, for a total of 13%. It is collected by Allegheny County.
3. Local Sales Tax - Allegheny County levies a 1% local sales tax that the state collects in addition to the state sales tax. This applies to short-term rentals as well and is based on the listing price and fees.

So in total, short-term rentals in Allegheny County are subject to a 14% tax rate - 6% to the state, 7% to the county, and 1% local sales tax.

Platforms like Airbnb collect and remit these taxes on behalf of hosts in Allegheny County. If renting through another platform that doesn't collect taxes, the host is responsible for collecting the 14% in taxes from guests and filing them with the appropriate authorities.

Hosts may be able to deduct expenses to reduce their rental income tax liability. Potential deductions include:

1. Mortgage interest
2. Property taxes
3. Rental insurance
4. Cleaning and maintenance costs
5. Utilities paid by the host
6. Depreciation of furniture and equipment used in the rental

As always, it's best to consult with a tax professional to determine which deductions apply to your short-term rental business. Proper record-keeping of income and expenses is essential for tax purposes.

By understanding the tax obligations of operating a short-term rental in Allegheny County and taking allowable deductions, hosts can stay compliant and maximize their rental profits.

Pennsylvania State-Wide Short-Term Rental Rules

While Pennsylvania does not have many state-level regulations for short-term rentals beyond taxes, there are a few key requirements that Allegheny County hosts need to be aware of:

1. Hotel Occupancy Tax - Pennsylvania charges a 6% hotel occupancy tax on stays less than 30 days. This applies to all short-term rentals across the state, including those in Allegheny County.
2. Additional Local Tax - Allegheny County levies an extra 1% local hotel tax on top of the 6% state tax, for a total of 7%. The state collects this tax and remits it to the county.
3. Tax Registration - Before collecting taxes, short-term rental operators must register with the Pennsylvania Department of Revenue for a Sales, Use, and Hotel Occupancy Tax License. This can be done online through the Pennsylvania Online Business Entity Registration (PA-100) at mypath.pa.gov.
4. Tax Collection - Hosts are responsible for collecting the 7% in taxes from guests and filing them with the state, unless they use a booking platform like Airbnb that collects and remits taxes on their behalf. Hosts should check with their platform to see who is responsible for the taxes.
5. Tax Reporting - Income from short-term rentals less than 30 days should be reported on the PA Personal Income Tax Schedule C. Rental income from stays 30 days or more uses Schedule E.
6. Safety Regulations - While not specified in state law, short-term rentals may need to meet certain safety requirements, such as having smoke detectors, fire extinguishers, and carbon monoxide detectors. Hosts should check their local ordinances for any safety rules.

Beyond taxes and basic safety, Pennsylvania does not impose any state-wide regulations on short-term rentals. However, rules can vary significantly between municipalities. Allegheny County hosts need to carefully review the ordinances in their specific borough or township to ensure they are in full compliance with local laws, such as zoning, permits, licenses, and additional taxes.

By understanding and following these state and local requirements, short-term rental operators in Allegheny County can run a successful and fully compliant business. Consulting with a local tax professional and municipal officials is the best way for hosts to ensure they are meeting all their regulatory obligations.

Does Allegheny County Strictly Enforce STR Rules?

Based on discussions among Airbnb hosts on Reddit and BiggerPockets, Allegheny County appears to be relatively strict in enforcing its short-term rental regulations compared to other cities and counties. The consensus is that Allegheny County, and the City of Pittsburgh in particular, have been cracking down more on STRs in recent years.

One Redditor who works in short-term rental compliance commented that when Pittsburgh listings come up, it's almost always because the host is not properly registered or licensed. They noted an uptick in posts from hosts trying to navigate the city's new, stricter rental registration requirements that were passed in 2022.

Another Reddit thread discussed how Pittsburgh City Council has been working to tighten regulations on Airbnbs, with some council members wanting to reduce the total number of STRs allowed in the city. Hosts expressed frustration with the increasing red tape and oversight.

While some hosts on BiggerPockets mentioned operating STRs in the Pittsburgh area, they cautioned that it's getting more difficult to fly under the radar. With the county now requiring STRs to register and pay hotel taxes, and Pittsburgh implementing new permitting and inspection rules, the risks of operating an unlicensed rental have increased.

So in summary, Allegheny County and Pittsburgh do not have a reputation for being particularly Airbnb-friendly. The local governments have taken deliberate steps to regulate the industry and are fairly strict about enforcing registration, tax collection, and health and safety requirements.

Hosts can still operate successful STRs in the county, but doing so requires carefully following all the applicable rules and regulations. Attempting to skirt the law is likely to catch up with hosts eventually as enforcement has ramped up. Allegheny County's approach to STRs prioritizes compliance and community impact over a hands-off, pro-Airbnb stance.

How to Start a Short-Term Rental Business in Allegheny County

Starting a short-term rental business in Allegheny County requires careful planning and compliance with local regulations. Follow these steps to legally operate your STR:

1. Check zoning and property restrictions - Determine if your property is zoned for short-term rentals and allowed under any HOA rules, lease agreements, or other restrictions. Contact your local zoning office for guidance.
2. Register your business - Choose a business structure (sole proprietorship, LLC, etc.) and register your STR with the Pennsylvania Department of State. Apply for an Employer Identification Number (EIN) from the IRS.
3. Obtain licenses and permits - Apply for a business license and rental permit from your local municipality. In Pittsburgh, submit a rental permit application to the Department of Permits, Licenses, and Inspections (PLI). Schedule an inspection to ensure your property meets safety and maintenance standards.
4. Register to collect taxes - Register for a Sales, Use & Hotel Occupancy Tax License with the Pennsylvania Department of Revenue to collect the 6% state hotel occupancy tax. Also register with the Allegheny County Treasurer's Office to collect the 7% county hotel tax.
5. Prepare your property -Furnish and stock your rental with essential amenities, and consider hiring a professional photographer to take high-quality listing photos. Install smoke detectors, fire extinguishers, and carbon monoxide detectors to meet safety requirements.
6. Create a stellar listing - Sign up with popular STR platforms like Airbnb and VRBO, and craft an attractive listing with an accurate description, quality photos, and a competitive nightly rate. Establish house rules and a rental agreement outlining guest expectations.
7. Automate your rental - Use tools like smart locks, noise monitoring devices, and automated messaging to streamline your operations. Consider hiring a co-host or property manager if you need help managing bookings and guest communication.
8. Promote your listing - Share your listing on social media and travel websites to attract guests. Encourage satisfied guests to leave reviews, and promptly respond to any negative feedback to maintain a good reputation.
9. Keep accurate records - Maintain organized records of all income and expenses related to your STR business. Use accounting software to track revenue and costs, and hire a tax professional to ensure you're properly reporting your rental income.
10. Be a responsible host - Follow all local regulations, pay taxes on time, and be a good neighbor by ensuring your guests respect community rules regarding noise, parking, and trash disposal. Maintain open communication with your guests and quickly address any issues that arise.

By following these steps and prioritizing compliance and guest satisfaction, you can build a successful short-term rental business in Allegheny County. Stay informed about any changes to local STR regulations, and consult with legal and tax professionals as needed to ensure your business remains in good standing.

Who to Contact in Allegheny County about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental rules or zoning for your property in Allegheny County, here are some key contacts and resources:

Allegheny County Treasurer's Office - Contact the Treasurer's Office at (412) 350-4100 or treasurersoffice@alleghenycounty.us for questions about registering and paying the county's 7% hotel room rental tax.

City of Pittsburgh Department of Permits, Licenses and Inspections (PLI) - In Pittsburgh, contact PLI at (412) 255-2175 or pliapptech@pittsburghpa.gov for information on the city's rental registration and permit process. More details can be found on the PLI Rental Registration website.

Municipal Zoning Offices - For properties outside the city of Pittsburgh, contact your local municipality's zoning office to confirm your property is zoned for short-term rentals. Shaler Township, for example, has a short-term rental permit application with local requirements.

Allegheny County Health Department - Reach out to the Health Department at (412) 687-2243 with any questions about health and safety requirements for short-term rentals, such as occupancy limits.

In addition to government contacts, connecting with other local short-term rental hosts can be a valuable way to get advice and learn about regulations. Some community resources for Allegheny County hosts include:

1. Airbnb Host Clubs - Airbnb Host Clubs are local communities of hosts who meet online and in-person to share tips and discuss hosting. While there isn't an official club for Pittsburgh, you can check the Airbnb Resource Center to see if one forms in the future.
2. BiggerPockets Pittsburgh Discussions - BiggerPockets has forum discussions on short-term rental investing in Pittsburgh where you can connect with other local hosts and investors.
3. AirHostsForum - The AirHostsForum is an online community for Airbnb hosts worldwide to connect and discuss various hosting topics, including local regulations.

By utilizing these government and community resources, you can better understand the short-term rental regulations in your part of Allegheny County and connect with other hosts for support. Staying informed on local rules is essential for operating your rental legally and avoiding any penalties.

What Do Airbnb Hosts in Allegheny County on Reddit and BiggerPockets Think about Local Regulations?

Hosts on Reddit and BiggerPockets have shared their experiences and thoughts on short-term rental rules in Allegheny County. Here are some key takeaways from local hosts:

In a Reddit thread discussing Pittsburgh City Council's plans to revamp Airbnb regulations, one commenter noted: "STR operators are a selfish and entitled group of people. Many of them are being confronted with the reality that for many years they have damaged the community around them so they could enrich themselves, tricked by multi-billion-dollar corporations into a cycle of raising housing costs and limiting housing which causes them to continue STR'ing so they can afford rising housing costs in an increasingly limited housing market."

On the BiggerPockets forums, a new host looking to start an STR in the Cranberry/Wexford area asked about regulations and roadblocks. While no one directly responded about rules, the lack of replies warning about strict enforcement could suggest the suburbs are less regulated than the city.

After a shooting at a Pittsburgh Airbnb in April 2022, the city council expedited a bill to regulate STRs. In the Reddit discussion, one user criticized the move as a "permitting cash grab to obtain information already easily available from Airbnb, VRBO, etc." Another said "Airbnb/VRBO is quickly becoming the Uber/Lyft of the post pandemic world. It seems like they are under attack everywhere and for increasingly ridiculous reasons."

A prospective host on BiggerPockets asked about terminating a Section 8 lease to convert a property to a short-term rental. While not directly related to STR rules, it highlights the impact of Airbnbs on the local housing market.

Overall, it seems hosts are feeling increased pressure from local government, especially in the city of Pittsburgh, to regulate short-term rentals. Some see it as government overreach, while others argue STRs have negatively impacted housing affordability and neighborhood character.

The suburbs appear to have looser rules than the city based on the lack of discussion about strict regulations. However, as short-term rentals continue to proliferate, hosts across Allegheny County will need to stay informed on evolving local ordinances that could affect their business.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.