Buffalo Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Buffalo New York?

Buffalo, New York has enacted regulations for short-term rentals (STRs) like Airbnb and VRBO to ensure they operate safely and don't negatively impact neighborhoods. In November 2019, the city passed an ordinance requiring STR hosts to register their properties through the Department of Permits and Inspections Services. The goal is to allow STRs while maintaining neighborhood character and a level playing field with traditional lodging providers.

The ordinance establishes a licensing and regulatory framework for STRs, including occupancy limits, parking requirements, safety standards, and tax collection. It also differentiates between owner-occupied and non-owner occupied rentals, with the latter facing stricter rules and higher fees.

Since the ordinance took effect, Buffalo has seen a steady increase in STR registrations. As of March 2024, the city had issued over 1,200 licenses, generating nearly $500,000 in annual revenue. However, officials estimate there are still thousands of unregistered STRs operating illegally.

To address this, the Common Council recently increased fines for unlicensed rentals and established an escalating penalty structure for repeat violations. The city has also placed temporary moratoriums on new STR permits in certain districts due to concerns about housing affordability and community character.

Despite these challenges, Buffalo remains relatively Airbnb-friendly compared to other major New York cities. While New York City prohibits rentals under 30 days unless the host is present, Buffalo allows both owner-occupied and non-owner occupied STRs with proper licensing.

Starting a Short Term Rental Business in Buffalo

To start a short-term rental business in Buffalo, hosts must first review the city's STR ordinance and ensure their property complies with zoning requirements. Only one- and two-family homes can be used as STRs, as they are prohibited in apartment buildings and townhouse condos whose HOAs prevent it.

Hosts need to determine if their rental will be owner-occupied (where the owner lives on-site) or non-owner occupied, as this impacts licensing fees and procedures. Owner-occupied STRs outside of N-4-30 and N-4-50 zones have lower fees, while non-owner occupied rentals require a special use permit.

Before applying for a license, hosts should:

• Check their property's zoning district and applicable regulations
• Register with the New York State Department of Taxation and Finance
• Designate a local property manager within 30 miles available 24/7 if the owner resides outside Erie County

It's important to note that STRs are not permitted in all areas of Buffalo. In addition to the N-4-30 and N-4-50 single-family zones, certain districts like Allentown have placed temporary moratoriums on new STR permits due to quality of life concerns.

Hosts should also be aware of the city's occupancy limits, which restrict STRs to 2 people per bedroom plus 2 additional occupants. This means a 2-bedroom rental can accommodate a maximum of 6 guests. Exceeding these limits can result in fines and license revocation.

Parking is another key consideration. STRs must provide on-site parking per the underlying zoning, which varies by district. In some areas, this may require a driveway or garage, while in others street parking may suffice. Hosts should check with the city to confirm their property meets parking requirements.

Finally, hosts need to ensure their rental meets building and safety codes. This includes installing interconnected smoke and carbon monoxide alarms, providing fire extinguishers, and posting emergency contact numbers and exit diagrams. The city will inspect the property before issuing a license to verify compliance.

Short Term Rental Licensing Requirement in Buffalo

All STRs in Buffalo must obtain an annual license from the city. The licensing process and fees differ based on the rental's occupancy status:

• Owner-occupied STRs outside N-4-30/N-4-50 zones:
• First-time registration fee decreased to $400 from $500
• Annual renewal fee increased to $200 from $75

Non-owner occupied STRs:

• Must file for special use permit
• First-time registration fee decreased to $650 from $1000
• Annual renewal fee increased to $400 from $150

STRs in N-4-30 and N-4-50 single-family zones face additional restrictions. They are not entirely prohibited but require a zoning variance, meaning a public hearing and community input. The city wants to preserve the residential character of these neighborhoods.

To obtain a license, hosts must submit a business license application to the Department of Permit & Inspection Services along with several required documents (detailed in the next section). The city will then schedule an inspection to verify compliance with building and safety codes.

If the property passes inspection and meets all requirements, the city will issue an annual STR license. This license must be prominently displayed in the rental unit and included in any online listings. Hosts must renew their license each year and pay the applicable renewal fee.

It's important to note that operating an STR without a license is illegal and subject to fines. First-time offenders face a $500 penalty, which doubles for subsequent violations. Three or more violations in a 12-month period can result in license revocation and ineligibility for future permits.

Required Documents for Buffalo Short Term Rentals

To apply for an STR license, hosts must submit a business license application to the Department of Permit & Inspection Services that includes:

• Government-issued photo ID
• Two pieces of mail proving residency
• Signed affidavit attesting to no pending housing court proceedings
• Detailed rental property information
• Floor plans and site map
• Owner and agent contact details
• Proof of required safety features like smoke/CO alarms
• Application/renewal fee based on occupancy type

The city will then schedule an inspection to verify compliance with building and safety codes. Common requirements include interconnected smoke/CO detectors and fire alarms. Basements and attics face extra scrutiny.

In addition to these documents, non-owner occupied STRs must also submit:

• Special use permit application
• Proof of property ownership or landlord approval
• Site plan showing parking and occupancy areas
• Neighborhood impact statement

These additional requirements are meant to ensure non-owner occupied STRs don't negatively affect the surrounding community. The special use permit process includes a public hearing where neighbors can voice concerns or support for the proposed rental.

Once all documents are submitted and the property passes inspection, the city will issue an annual STR license. Hosts must renew their license each year and update their application if any information changes (e.g. ownership, local contact, etc.).

It's crucial that hosts maintain accurate records and promptly respond to any city requests for information. Failure to do so can result in fines or license revocation. The city may also conduct unannounced inspections to ensure ongoing compliance with STR regulations.

Buffalo Short Term Rental Taxes

STR operators in Buffalo must collect and remit the following taxes:

• 3% Erie County occupancy tax on STR revenue (as of January 2024)
• 8.75% combined New York State (4%) and Erie County (4.75%) sales tax

The new county bed tax levels the playing field between STRs and hotels. It's estimated to generate $1-2 million annually from the roughly 2,000 vacation rentals in Erie County.

Hosts listing on platforms like Airbnb and Vrbo may have occupancy taxes collected and remitted on their behalf. However, those renting independently are responsible for charging, collecting, and submitting these taxes themselves.

To remit taxes, hosts must first register with the New York State Department of Taxation and Finance. They will then receive a Certificate of Authority, which allows them to collect and remit sales tax.

Occupancy and sales taxes are due quarterly and must be filed online through the state's Online Services system. Late payments are subject to penalties and interest.

It's important for hosts to keep accurate records of all STR revenue and taxes collected. The city or state may audit STR operators to ensure compliance with tax laws. Failure to properly collect and remit taxes can result in significant fines and legal consequences.

Buffalo-wide Short Term Rental Rules

Buffalo's STR ordinance has several city-wide regulations hosts must follow to ensure neighborhood compatibility and guest safety:

• Occupancy limited to 2 people per bedroom plus 2 additional occupants
• On-site parking required per underlying zoning
• Comply with building, fire, noise, and nuisance ordinances
• Designate a local property manager within 30 miles available 24/7
• Post emergency contact numbers and building exit diagrams
• Provide guests with diagram of approved occupancy areas (no basements, attics, etc.)
• Install interconnected smoke/CO alarms and fire extinguishers
• Execute a Hold Harmless Agreement with the city
• No house parties allowed on premises
• Non-owner occupied STRs must maintain a 2-night minimum stay
• Three or more violations in 12 months doubles fines and risks license revocation

These rules apply to all STRs in Buffalo, regardless of location or occupancy type. They are meant to balance the rights of hosts and guests with the needs of the surrounding community.

The occupancy limits and parking requirements ensure STRs don't overcrowd neighborhoods or strain infrastructure. The safety regulations protect guests in case of emergencies. And the noise and nuisance provisions preserve quality of life for permanent residents.

Hosts who violate these rules face significant penalties. First-time offenders can be fined $500, with subsequent violations doubling the penalty. Three or more violations in a 12-month period can result in license revocation and ineligibility for future permits.

The city may also take legal action against STR operators who repeatedly flout the law. In extreme cases, this could include property seizure or criminal charges.

To avoid these consequences, hosts should carefully review Buffalo's STR ordinance and ensure their rental complies with all applicable rules. They should also educate their guests about occupancy limits, parking restrictions, and noise policies.

By following the city's regulations, hosts can help ensure the long-term viability of Buffalo's STR market. This not only benefits individual operators but also supports the broader tourism economy.

Does Buffalo strictly enforce STR rules?

Buffalo appears to be taking a balanced approach to regulating STRs. While the city has established a licensing and regulatory framework, it hasn't banned them outright like some cities.

The goal is to allow STRs while ensuring neighborhood compatibility and a level playing field with hotels.However, there are signs Buffalo is ramping up enforcement. The city estimates there are thousands of unregistered STRs operating illegally. In February 2024, the Common Council increased fines for unlicensed rentals from $75 to $500 and established an escalating penalty structure for repeat violations.

The city has also placed temporary moratoriums on new STR permits in certain districts like Allentown due to concerns about housing affordability and community character. Some hosts worry the stricter rules could stifle Buffalo's STR market growth.

Compared to other major New York cities, Buffalo is relatively Airbnb-friendly. New York City has much stricter rules that prohibit rentals under 30 days unless the host is present. Many Buffalo hosts seem to be operating legally by obtaining required permits. However, some may be skirting the rules, as the city admits its registration numbers are far below the actual number of STRs.

To improve compliance, Buffalo has taken several steps:

• Increased fines and penalties for unlicensed rentals
• Dedicated more staff to STR enforcement
• Launched an online portal for neighbors to report illegal rentals
• Partnered with platforms like Airbnb to remove unlicensed listings
• Conducted proactive outreach to educate hosts about registration requirements

These efforts appear to be paying off. In the first quarter of 2024, the city issued over 200 new STR licenses, a 25% increase from the previous year. It also collected $75,000 in fines from unlicensed operators.

However, challenges remain. Some hosts continue to operate illegally, either out of ignorance or defiance. Others complain that the registration process is too complex and time-consuming.

The city has pledged to streamline its licensing system and provide more resources for hosts. It's also exploring partnerships with third-party vendors to automate compliance monitoring.

Ultimately, the success of Buffalo's STR regulations will depend on striking the right balance between enforcement and education. By working with hosts, platforms, and community stakeholders, the city can create a sustainable framework that benefits all parties.

How to Start a Short Term Rental Business in Buffalo

• Review Buffalo's STR ordinance and zoning requirements to confirm your property is eligible
• Determine if your rental will be owner-occupied or non-owner occupied
• Register with the New York State Department of Taxation and Finance
• Submit a business license application with required documents to Buffalo's Department of Permit & Inspection Services
• Schedule an inspection with the city and remedy any code violations
• Obtain an annual rental license from the city
• Designate a local property manager within 30 miles available 24/7
• Create a listing on platforms like Airbnb or Vrbo
• Collect and remit 3% Erie County occupancy tax and 8.75% state/county sales tax

Starting an STR business in Buffalo requires careful planning and attention to detail. Hosts must navigate a complex web of city, county, and state regulations, as well as platform requirements.

The first step is to review Buffalo's STR ordinance and zoning code to confirm your property is eligible. Only one- and two-family homes can be used as STRs, and they are prohibited in certain districts like Allentown.Next, determine if your rental will be owner-occupied or non-owner occupied. This will impact your licensing fees and application process. Non-owner occupied STRs require a special use permit and face higher fees.

Before applying for a license, register with the New York State Department of Taxation and Finance. This will allow you to collect and remit required occupancy and sales taxes.

Once registered, submit a business license application to Buffalo's Department of Permit & Inspection Services. Include all required documents, such as proof of residency, property details, safety certifications, and fees.

The city will then schedule an inspection to verify compliance with building and safety codes. Remedy any violations promptly to avoid delays in licensing.

After passing inspection, the city will issue your annual STR license. Be sure to renew it each year and update your application if any information changes.If you don't live within 30 miles of your rental, you must designate a local property manager available 24/7. This person will be responsible for handling guest issues and emergencies.

Finally, create a listing on platforms like Airbnb or Vrbo. Be sure to include your license number and occupancy limits in the description.

Don't forget to collect and remit the 3% Erie County occupancy tax and 8.75% state/county sales tax on all STR revenue. Failure to do so can result in significant penalties.

By following these steps and complying with all applicable regulations, you can launch a successful STR business in Buffalo. Just remember to prioritize guest safety, neighborhood compatibility, and tax compliance to avoid legal issues down the road.

Who to contact in Buffalo about Short Term Rental Regulations and Zoning?

For questions about Buffalo's short-term rental regulations and zoning, contact:

Department of Permit & Inspection Services
City Hall, Room 301
65 Niagara Square
Buffalo, NY 14202
Phone: (716) 851-4078 / (716) 851-6583
Fax: (716) 851-4952
Website: https://www.buffalony.gov/339/Permit-Inspection-Services
Email: STR@buffalony.gov

The Department of Permit & Inspection Services is responsible for issuing STR licenses and enforcing the city's rental regulations. They can provide guidance on zoning requirements, application procedures, and inspection standards.

If you have questions about occupancy or sales taxes, contact:

New York State Department of Taxation and Finance
Sales Tax Registration Unit
W A Harriman Campus
Albany, NY 12227
Phone: (518) 485-2889
Website: https://www.tax.ny.gov/bus/st/register.htm

What do Airbnb hosts in Buffalo on Reddit and Bigger Pockets think about local regulations?

On the Bigger Pockets forums, some Buffalo Airbnb hosts have expressed concerns about the city's regulations making it harder to operate STRs, especially in single-family zoned neighborhoods. They worry the stricter rules and permit moratoriums could stifle the growth of Buffalo's STR market16.

However, other local hosts on Reddit seem to be complying with the city's registration, inspection, and tax collection requirements. They note that Buffalo's STR policies are less restrictive than other major cities in New York that have banned short-term rentals outright. Most acknowledge that some level of regulation is needed to address quality of life issues and ensure a level playing field with traditional lodging providers17.

While there is some grumbling about increased fees and fines, Buffalo STR operators generally appear cautiously optimistic about the regulatory environment. The city seems to be striving for a middle ground that balances neighborhood concerns with the economic benefits of home-sharing. Time will tell if Buffalo can maintain this equilibrium as its STR market matures.