Hudson Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Hudson, New York?

Short-term rentals, such as those listed on Airbnb and VRBO, have become increasingly popular in Hudson, New York. However, the city has implemented regulations to ensure these rentals operate legally and safely. This article will explore the specific rules and requirements for short-term rentals in Hudson.

Starting a Short-Term Rental Business in Hudson

Property owners must first register their rental with the City Treasurer's office to legally operate a short-term rental in Hudson and obtain a Certificate of Authority. The registration period for 2024 is from March 1st to March 31st. Failure to register can result in fines and penalties outlined in the Short Term Lodging Tax Code.

In addition to registration, short-term rental owners must adhere to the following requirements:

• The rental must be the owner's primary residence, and they must reside there for at least 50 days per year
• Owners must provide a notarized statement affirming residency and adherence to fire safety codes if renting a space above the 2nd floor
• Copies of the owner's driver's license and utility bill must be submitted
• Documentation of the prior year's total rented nights and estimated nights available for the upcoming year is required
• The owner's Social Security Number (SSN) or Employer Identification Number (EIN) must be provided

Zoning and Occupancy Restrictions

Hudson's zoning laws restrict short-term rentals in certain areas of the city. Rentals are prohibited in non-owner-occupied properties, and there is a limit of one short-term rental per year for these properties, provided they were operating for a year or longer. No new non-owner-occupied units will be permitted.

Occupancy limits are also enforced to ensure guests' safety and minimize the impact on local resources, such as water and wastewater systems. The number of bedrooms listed in the city's assessment records determines the maximum occupancy for each rental.

Taxes and Fees

Short-term rental owners in Hudson are required to pay a 4% per day tax on the rent for the room and any ancillary charges, such as cleaning or linen fees. This tax is paid by the person renting the room to the host, who is then responsible for collecting and remitting the tax to the city.

In addition to the daily tax, there is an application fee of $20 to $100 for registering or renewing a short-term rental.

Enforcement and Penalties

The City of Hudson takes enforcement of short-term rental regulations seriously. Violations can result in fines ranging from $1,000 to $7,500. The city has hired an additional inspector specifically to deal with short-term rentals and ensure compliance with health and safety regulations.

Short-term rentals have become a contentious issue in Hudson, with some residents arguing that they take away from the availability of affordable housing for long-term residents. By implementing these regulations, the city aims to strike a balance between allowing property owners to generate income through short-term rentals while preserving the character and affordability of residential neighborhoods.

Short-Term Rental Licensing Requirement in Hudson

Property owners must obtain a Short-Term Rental License from the City Treasurer's office to legally launch and operate a short-term rental in Hudson. The application process involves submitting various documents, including proof of owner occupancy for at least 50 days per year, a notarized statement affirming residency and adherence to fire safety codes for rentals above the 2nd floor, copies of the owner's driver's license, and utility bill, and documentation of the prior year's total rented nights and estimated nights available for the upcoming year.

Applicants must also provide their Social Security Number (SSN) or Employer Identification Number (EIN). The City Treasurer's office verifies that the property meets zoning requirements and is not on the prohibited buildings list before issuing the license.

The annual registration period for short-term rentals in Hudson is from March 1st to March 31st. Failure to register during this timeframe can result in fines and penalties as outlined in the Short Term Lodging Tax Code. Application and renewal fees range from $20 to $100.

Once a Short-Term Rental License is obtained, the property owner must adhere to occupancy limits based on the number of bedrooms listed in the city's assessment records. They are also required to pay a 4% per day tax on the rent and any ancillary charges, which are collected from the renter and remitted to the city by the host.

The City of Hudson takes enforcement of short-term rental regulations seriously, with violations resulting in fines ranging from $1,000 to $7,500. An additional inspector has been hired specifically to ensure compliance with health and safety regulations for these properties.

Required Documents for Hudson Short-Term Rentals

To successfully register a short-term rental in Hudson, property owners must provide several key documents as part of their application. These documents help the city verify ownership, residency, and adherence to safety regulations.

One of the most important documents is proof of owner occupancy for at least 50 days per year. Acceptable forms of documentation include utility bills, driver's licenses, or notarized statements affirming residency. A notarized statement confirming compliance with fire safety codes is mandatory for rentals above the second floor.

Applicants must also submit a copy of their driver's license and a recent utility bill as additional proof of residency. To help the city understand the scope and impact of the short-term rental, owners are required to provide documentation of the prior year's total number of rented nights and an estimate of the nights available for the upcoming year.

For tax purposes, the primary hosts must provide either their Social Security Number (SSN) or Employer Identification Number (EIN). Estimated nightly rates for the rental must also be disclosed in the application.

If the property was previously registered as a short-term rental, the owner must include their existing LocalGov account number, which can be found on their Certificate of Authority.

Lastly, property owners must acknowledge that they have read and understand the process for recording, reporting, and paying the Lodging Tax associated with their short-term rental.

Failure to provide any of the required documents or information may result in the denial of the short-term rental license and could lead to fines or penalties as outlined in the city's Short Term Lodging Tax Code. By requiring these documents, the City of Hudson aims to ensure that short-term rentals are operated legally, safely, and in compliance with all applicable regulations.

Hudson Short-Term Rental Taxes

In addition to obtaining the necessary permits and adhering to regulations, short-term rental owners in Hudson must also be aware of their tax obligations. The City of Hudson imposes a 4% per day tax on the rent for the room and any ancillary charges, such as cleaning or linen fees. This tax is paid by the person renting the room to the host, who is then responsible for collecting and remitting the tax to the city on a quarterly basis.

If no rentals are made during a quarter, hosts must still submit a report to the city stating that no rentals were made or room tax collected during that period. When a booking service or lodging marketplace, such as Airbnb or VRBO, is used to coordinate the rental, the company providing the service is responsible for collecting and paying the city room tax quarterly. However, if those fees are not collected and/or paid in a timely manner, it is ultimately the property owner's responsibility to pay those fees or work with the booking service to ensure payment.

Failure to comply with these tax requirements can result in penalties and interest as outlined in the Short Term Lodging Tax Code. The penalty for late payments is 5% of the amount of tax due, plus 1% interest for each subsequent month.

Short-term rental owners in Hudson must maintain accurate records of their rental income and expenses, as this information is necessary for both city tax purposes and federal income tax reporting. Owners should consult with a tax professional to ensure they meet all their tax obligations and take advantage of any available deductions.

By understanding and adhering to the tax requirements for short-term rentals, owners can avoid costly penalties and help to maintain a fair and well-regulated rental market in the City of Hudson.

New York Wide Short-Term Rental Rules

New York State has implemented various regulations governing short-term rentals across the state. The New York State Multiple Dwelling Law is the primary legislation regulating these state rentals. This law distinguishes between "Class A" multiple dwellings, which are allocated for permanent residence only (30 consecutive days or more), and "Class B" multiple dwellings, which can be occupied transiently as temporary lodging.

Short-term rentals are generally prohibited in "Class A" buildings, which include most residential multifamily properties. However, this restriction does not apply to "Class B" dwellings, such as hotels, lodging houses, and other properties specifically designed for transient occupancy.

The New York State Multiple Dwelling Law also requires that owners of short-term rental properties in "Class B" dwellings obtain a certificate of occupancy or other required permits before operating. Failure to comply with these regulations can result in fines and legal action.

Additionally, New York State requires short-term rental hosts to collect and remit state sales tax, as well as any applicable local taxes, such as occupancy taxes. Hosts must register with the New York State Department of Taxation and Finance to obtain a sales tax certificate of authority before commencing their short-term rental business.

It is important to note that local governments in New York, such as New York City, may impose additional regulations on short-term rentals within their jurisdictions. These local laws can be more restrictive than the state-wide regulations and may include zoning restrictions, permit requirements, and occupancy limits.

Short-term rental hosts in New York must familiarize themselves with both state and local regulations to ensure compliance and avoid potential penalties. This may involve obtaining necessary permits, registering with tax authorities, and adhering to specific occupancy and safety requirements.

Does Hudson Strictly Enforce STR Rules?

Based on discussions in real estate forums like Bigger Pockets and Reddit, it appears that Hudson does indeed strictly enforce its short-term rental regulations compared to many other cities. The general consensus is that Hudson is not particularly Airbnb-friendly due to the stringent rules and active enforcement.

Several hosts on these forums have reported receiving fines and cease-and-desist orders for operating short-term rentals that do not comply with the city's requirements, such as the host not being present during the rental period or renting out an entire unit in a multi-family building. The city has hired additional inspectors specifically to identify and penalize illegal short-term rentals.

While some hosts may still attempt to operate under the radar, the risks of getting caught and facing substantial penalties are high. Many former hosts have expressed frustration with the regulations, arguing that they rely on short-term rental income and feel the rules unfairly target smaller, individual operators rather than larger commercial interests.

Overall, the prevailing opinion is that operating a short-term rental in Hudson that does not strictly adhere to the city's rules is risky. The city appears committed to preserving its housing stock for long-term residents and maintaining the character of its neighborhoods, even if it means cracking down hard on Airbnb and other short-term rental platforms. Hosts looking to enter the market in Hudson should be prepared to follow the regulations to the letter or face potentially serious consequences.

How to Start a Short-Term Rental Business in Hudson

If you're interested in starting a short-term rental business in Hudson, New York, follow these steps to ensure compliance with local regulations and set yourself up for success:

1. Research and understand Hudson's short-term rental regulations, including zoning restrictions, permit requirements, and occupancy limits.
2. Determine if your property is eligible for short-term rentals based on the city's requirements, such as being the owner's primary residence and adhering to fire safety codes.
3. Register your short-term rental with the City Treasurer's office during the annual registration period (March 1st to March 31st) and obtain a Certificate of Authority.
4. Gather and submit the required documentation, including proof of owner occupancy, a notarized statement affirming residency, copies of your driver's license and utility bill, and documentation of the prior year's rental activity and estimated availability for the upcoming year.
5. Provide your Social Security Number (SSN) or Employer Identification Number (EIN) for tax purposes.
6. Ensure your property meets the city's occupancy limits based on the number of bedrooms listed in the assessment records.
7. Prepare your property for guests by thoroughly cleaning, furnishing, and stocking it with necessary amenities and supplies.
8. Create a comprehensive listing on popular short-term rental platforms like Airbnb and VRBO, including high-quality photos, detailed descriptions, and accurate information about amenities and house rules.
9. Set competitive rates based on the local market and your property's unique features and location.
10. Establish a system for managing bookings, communicating with guests, and coordinating cleaning and maintenance between stays.
11. Collect and remit the required 4% per day tax on rent and any ancillary charges to the city on a quarterly basis.
12. Maintain accurate records of your rental income and expenses for tax purposes and to ensure compliance with city regulations.
13. Stay informed about any changes to Hudson's short-term rental regulations and adapt your business practices accordingly.

By following these steps and adhering to Hudson's short-term rental regulations, you can establish a successful and compliant vacation rental business in this popular upstate New York destination.

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

If you have questions or concerns about short-term rental regulations and zoning in Hudson, New York, there are several key contacts you should reach out to:

1. City Treasurer's Office: The City Treasurer's office handles the registration and tax collection for short-term rentals in Hudson. You can contact them at (518) 828-0212 or email taxinfo@cityofhudson.org for inquiries about registering your short-term rental, obtaining a Certificate of Authority, and paying the required lodging taxes.

2. Code Enforcement Department: For questions related to building codes, safety requirements, and inspections for short-term rentals, contact the Code Enforcement Department. The Code Enforcement Officer, Craig Haigh, can be reached at (518) 828-3133 or via email at hudsonceo@cityofhudson.org.

3. Zoning Board of Appeals: If you need information about zoning regulations or want to apply for a variance related to your short-term rental property, contact the Zoning Board of Appeals. The Zoning Board Secretary can be reached at (518) 828-1030.

4. City Clerk's Office: For general inquiries about city ordinances, licenses, and permits related to short-term rentals, you can contact the City Clerk's office at (518) 828-1030 or email cityclerk@cityofhudson.org.

5. Mayor's Office: If you have broader concerns or questions about the impact of short-term rentals on the community, you can reach out to the Mayor's office. Contact the Mayoral Aide at (518) 828-7217 or email mayoralaide@cityofhudson.org.

You can get the most accurate and up-to-date information about short-term rental regulations and zoning in Hudson by contacting the appropriate department or official. It's essential to work closely with these offices to ensure your short-term rental operates legally and complies with all applicable rules and requirements.

What Do Airbnb Hosts in Hudson on Reddit and Bigger Pockets Think about Local Regulations?

Based on discussions in real estate forums like Bigger Pockets and Reddit, it appears that Airbnb hosts in Hudson have mixed feelings about the local short-term rental regulations.

Some hosts express frustration with the strict rules and active enforcement. They argue that the regulations unfairly target smaller, individual operators rather than larger commercial interests. These hosts feel that short-term rentals allow them to afford living in the communities they love and that the city should be more supportive of their efforts.

On the other hand, some hosts acknowledge the need for regulation to preserve housing affordability and neighborhood character. They recognize that an unchecked proliferation of short-term rentals can exacerbate housing shortages and drive up prices for long-term residents. These hosts generally support reasonable regulations, such as requiring hosts to live on-site and limiting the number of rental days per year.

A common theme among hosts is the desire for clearer communication and guidance from the city regarding compliance with the regulations. Many feel that the rules can be confusing or inconsistently enforced, leading to uncertainty and anxiety for hosts trying to operate legally.

Overall, while opinions vary, most hosts seem to accept that some level of regulation is necessary and inevitable. However, they hope that the city will work with them to strike a balance that allows responsible short-term rental activity while prioritizing the needs of long-term residents and the community.

Disclaimer: While we here at BNBCalc strive to keep all of our city 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 city 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.