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

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

The City of Kingston, New York, recently passed a new form-based zoning code on August 2, 2023, that includes provisions regulating short-term rentals like Airbnb and VRBO. All STR operators in Kingston must now follow these rules.

Starting a Short-Term Rental Business in Kingston

Under the new code, the number of full-time short-term rentals is capped at 106 permits, which is 1% of the city's total housing units. There is no cap on limited STRs (rented less than 30 days per year) and resident-occupied STRs.

All types of STRs, including full-time, limited, and resident-occupied, are required to register with the city and pay a fee. Full-time STR permits are only allowed in T5 or T4 zoning transects, and only one STR is permitted per property. No STR permits will be issued for accessory dwelling units (ADUs).

After registering, the Building Safety Department will inspect each STR unit. If approved, the owner will receive an operating license. As of December 2023, 87 full-time STRs had registered, with only 19 permits still available under the cap. 10 resident-occupied and 8 limited STRs had also registered at that time.

The city is taking legal action against approximately 20 unregistered STR operators who are not in compliance with the new rules. Fines for operating an unlicensed STR start at $1000 per day for the first offense, increasing to $5000 and $7500 per day for subsequent violations.

Mayor Steve Noble said the goal of the permitting system is to increase housing units available for long-term occupancy and reduce the critical housing shortage in Kingston. "The vast majority of STR owners have registered or ceased operations to comply with the new rules," he stated.

Real estate investors looking to start an STR business in Kingston will need to carefully navigate the new regulations. Websites like Bigger Pockets provide forums for discussing STR-friendly towns in the Hudson Valley region. Some hosts on the site note that nearby towns like Woodstock and Olivebridge have even more restrictive STR limits than Kingston.

Overall, the new Kingston zoning code aims to strike a balance between allowing some STRs to support tourism while prioritizing long-term housing for residents. Prospective hosts should thoroughly research the rules, register their properties, and be prepared for the city's enforcement efforts against unpermitted rentals. With a thoughtful approach, operating a successful STR business within the new regulatory framework is still possible.

Short-Term Rental Licensing Requirement in Kingston

As of August 2023, all short-term rental operators in Kingston must register their properties and obtain a license under the city's new form-based zoning code. The registration process is administered through an online portal set up by the city.

There are three types of short-term rental licenses available:

• Full-time short-term rentals (rented year-round)
• Limited short-term rentals (rented less than 30 days per year)
• Resident-occupied short-term rentals (owner lives on premises)

Full-time STR licenses are capped at 106 permits, which is 1% of Kingston's total housing units. There are no caps on limited and resident-occupied STRs.

Registration fees vary by license type. Full-time STRs have an annual fee of $650, while limited and resident-occupied STRs pay $125 per year. Once registered, the city's Building Safety Department conducts an inspection of each unit. If approved, the owner receives an operating license.

As of December 2023, 87 full-time STRs had registered, leaving only 19 permits still available under the cap. 10 resident-occupied and 8 limited STRs had also registered at that time.

The city is taking legal action against approximately 20 unregistered STR operators who are not in compliance with the new rules. Fines for operating an unlicensed STR start at $1000 per day for the first offense, increasing to $5000 and $7500 per day for subsequent violations.

Mayor Steve Noble said the goal of the permitting system is to increase housing units available for long-term occupancy and reduce the critical housing shortage in Kingston. "The vast majority of STR owners have registered or ceased operations to comply with the new rules," he stated.

Prospective STR hosts in Kingston must carefully navigate the licensing requirements to avoid penalties. The city provides resources on its website to guide operators through registration. With the full-time STR permit cap now reached as of March 2024, new hosts will need to pursue limited or resident-occupied licenses unless the cap is raised in the future.

Required Documents for Kingston Short-Term Rentals

To apply for a short-term rental license in Kingston, operators must submit several required documents as part of the registration process. These documents help the city verify ownership, ensure safety standards are met, and maintain accurate records of all licensed STRs.

The key documents that must be provided include:

1. Proof of Property Ownership: Applicants must submit a copy of the property deed, most recent property tax bill, or other official document demonstrating ownership of the rental unit.
2. Government-Issued Identification: STR operators need to provide a valid government ID, such as a driver's license or passport, to confirm their identity matches the name on the property ownership documents.
3. Photographs of the Rental Unit: Clear, date-stamped photos of the interior and exterior of the STR unit are required. These images help city officials verify the property's condition and ensure it meets habitability standards.
4. Site Plan or Floor Plan: Applicants must include a detailed floor plan or site map showing all rooms and spaces that will be used for the rental and any outdoor areas guests can access. Emergency exits and fire extinguishers should be clearly marked.
5. Proof of Insurance: STR operators are required to have liability insurance coverage of at least $1,000,000. A copy of the insurance declaration page must be submitted with the license application.
6. Signed Affidavit of Compliance: The STR owner must sign an affidavit affirming that the information provided is accurate and the rental unit is in compliance with all relevant city codes, zoning laws, and the STR regulations.

In addition to these core documents, certain situations may require supplementary paperwork. For example, if the rental unit is part of a homeowners association or condominium complex, a letter from the HOA board approving the STR use may be necessary. If the applicant is not the property owner, they must provide a signed letter from the owner authorizing them to operate the STR.

The City of Kingston provides a checklist of all required documents on its website to guide STR operators through registration. Hosts can avoid delays by carefully compiling a complete application package and ensure their rental is properly licensed before welcoming guests. The Building Safety Department is available to answer any questions and provide assistance to applicants as needed.

Kingston Short-Term Rental Taxes

In addition to licensing requirements, short-term rental operators in Kingston must collect and remit taxes on their rental income. This includes both state and local taxes.

At the state level, New York imposes a 4% sales tax on all short-term rentals. Operators are responsible for registering with the New York State Department of Taxation and Finance, collecting the tax from guests, and submitting quarterly tax returns.

Locally, Ulster County charges a 2% Hotel and Motel Room Occupancy Tax on all short-term rentals. As of February 1, 2024, this tax was increased to 4% after approval by the Ulster County Legislature in December 2023. The tax applies to any rental of less than 30 consecutive days.

To comply with the Ulster County tax, STR operators must register with the Ulster County Department of Finance and remit the occupancy tax on a quarterly basis. Failure to collect and pay the tax can result in penalties and interest charges.

The City of Kingston does not currently impose any additional taxes specific to short-term rentals beyond the state and county levies. However, STR income is subject to federal and state income taxes, and hosts must report their rental earnings on their tax returns.

Short-term rental platforms like Airbnb and Vrbo collect and remit some taxes on behalf of hosts in certain jurisdictions. However, it is ultimately the responsibility of the STR operator to ensure they are fully complying with all applicable tax laws. The City of Kingston recommends that hosts consult with a tax professional to understand their obligations.

By properly registering, collecting, and paying the required taxes, STR operators in Kingston can avoid penalties and contribute to important public services supported by the tax revenue, including transportation and affordable housing initiatives. The increased Ulster County occupancy tax that took effect in 2024 is expected to generate an additional $3 million annually to help address these critical needs in the community.

New York Wide Short-Term Rental Rules

In addition to the regulations in New York City, there are also state-wide rules that apply to short-term rentals across New York. The New York State Multiple Dwelling Law prohibits renting out an entire apartment in buildings with three or more units for periods of fewer than 30 days unless the permanent tenant is present during the stay.

This means that short-term rentals are only permitted in apartment buildings and many multi-family properties throughout the state if the host remains on-site during the guest's stay. Fines for violating this law can be steep, ranging from $1,000 to $7,500 per offense.

Another key state-wide regulation is the requirement for short-term rental hosts to collect and remit sales and occupancy taxes. As of 2021, Airbnb and Vrbo automatically collect these taxes on behalf of their hosts in many New York counties. However, it's still the responsibility of the host to ensure they are fully compliant with all applicable tax laws.

Certain counties and municipalities in New York have implemented their own zoning regulations and permitting requirements for short-term rentals. For example, Suffolk County requires short-term rental properties to be registered and licensed, with different rules applying in some of the county's towns and villages.

Before listing a short-term rental anywhere in New York, hosts should carefully research all state and local laws to ensure they are operating legally. Failing to comply with these regulations can result in significant penalties and legal issues.

As New York State continues to grapple with affordable housing challenges, there may be a push for even stricter short-term rental laws in the future, beyond just New York City. Some state lawmakers have floated proposals to further restrict or tax vacation rentals in an effort to increase the supply of long-term housing.

Short-term rental booking platforms like Airbnb and Vrbo continue to advocate against what they view as overly burdensome regulations that hurt hosts and local economies. However, many housing advocates argue that a balance must be struck to ensure that the short-term rental industry doesn't exacerbate New York's housing crisis.

Navigating the complex web of state and local short-term rental regulations in New York can be challenging for hosts. But with proper due diligence and compliance, it's still possible to legally operate vacation rentals in many parts of the state. As always, prospective hosts should consult with local authorities and tax professionals to fully understand their obligations before listing their properties for short-term stays.

Does Kingston Strictly Enforce STR Rules?

Based on discussions among short-term rental hosts on forums like Bigger Pockets and Reddit, it appears that the City of Kingston actively enforces its STR regulations. Several hosts have reported receiving violation notices and significant fines for operating unlicensed rentals.

One Bigger Pockets user noted that while some nearby towns like Newburgh, NY currently have no STR permitting requirements, Kingston has been much more proactive about cracking down on non-compliant rentals. Another host on Reddit mentioned that their neighbor in Kingston was fined $1000 per day for running an unlicensed Airbnb.

Compared to many other cities and towns in the Hudson Valley and Catskills regions, Kingston seems to be on the stricter end in terms of STR enforcement. Places like Hudson, Saugerties, and Phoenicia have fewer restrictions and are considered more Airbnb-friendly.

However, most hosts on the forums agree that as long as you carefully follow Kingston's registration process, pay the required fees, and operate within the rules, running a successful STR business there is still very possible. Kingston's demand for short-term rentals remains high due to its proximity to outdoor recreation and popularity as a weekend getaway from NYC.

The general consensus is that attempting to skirt the regulations is not worth the risk in Kingston. The city has demonstrated that it will pursue and penalize unlicensed rentals. For hosts who want to avoid potential legal issues and fines, the best approach is to educate themselves on Kingston's STR ordinances, obtain proper licensing, and stay in compliance with all local rules.

So, in summary, while Kingston may not be as lax as some other Hudson Valley towns, it's not completely anti-Airbnb either. The key is to operate above board and within the regulatory framework the city has established. Hosts who do their due diligence can still find good STR investment opportunities in Kingston.

How to Start a Short-Term Rental Business in Kingston

If you're interested in starting a short-term rental business in Kingston, New York, here are the key steps to follow:

1. Determine if your property is eligible for a STR permit. Full-time STR permits are only allowed in T5 or T4 zoning transects, and only one STR is permitted per property. No STR permits will be issued for accessory dwelling units (ADUs).
2. Gather required documentation, including proof of property ownership (deed, tax bill, etc.), government-issued ID, photographs of the rental unit, a site plan or floor plan, proof of insurance, and a signed affidavit of compliance.
3. Register your STR with Ulster County and pay the applicable occupancy taxes. As of February 1, 2024, Ulster County charges a 4% Hotel and Motel Room Occupancy Tax on all STRs rented for less than 30 consecutive days.
4. Apply for a STR permit with the City of Kingston's Building Safety Department. Full-time STR permits cost $650 annually, while limited (less than 30 days per year) and resident-occupied STRs require a $125 annual fee.
5. Schedule an inspection with the Building Safety Department. If approved, you will receive your STR operating license.
6. Ensure your STR complies with all city regulations, including occupancy limits, parking requirements, and noise ordinances. Designate a local contact person who can respond to any issues within 24 hours.
7. Create a compelling listing on popular STR platforms like Airbnb and Vrbo. Highlight your property's unique features, amenities, and proximity to local attractions. Use high-quality photos and detailed descriptions.
8. Establish a system for managing bookings, guest communication, cleaning, and maintenance. Consider hiring a professional property management company if you need assistance.
9. Maintain accurate records of all STR income and expenses for tax purposes. Consult with a tax professional to ensure you are properly reporting your rental earnings.
10. Stay informed about any changes to Kingston's STR regulations and permitting process. Attend local town hall meetings and join STR host groups to stay connected with the community and advocate for fair policies.

By following these steps and complying with all applicable laws and regulations, you can successfully launch and operate a short-term rental business in Kingston. With the city's cap on full-time STR permits, starting the process early is important and exploring alternative options like limited or resident-occupied rentals if needed.

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

If you have questions or need assistance regarding short-term rental regulations and zoning in the City of Kingston, there are several key contacts available to help:

1. City of Kingston Office of Housing Initiatives

Phone: (845) 334-3928
Email: housing@kingston-ny.gov

Contact the Office of Housing Initiatives for general inquiries about short-term rental policies, registration processes, and affordable housing initiatives.

2. City of Kingston Building Safety Department

Phone: (845) 331-1217
Email: buildings@kingston-ny.gov

Contact the Building Safety Department for questions about building permits, inspections, and code enforcement related to short-term rentals.

3. City of Kingston Planning Department

Phone: (845) 334-3955
Email: planning@kingston-ny.gov

Contact the Planning Department for information on zoning districts, site plan review processes, and special permit requirements for short-term rentals.

4. City of Kingston Corporation Counsel

Phone: (845) 334-3947
Email: corpcouncil@kingston-ny.gov

Contact the Corporation Counsel's office for legal questions or concerns about short-term rental regulations and enforcement actions.

5. Ulster County Department of Finance

Phone: (845) 340-3000
Email: finance@co.ulster.ny.us

Contact the Ulster County Department of Finance for questions about registering and paying occupancy taxes for short-term rentals.

These contacts can provide guidance and resources to help short-term rental operators, property owners, and residents navigate the City of Kingston's regulations and zoning code. The city also maintains a short-term rental information page on its website with frequently asked questions and links to relevant documents.

For complaints about specific short-term rental properties, residents can submit an online form at https://str.govos.com/complaint/?cityid=1684 or directly contact the Office of Housing Initiatives or Building Safety Department. The city encourages open communication and collaboration among all stakeholders to ensure a balanced and effective approach to short-term rental oversight.

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

Based on discussions among Airbnb hosts on Reddit and Bigger Pockets forums, there are mixed opinions about the short-term rental regulations in Kingston, NY. Here are a few key takeaways from these online communities:

Reddit user in r/hudsonvalley: This host believes that the Hudson Valley, including Kingston, is becoming oversaturated with vacation rentals and Airbnbs. They argue that the proliferation of STRs is pricing out locals and harming communities. The sentiment is that more regulation may be needed to curb the negative impacts.

Bigger Pockets forum post "First Airbnb in the Hudson Valley": An investor shares their experience buying and renovating a cottage in Ulster County to use as a short-term rental. They navigated local permitting and seem satisfied with the process, but acknowledge the costs and effort involved in ensuring a country home is up to code for rental use.

Reddit thread in r/AirBnB on NY's statewide ban on STRs: Hosts express frustration with New York's new law (S4547c/A7368c) that prohibits STRs in properties with 3+ units unless the owner is present. Some argue it unfairly benefits hotels and hurts individual hosts. Others believe it's necessary to preserve housing stock for residents. The law applies statewide, beyond just Kingston.

Bigger Pockets blog post "Has the Short-Term Rental Goldmine Run Dry?": This article suggests that the "easy money" days of STR investing are ending as more regulations take effect in markets like Kingston. The author advises hosts to carefully study local laws, be prepared for increasing restrictions, and have contingency plans for long-term renting if STRs become unviable.

Reddit thread in r/KingstonOntario on STR profitability: While this discussion is about Kingston, Ontario, not NY, it shows the common questions prospective hosts have about regulations and revenue potential. Commenters note the importance of understanding local bylaws, getting proper insurance, and preparing for variable income seasonally.

Overall, these forums show that Airbnb hosts in Kingston and the Hudson Valley are grappling with the evolving regulatory landscape. Some see the rules as necessary to protect housing and neighborhoods, while others view them as unfair restrictions on their ability to earn income. The general advice is to thoroughly research the local laws, secure proper permits, and have backup plans if STR policies become more restrictive over time.

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.