Lake Placid Short-Term Rental Regulation: A Guide For Airbnb Hosts

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

Lake Placid, a popular tourist destination in the Adirondack Mountains of upstate New York, recently passed new regulations on short-term rentals like Airbnb and VRBO in January 2023. After months of public meetings and revisions, the Lake Placid Village Board of Trustees and the North Elba Town Council approved a joint law.

Starting a Short-Term Rental Business in Lake Placid

Under the new law, unhosted short-term rentals will be prohibited in most residential neighborhoods in Lake Placid and the town of North Elba. Existing permit holders in residential areas will be grandfathered in, but once the property changes hands, no new unhosted STR permits will be issued for that location.

There is no limit on STR permits in Lake Placid's village center district. Properties along Main Street from the Olympic Speedskating Oval to the North Elba Town Hall are also exempt from the unhosted STR restrictions, as long as one long-term rental unit is provided for every two STRs.

The law caps the total number of STR permits in the town, though the exact limit has not been finalized. A waitlist system will be established once the cap is reached. Permit fees were recently increased to $650 annually for full-time STRs to fund new compliance monitoring and enforcement efforts.

All STR operators must register with Essex County and collect occupancy taxes. A local contact person who can respond to issues within 30-60 minutes is also required. Fines for violating the new STR ordinance start at $350-$1000 for a first offense and increase to $1000-$3000 for subsequent violations.

Village Trustee Jackie Kelly said the goal is to strike a balance between allowing some STRs while prioritizing long-term housing for residents. "We're trying to fix the perception short-term rental owners have that they're being vilified, and the perception from residents their community is being destroyed," she stated.

Opinions are mixed among STR owners. Some feel the new rules unfairly restrict their property rights, while others acknowledge action was needed to preserve neighborhood character and housing availability. Hosts looking to start STRs in Lake Placid will need to carefully review the zoning restrictions and permit requirements to ensure compliance with the new regulations.

Short-Term Rental Licensing Requirement in Lake Placid

As of January 2023, all short-term rental operators in Lake Placid and the town of North Elba must obtain a permit under the newly approved joint STR regulations. The law defines a short-term rental as a dwelling unit rented in whole or in part for less than 30 consecutive nights. This includes any residential building, apartment, single-family dwelling, two-family dwelling, condo, townhouse, guest house, cottage, cabin, accessory dwelling, as well as rooming houses and boarding houses, but excludes timeshares.

There are four types of short-term rental permits available in Lake Placid:

• Unhosted STR Permit: For rentals where the owner is not required to be present. These permits are capped and no longer issued in residential districts, with some exceptions.
• Hosted STR Permit: For rentals where the owner lives on-site for at least 184 days per year and stays overnight whenever the property is rented. Hosted permits are capped at 48 in the town.
• Lodging STR Permit: For rentals in the village center, gateway corridor district, and certain other designated areas. There is no cap on these permits.
• Main Street STR Permit: For rentals along Main Street from Brewster Park to the North Elba Town Hall. Properties with three or more units must provide one long-term rental for every two STRs.

To apply for a permit, owners must submit various documents, including proof of ownership, a signed affidavit certifying compliance with safety requirements, a site plan, a septic inspection report if applicable, and contact information for a local representative who can respond to issues within 60 minutes.

Permit fees have recently increased to cover the costs of enhanced enforcement. Unhosted and lodging STR permits have an annual fee of $650, while hosted and Main Street STR permits cost $200 per year. Permits are valid for one year and must be renewed annually.

All STR operators are also required to register with the Essex County Occupancy Tax Program and collect and remit the 5% occupancy tax on all stays. Failure to obtain a permit or comply with the STR regulations can result in fines starting at $350-$1,000 for a first offense and increasing to $1,000-$3,000 for subsequent violations.

The new licensing requirements aim to strike a balance between allowing some STRs to support tourism while prioritizing long-term housing for residents. Existing permit holders in residential areas will be grandfathered in, but once a property changes hands, no new unhosted permits will be issued in those districts. The town has also implemented a permit waitlist system that will be activated once the caps are reached.

Required Documents for Lake Placid Short-Term Rentals

To apply for a short-term rental permit in Lake Placid and the town of North Elba, property owners must submit several required documents as part of the registration process. These documents help the municipality 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. A copy of the insurance declaration page must be submitted with the permit application.
6. Septic System Inspection Report: For properties not connected to the municipal sewer system, a septic inspection report completed by a licensed professional must be provided to ensure the system is functioning properly and can handle the increased occupancy.
7. 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 town 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 Town of North Elba and Village of Lake Placid provide a checklist of all required documents on their websites to guide STR operators through the registration process. Hosts can avoid delays by carefully compiling a complete application package and ensure their rental is properly licensed before welcoming guests. The Building and Planning Department is available to answer any questions and provide assistance to applicants as needed.

Lake Placid Short-Term Rental Taxes

Short-term rental operators in Lake Placid and the town of North Elba are subject to several taxes at the state, county, and local levels. It's crucial for hosts to understand and comply with these tax obligations to avoid penalties and maintain good standing with the authorities.

At the state level, New York imposes a 4% sales tax on all short-term rentals. Operators must register with the New York State Department of Taxation and Finance, collect the tax from guests, and remit it to the state on a quarterly basis.

In addition to the state sales tax, Essex County, where Lake Placid is located, charges a 3% occupancy tax on all short-term rentals. This tax is administered by the Essex County Treasurer's Office, and hosts must register with the county to collect and remit the tax.

At the local level, the Village of Lake Placid and the Town of North Elba have implemented a 5% occupancy tax on short-term rentals. This tax is collected by the town and village and is used to fund tourism promotion and infrastructure improvements.

To comply with these tax requirements, short-term rental hosts in Lake Placid must:

1. Register with the New York State Department of Taxation and Finance for a sales tax certificate of authority.
2. Register with the Essex County Treasurer's Office for an occupancy tax permit.
3. Register with the Town of North Elba and/or the Village of Lake Placid for a local occupancy tax permit.
4. Collect the applicable state, county, and local taxes from guests as part of the rental fee.
5. File quarterly tax returns with each taxing authority and remit the collected taxes.

Some short-term rental platforms, such as Airbnb, have agreements with Essex County to collect and remit the county occupancy tax on behalf of hosts. However, it's ultimately the host's responsibility to ensure compliance with all tax laws and file the necessary returns.

Failure to comply with these tax requirements can result in fines, penalties, and legal action. The Town of North Elba and the Village of Lake Placid have stepped up enforcement efforts in recent years, and non-compliant hosts may face significant consequences.

Hosts should consult with a tax professional to understand their obligations and develop a system for proper tax collection and reporting to ensure a successful and compliant short-term rental operation in Lake Placid. By staying on top of these requirements, hosts can avoid costly mistakes and contribute to the local economy through the tax revenue generated by their rentals.

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 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 Lake Placid Strictly Enforce STR Rules?

Based on discussions among short-term rental hosts on forums like Bigger Pockets and Reddit, it appears that the Village of Lake Placid and the Town of North Elba do actively enforce their 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 currently have minimal or no STR permitting requirements, Lake Placid has been much stricter about cracking down on non-compliant rentals. Another host on Reddit mentioned that their neighbor in Lake Placid was fined thousands of dollars for running an unlicensed Airbnb.

Compared to many other towns in the Adirondacks region, Lake Placid seems to be on the more stringent end when it comes to STR enforcement. Places like Saranac Lake, Tupper Lake, and some parts of Essex County have fewer restrictions and are considered more Airbnb-friendly.

However, most forum users agree that as long as you follow Lake Placid's licensing process, pay the required fees, and operate within the zoning rules, it's still possible to legally run a successful STR business in the area. The demand for vacation rentals remains high due to Lake Placid's popularity as an outdoor recreation destination.

The consensus is that attempting to skirt the regulations is extremely risky in Lake Placid. The town and village have demonstrated their commitment to pursuing and penalizing unlicensed STR operators. For hosts who want to avoid potential legal issues and hefty fines, the best approach is to thoroughly understand the local laws, obtain proper licensing and permits, and maintain full compliance.

So, while Lake Placid may not be as lenient as some other Adirondack communities when it comes to short-term rentals, it's not an outright ban either. Responsible hosts who navigate the regulatory framework can still find viable investment opportunities. However, trying to operate an illegal, unlicensed rental is likely to invite harsh consequences from the local authorities.

How to Start a Short-Term Rental Business in Lake Placid

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

1. Determine if your property is eligible for a STR permit based on its location and zoning district. Unhosted STRs are prohibited in most residential areas, with some exceptions. Hosted and lodging STRs have different permit requirements.
2. Gather required documentation, including proof of property ownership, government-issued ID, photographs of the rental unit, a site plan or floor plan, proof of insurance, and a septic inspection report if applicable.
3. Identify a local contact person, such as a co-host or property manager, who can respond to any issues at your rental property within 60 minutes.
4. Register your STR with the Essex County Treasurer's Office for the county occupancy tax program.
5. Apply for the appropriate STR permit with the Village of Lake Placid or Town of North Elba. Permit fees range from $200 to $650 annually depending on the permit type.
6. Schedule an inspection with the Building and Planning Department. If approved, you will receive your operating permit.
7. Ensure your STR complies with all regulations, including occupancy limits, parking requirements, noise ordinances, and safety standards for smoke detectors, fire extinguishers, etc.
8. Create a compelling listing on popular STR platforms like Airbnb and Vrbo. Use high-quality photos and highlight proximity to local attractions.
9. Establish systems for managing bookings, guest communication, cleaning, and maintenance. Consider hiring professional property management if needed.
10. Maintain accurate records of all STR income and expenses for tax purposes. Collect and remit the required state, county, and local taxes.
11. Stay informed about any changes to Lake Placid's STR regulations. Attend public meetings and join host groups to stay connected.
12. Renew your STR permit annually and schedule any required inspections or septic system checks.

By carefully following these steps and operating in full compliance with local laws, you can successfully launch a short-term rental business in Lake Placid. However, be aware that the Village and Town have implemented caps on certain permit types, so starting the process early is advisable.

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

If you have questions or need assistance regarding short-term rental regulations and zoning in the Village of Lake Placid and the Town of North Elba, there are several key contacts available:

1. Village of Lake Placid Building and Planning Department

Phone: (518) 523-2768
Email: planning@villageoflakeplacid.ny.gov

Contact the Building and Planning Department for inquiries about short-term rental permits, zoning districts, inspections, and code enforcement.

2. Town of North Elba Code Enforcement Office

Phone: (518) 523-3324
Email: codeenforcement@northelba.org

Contact the Code Enforcement Office for questions about the town's short-term rental regulations, permit requirements, and compliance issues.

3. Village of Lake Placid Clerk's Office

Phone: (518) 523-2584
Email: clerk@villageoflakeplacid.ny.gov

Contact the Clerk's Office for general information about village laws and ordinances related to short-term rentals.

4. Town of North Elba Clerk's Office

Phone: (518) 523-7338
Email: townclerk@northelba.org

Contact the Town Clerk's Office for inquiries about town codes, resolutions, and short-term rental policies.

6. Essex County Treasurer's Office

Phone: (518) 873-3720
Email: treasurer@essexcountyny.gov

Contact the Essex County Treasurer's Office for questions about registering and paying occupancy taxes for short-term rentals.

These contacts can provide guidance, resources, and assistance to help short-term rental operators, property owners, and residents navigate Lake Placid's regulations and zoning codes and the Town of North Elba. The municipalities also maintain dedicated pages on their websites with frequently asked questions, permit applications, and links to relevant documents.

Residents can contact the Building and Planning Department or Code Enforcement Office directly for complaints or concerns about specific short-term rental properties. The village and town encourage open communication and collaboration among all stakeholders to ensure a balanced and effective approach to short-term rental oversight.

What Do Airbnb Hosts in Lake Placid 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 Lake Placid, NY. Here are a few key takeaways from these online communities:

Reddit user in r/Adirondacks: This host believes the new STR rules in Lake Placid are overly restrictive, especially the ban on new unhosted permits in residential areas. They argue it unfairly limits property rights and income opportunities for homeowners.

Bigger Pockets forum thread "Lake Placid STR Regulations": An investor shares their frustration with the costly $650 annual permit fees and extensive documentation required. However, they acknowledge the need to balance tourism with preserving housing stock.

Reddit comment in r/UpstateNewYork on Adirondack housing: A commenter argues that strict caps on STRs are necessary in places like Lake Placid to prevent homes from being bought solely as vacation rentals, pricing out local residents.

Bigger Pockets blog post "Investing in Vacation Towns": This article cautions investors to thoroughly research local STR laws before purchasing in tourist destinations. It uses Lake Placid as an example of a town cracking down on unlimited vacation rentals.

Reddit thread in r/Adirondacks on "vilified" STR owners: Hosts express frustration at being portrayed negatively by locals for operating legal, permitted rentals. Some argue they are being unfairly blamed for broader housing affordability issues.

Overall, these forums reveal a divide between STR operators who feel the Lake Placid regulations are too onerous and restrictive, and those who believe such measures are needed to protect residential neighborhoods and housing access. There is debate around finding the right balance to support tourism while preventing investor-owned homes from dominating the market.

Prospective hosts are advised to carefully review Lake Placid's zoning rules, permit caps, and fees before investing in a short-term rental property. According to many online discussions, enforcement appears to be increasing, so operating an unlicensed rental could result in significant penalties.

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.