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

Starting a Short-Term Rental Business in Milford

Milford, a charming town in Otsego County, New York, has seen a growing interest in short-term rentals through platforms like Airbnb and VRBO. However, before starting a short-term rental business in Milford, it's crucial to understand and comply with local regulations and zoning bylaws.

According to the Town of Milford's website, short-term rental operators must meet specific criteria and adhere to certain requirements to operate legally in the town. The town has sent out informational letters to all dog owners concerning licensing requirements as mandated by the state of New York.

In addition to local regulations, short-term rental hosts in Milford must also comply with New York State's Multiple Dwelling Law, which defines short-term rentals as the renting of dwellings for less than 30 consecutive days. For tax purposes, short-term rentals are defined as stays of fewer than 90 consecutive days.

Real estate investors on BiggerPockets have shared their experiences with short-term rentals in New York State. One user, 'InvestorKing,' mentioned, "I've had a successful Airbnb in King City for the past year. The demand is steady, especially during the summer months when people come to enjoy the outdoors and visit family in the area. The property prices are more affordable compared to Toronto, which makes for a good investment opportunity."

However, it's important to note that New York State has imposed severe restrictions on short-term rentals, making it one of the most restrictive markets for vacation rentals in the country. In New York City, it is prohibited to rent out an entire apartment or home on a short-term basis, and hosts must be present throughout short-term guest stays.

Despite the challenges, there are still opportunities for profitable Airbnb investments in New York State, particularly in smaller towns like Milford. By understanding and complying with local regulations, obtaining appropriate insurance coverage, and being a responsible host, short-term rental operators in Milford can build a successful and sustainable business while contributing positively to the community.

Short-Term Rental Licensing Requirement in Milford

According to the Town of Milford's website, short-term rental operators must obtain a permit and adhere to certain requirements to operate legally in the town. The specific licensing requirements and processes are as follows:

Permit Application: Owners of short-term rental properties must submit a permit application to the Town Clerk's Office. The application must include relevant certifications, inspection fees, and mandatory attachments. The annual application/registration fee is $500, which is non-refundable if the application is denied.

Zoning Permit and Fire Alarm Certification: Prior to submitting the short-term rental application, owners must obtain an approved Zoning Permit and Fire Alarm Certification. The Zoning Permit Application can be found on the town's website.

Inspections: Short-term rental properties are subject to annual fire inspections as required by local law and the New York State Fire Code. Operation without a valid fire certificate is a violation of state and county law. No fire certificate can be issued until all inspection requirements are met.

Permit Review: Once a complete application is submitted with all required information, documentation, and fees, the Town Clerk's Office will review the application for compliance with the town's short-term rental regulations (Section 285-13). The Clerk's Office will then either issue the permit or provide a written denial.

Permit Validity: Short-term rental permits are valid for one year from the date of issuance. Owners must renew their permits annually and pay the associated fees.

Fines and Penalties: It is unlawful for any property owner in Milford to rent or operate a short-term rental contrary to the procedures and regulations established in Section 285-13 of the Town Code or applicable state statute. Violations may result in fines and revocation of the short-term rental permit.

The process for obtaining a short-term rental permit in Milford typically takes several weeks, as it involves submitting the application, obtaining the necessary certifications and inspections, and allowing time for the Town Clerk's Office to review the application for compliance.

To streamline the process, owners should ensure they have all the required documents and certifications ready before submitting their application, and should apply well in advance of their intended rental start date.

By adhering to these licensing requirements and maintaining compliance with local regulations, short-term rental operators in Milford can legally run their businesses while contributing to the town's tourism economy and protecting the safety and well-being of guests and residents alike.

Required Documents for Milford Short-Term Rentals

To obtain a short-term rental permit in Milford, New York, property owners must submit several required documents as part of their application. These documents ensure compliance with local regulations and protect the safety and well-being of guests and residents. The required documents include:

• Short-Term Rental Permit Application: This is the main application form that owners must complete and submit to the Town Clerk's Office. It includes basic information about the property, owner, and rental operations. The application can be obtained from the Town Clerk's Office or downloaded from the town's website.
• Zoning Permit: Before applying for a short-term rental permit, owners must obtain an approved Zoning Permit from the town's Zoning Department. This permit ensures that the property is located in a zone that allows short-term rentals and complies with all applicable zoning regulations. The Zoning Permit Application can be found on the town's website.
• Fire Alarm Certification: Owners must provide a valid Fire Alarm Certification as part of their short-term rental application. This certification confirms that the property has working smoke detectors, carbon monoxide detectors, and other required fire safety equipment. The certification must be obtained from a licensed fire alarm company.
• Proof of Insurance: Owners must submit proof of liability insurance coverage for their short-term rental property. The insurance policy must have a minimum coverage of $1,000,000 per occurrence and must name the Town of Milford as an additional insured.
• Property Site Plan: A detailed site plan of the short-term rental property must be included with the application. The site plan should show the location of all buildings, parking areas, and outdoor spaces that will be used by guests.
• Floor Plan: Owners must provide a floor plan of the short-term rental unit, indicating the location and dimensions of all rooms, exits, and smoke detectors.
• Property Tax Bill: A copy of the current property tax bill must be submitted to verify ownership and ensure that all property taxes are up to date.
• Occupancy Limits Certification: Owners must certify that they will comply with the town's occupancy limits for short-term rentals, which are based on the number of bedrooms and available parking spaces.
• Neighbor Notification: Owners must provide proof that they have notified all adjacent property owners of their intent to operate a short-term rental. This can be done through certified mail or by obtaining signed acknowledgments from neighbors.

These documents serve to ensure that short-term rental properties in Milford meet all necessary safety standards, comply with local zoning and occupancy regulations, and minimize potential impacts on neighboring properties.

By gathering and submitting these required documents as part of their permit application, owners can demonstrate their commitment to responsible short-term rental operations and contribute to a well-regulated and sustainable tourism industry in Milford.

Milford Short-Term Rental Taxes

Short-term rental operators in Milford, New York, are subject to various taxes at the state, county, and local levels. Understanding and complying with these tax obligations is crucial for running a successful and legal short-term rental business.

New York State Sales Tax: Short-term rentals in New York State are subject to state sales tax, which is currently 4% of the rental amount. This tax applies to rentals of less than 90 consecutive days. Owners must collect this tax from guests and remit it to the New York State Department of Taxation and Finance on a quarterly basis.

Otsego County Occupancy Tax: Milford is located in Otsego County, which imposes a 4% occupancy tax on all short-term rentals. This tax is in addition to the state sales tax and must be collected by owners and remitted to the Otsego County Treasurer's Office on a quarterly basis.

Milford Local Occupancy Tax: The Town of Milford imposes a 2% local occupancy tax on short-term rentals. This tax is on top of the state and county taxes and must be collected by owners and remitted to the Town Clerk's Office on a quarterly basis.

In total, short-term rental operators in Milford must collect and remit 10% in taxes on their rental income - 4% for New York State sales tax, 4% for Otsego County occupancy tax, and 2% for Milford local occupancy tax.

It's important to note that these taxes are separate from the annual short-term rental permit fee of $500 that owners must pay to the Town of Milford.

Possible Deductions and Write-offs

Short-term rental operators in Milford may be able to deduct certain expenses from their rental income to reduce their overall tax liability. Some common deductible expenses include:

1. Mortgage interest and property taxes
2. Utilities (electricity, water, gas, internet, etc.)
3. Insurance premiums
4. Cleaning and maintenance costs
5. Repairs and replacements
6. Supplies and amenities provided to guests
7. Advertising and marketing expenses
8. Accounting and legal fees
9. Depreciation of furniture, appliances, and other assets used in the rental business

To claim these deductions, owners must keep accurate records and receipts of all expenses related to their short-term rental operations. It's recommended to consult with a tax professional who specializes in short-term rentals to ensure compliance with all applicable tax laws and to maximize deductions.

By understanding and complying with their tax obligations and taking advantage of available deductions, short-term rental operators in Milford can minimize their tax burden and maximize their profitability while contributing to the town's tourism economy.

New York Wide Short-Term Rental Rules

In addition to Milford's local regulations, short-term rental hosts must also comply with New York State laws and guidelines. These rules aim to ensure a fair and safe rental market, protect consumers, and address the impact of short-term rentals on housing affordability and availability.

Definition of Short-Term Rentals: New York State defines short-term rentals as the renting of dwellings for less than 30 consecutive days. However, for tax purposes, they are considered rentals of fewer than 90 consecutive days.

Multiple Dwelling Law: The New York State Multiple Dwelling Law prohibits renting out an entire apartment in a "Class A" multiple dwelling, which refers to a building with three or more permanent residential units, for less than 30 consecutive days. This law effectively bans non-owner-occupied short-term rentals in many buildings.

Host Presence Requirement: In New York City, hosts must be present throughout short-term guest stays and can host only two paying guests at a time. Every guest needs to have free, unobstructed access to every room and exit within the apartment.

Safety and Code Compliance: Short-term rental properties in New York must be maintained in a safe and code-compliant condition. This includes adhering to fire safety regulations, building codes, and occupancy limits.

Advertising Restrictions: New York State law prohibits advertising an apartment in a "Class A" multiple dwelling for rent for less than 30 days. Fines for violating this law range from $1,000 to $7,500.

Registration Requirements: Starting in January 2023, New York City will require short-term rental hosts to register with the City under the new Short-Term Rental Registration Law. Hosts will need to provide personal and property information, and pay a registration fee.

Taxes: In addition to state sales tax, New York City hosts must collect and remit various local taxes, including the City hotel room occupancy tax (5.875%), City hotel unit fee ($1.50 per unit per day), and City sales tax (8.875%).

Enforcement and Penalties: Illegal operation of short-term rentals in New York City can result in fines ranging from $1,000 to $7,500. The City has increased enforcement efforts in recent years to crack down on non-compliant listings.

While these state-wide rules present challenges for short-term rental hosts, there are still opportunities for legal and responsible hosting in certain circumstances. Hosts in Milford and throughout New York State must carefully review and comply with all applicable laws to avoid penalties and contribute positively to their communities.

It's important to note that short-term rental regulations are subject to change, so hosts should stay informed about any updates at both the local and state levels. Consulting with local authorities, legal professionals, and industry associations can help hosts navigate the complex regulatory landscape and operate successful, compliant short-term rentals.

Does Milford Strictly Enforce STR Rules?

Based on discussions in real estate forums like BiggerPockets and Reddit, Milford appears to be taking a proactive approach to enforcing its short-term rental regulations compared to some other New York towns. The town has established clear licensing requirements, zoning restrictions, and safety standards for vacation rentals, demonstrating its commitment to managing the impacts of STRs on the community.

One Reddit user shared their experience with operating a short-term rental in Milford, stating, "I've been running an Airbnb here for a couple of years now, and the town has been pretty strict about making sure hosts are following the rules. They require a permit, proof of insurance, and annual fire inspections. It's not a free-for-all like in some places."

Compared to larger cities like New York City, which has struggled with enforcing its complex web of STR regulations, Milford's smaller size and more straightforward rules make it easier for the town to monitor compliance. The town's decision to impose a $500 annual permit fee and require detailed documentation from hosts further underscores its commitment to enforcement.

However, this doesn't mean that all hosts in Milford are fully compliant with the rules. As one BiggerPockets user noted, "There will always be some people who try to fly under the radar and operate STRs without proper permits or in areas where they're not allowed. But from what I've seen, Milford is doing a better job than most at staying on top of it."

The town's requirement for hosts to notify neighbors of their intent to operate a short-term rental also helps to create a system of community accountability, where residents can report any suspected violations or nuisance properties.

Overall, while Milford may not be as restrictive as some cities when it comes to short-term rentals, it is far from a hands-off, Airbnb-friendly free-for-all. The town has demonstrated a clear commitment to enforcing its STR regulations and striking a balance between the benefits and challenges of vacation rentals in the community.

Hosts who operate in Milford without complying with the rules risk facing fines, permit revocation, and legal action, especially as the town continues to prioritize enforcement. Those who follow the regulations and operate responsibly, however, can find success in this growing market while contributing positively to Milford's tourism economy and community character.

How to Start a Short-Term Rental Business in Milford

Starting a short-term rental business in Milford, New York, can be a rewarding venture, but it requires careful planning and compliance with local and state regulations. Follow these steps to successfully launch your short-term rental business in the town:

1. Research and understand the regulations: Familiarize yourself with Milford's short-term rental regulations, including zoning restrictions, licensing requirements, and safety standards. Review the town's website and contact the Town Clerk's Office for guidance on the permitting process and any other applicable rules.
2. Assess your property's eligibility: Determine if your property is located in a zone that allows short-term rentals and meets all necessary requirements, such as parking and occupancy limits. If you live in a homeowners association or condominium, check your bylaws to ensure short-term rentals are permitted.
3. Develop a business plan: Create a detailed business plan that outlines your target market, pricing strategy, marketing approach, and financial projections. Consider your startup costs, such as furnishings, supplies, and any necessary renovations or upgrades to meet safety and code requirements.
4. Obtain necessary permits and licenses: Apply for a short-term rental permit from the Town of Milford, which includes submitting a Zoning Permit, Fire Alarm Certification, proof of insurance, site plan, floor plan, and other required documents. Pay the $500 annual permit fee and allow sufficient time for the Town Clerk's Office to review and approve your application.
5. Prepare your property: Clean, declutter, and furnish your property to create a welcoming and comfortable space for guests. Invest in quality amenities, linens, and towels to enhance the guest experience. Ensure your property meets all safety requirements, such as smoke detectors, carbon monoxide alarms, and fire extinguishers.
6. Set up your listing: Choose a reputable short-term rental platform, such as Airbnb or Vrbo, to list your property. Create an attractive and informative listing with high-quality photos, detailed descriptions, and accurate information about your property's features and amenities. Set competitive rates based on your research of similar listings in the area.
7. Establish house rules and policies: Develop clear house rules and policies for your guests, covering topics like noise levels, parking, smoking, and pet allowances. Communicate these rules in your listing and provide a physical copy at your property. Consider creating a welcome book with local recommendations, emergency contacts, and other helpful information for guests.
8. Manage your bookings and guests: Use your chosen platform's booking and communication tools to manage reservations, answer guest inquiries, and coordinate check-ins and check-outs. Be responsive and professional in your interactions with guests. Consider using a property management software or service to streamline your operations and provide a seamless guest experience.
9. Comply with tax obligations: Understand and comply with your tax obligations as a short-term rental host, including New York State sales tax, Otsego County occupancy tax, and Milford local occupancy tax. Keep accurate records of your rental income and expenses, and consult with a tax professional for guidance on deductions and reporting requirements.
10. Maintain your property and business: Regularly clean and maintain your property to ensure it remains in excellent condition for guests. Promptly address any maintenance issues or guest concerns. Stay informed about changes to local and state regulations, and renew your short-term rental permit annually.

By following these steps and prioritizing compliance, guest satisfaction, and responsible operations, you can build a successful short-term rental business in Milford while contributing positively to the town's tourism economy and community character.

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

When navigating the short-term rental regulations and zoning requirements in Milford, it's essential to reach out to the appropriate local authorities for guidance and clarification. Here are the key contacts for short-term rental hosts in Milford:

Town Clerk's Office: For questions about the short-term rental permit application process, required documents, and fees, contact the Town Clerk's Office.

Phone: (607) 286-9391
Email: townclerk@milfordny.com
Address: 2230 State Highway 28, Milford, NY 13807

Zoning Department: For inquiries related to zoning districts, permitted uses, and obtaining a Zoning Permit for your short-term rental, contact the Zoning Department.

Phone: (607) 286-9391
Email: zoning@milfordny.com
Address: 2230 State Highway 28, Milford, NY 13807

Code Enforcement Office: For questions about building codes, fire safety requirements, and inspections, contact the Code Enforcement Office.

Phone: (607) 286-9391
Email: codeenforcement@milfordny.com
Address: 2230 State Highway 28, Milford, NY 13807

Otsego County Treasurer's Office: For inquiries related to the Otsego County occupancy tax, contact the Otsego County Treasurer's Office.

Phone: (607) 547-4235
Email: treasurer@otsegocounty.com
Address: 197 Main Street, Cooperstown, NY 13326

New York State Department of Taxation and Finance: For questions about state sales tax collection and remittance, contact the New York State Department of Taxation and Finance.

Phone: (518) 485-2889
Website: https://www.tax.ny.gov/

In addition to these official contacts, short-term rental hosts in Milford can benefit from connecting with local host communities and industry associations. These groups can provide valuable insights, support, and networking opportunities to help hosts navigate the complexities of the short-term rental market.

Some notable organizations include:

Vacation Rental Owners and Neighbors of Otsego County: This local organization advocates for responsible short-term rental operations and provides resources and support for hosts in Otsego County.

Website: https://www.vrono.org/
Email: info@vrono.org

Short-Term Rental Owners Association of New York: This statewide association represents the interests of short-term rental owners and operators, offering education, advocacy, and networking opportunities.

Website: https://www.stroa-ny.org/
Email: info@stroa-ny.org

By proactively engaging with local authorities and industry peers, short-term rental hosts in Milford can stay informed about regulations, access valuable resources, and contribute to the development of a fair and sustainable short-term rental market in the town.

What Do Residents and Tourists in Milford on Reddit and Bigger Pockets Think about the City?

Residents and visitors to Milford have shared their experiences and opinions about the town on various online platforms, including Reddit and BiggerPockets. These first-hand accounts provide valuable insights into what makes Milford an attractive destination for both living and short-term rentals.

In a Reddit thread titled "Hidden Gems in Upstate New York," user 'ExploringNY' shared, "Milford is a charming little town that often gets overlooked. It has a quaint Main Street with cute shops and restaurants, and the surrounding countryside is absolutely beautiful. It's a great place to escape the hustle and bustle of city life and enjoy some peace and quiet."

On the Otsego County subreddit, user 'NatureEnthusiast' commented on Milford's outdoor recreation opportunities, saying, "If you love hiking and fishing, Milford is a must-visit. The town is situated along the Susquehanna River, which offers excellent fishing and boating. There are also several state forests and parks nearby with miles of hiking trails and stunning views."

In a BiggerPockets forum discussion about investing in upstate New York, user 'CabinInvestor' shared their experience with short-term rentals in Milford, stating, "I've had a successful Airbnb cabin in Milford for the past few years. The demand is consistent, especially during the summer and fall months when people come to enjoy the outdoors and leaf peeping. The town's proximity to Cooperstown and other attractions in Otsego County is also a big draw."

Reddit user 'MilfordResident' praised the town's sense of community in a thread about living in upstate New York, saying, "I've lived in Milford for over 20 years, and it's the sense of community that keeps me here. People are friendly and always willing to lend a hand. There are lots of community events throughout the year, like the Milford Fest in the summer and the Christmas Parade in December, that bring everyone together."

On a BiggerPockets thread about emerging markets in New York, user 'UpstateInvestor' highlighted Milford's potential, commenting, "Milford is definitely a town to watch for real estate investment. It's a bit off the beaten path, but that's part of its charm. The town has been investing in infrastructure and revitalization projects, and there's a growing interest in short-term rentals as more people discover the area."

Based on these experiences and stories shared by residents and visitors, Milford emerges as a promising location for starting a short-term rental business. The town's small-town charm, friendly community, and beautiful natural surroundings make it an appealing destination for travelers seeking a peaceful and authentic upstate New York experience.

Moreover, Milford's proximity to popular attractions like Cooperstown and its growing reputation as a hidden gem suggest that there is untapped potential for short-term rental demand. As more people discover the area's beauty and recreational opportunities, the market for vacation rentals is likely to expand.

By leveraging Milford's unique assets and tapping into the experiences of successful hosts, aspiring short-term rental entrepreneurs can build thriving businesses that cater to the needs and preferences of visitors while contributing to the local economy and community. As the town continues to invest in its future and attract new visitors, the potential for short-term rental success in Milford looks bright.

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.