Monroe County, New York Short-Term Rental Regulation: A Guide For Airbnb Hosts

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

Monroe County, New York, which includes the city of Rochester, has specific regulations governing short-term rentals like Airbnb and VRBO. These rules are designed to balance the interests of property owners, guests, and the surrounding community.

Starting a Short-Term Rental Business in Monroe County

To legally operate a short-term rental in Monroe County, hosts must:

• Obtain a Short Term Rental (STR) Permit from the City of Rochester. As of January 1, 2023, all short-term rental operators are required to have this permit.
• Provide required documents, including proof of ownership, a floor plan, proof of liability insurance, and a permit fee.
• Limit occupancy to 2 people per legal bedroom, plus 2 additional people per unit, up to a maximum of 12 people total.
• Provide one off-street parking space for each rental unit.
• Observe quiet hours from 10pm to 7am daily, with no noise audible beyond property lines.
• Prohibit events, parties, or large gatherings without city approval.
• Include the permit number on all listings.
• Keep the building exterior and yard clean and in good repair.
• Pass annual city inspections.
• Post the permit and local contact information inside the unit.

Violations of these rules are subject to fines of $100-$500 per day. Three or more violations in a year can result in permit revocation.

The City of Rochester does actively enforce its short-term rental rules, conducting proactive inspections and responding to complaints. In 2022, the city issued over 100 citations to unpermitted operators, with fines totaling over $50,000.

In terms of taxes, short-term rental hosts in Rochester must collect and remit:

1. Monroe County Room Occupancy Tax: 6%
2. New York State Sales Tax: 4%
3. Rochester Hotel Unit Fee: $1.50 per night for 1-2 bedroom units, $2.50 per night for 3+ bedroom units

These taxes must be filed quarterly using tax return forms provided by the Monroe County Treasury and the New York State Department of Taxation and Finance.

It's important to note that other towns and villages within Monroe County may have their own additional short-term rental regulations. For example, the Town of Monroe limits permit holders to no more than one short-term rental property for the first 36 months, unless they have been a full-time resident and property owner in the town for at least three years.

Before starting an Airbnb business in Monroe County, carefully review the specific rules for your municipality. Consult with local officials if you have any questions about zoning, permitting, taxes, or other requirements. With proper planning and compliance, short-term rentals can provide a rewarding source of income in this popular region of upstate New York.

Short-Term Rental Licensing Requirements in Monroe County

To legally operate a short-term rental in Monroe County, New York, property owners must obtain a permit from the City of Rochester. As of January 1, 2023, all STRs are required to have this permit.

The application process involves submitting the following to the City of Rochester Zoning Office:

1. Completed Short Term Rental (STR) Permit Application
2. Proof of ownership (copy of current deed)
3. Floor plan of the rental unit
4. Proof of liability insurance ($500,000 minimum coverage)
5. Permit fee (varies based on number of bedrooms, see below)

The permit fees are as follows:

1. Studio/1 bedroom: $200
2. 2 bedrooms: $300
3. 3 bedrooms: $400
4. 4+ bedrooms: $500

These are annual fees that must be paid each year to renew the STR permit.

The typical processing time for an STR permit application is 2-4 weeks. The Zoning Office will review the application materials, verify information, and schedule an inspection of the property. The unit must pass this inspection before the permit can be issued.

Important ongoing requirements for STR permit holders include:

1. Limiting occupancy to 2 people per legal bedroom, plus 2 additional people per unit, up to a maximum of 12 people total
2. Providing one off-street parking space per rental unit
3. Observing quiet hours from 10pm to 7am daily
4. Prohibiting events, parties, or large gatherings without city approval
5. Including the permit number on all STR listings
6. Keeping the building exterior and yard clean and in good repair
7. Passing annual city inspections
8. Posting the permit and local contact info inside the unit

Failure to comply with these regulations can result in fines of $100-$500 per day. Three or more violations in a year may lead to permit revocation. In 2022, the City of Rochester issued over 100 citations to unpermitted STRs, with fines totaling over $50,000.

STR hosts in Monroe County must also collect and remit the following taxes quarterly:

1. Monroe County Room Occupancy Tax (6%)
2. New York State Sales Tax (4%)
3. Rochester Hotel Unit Fee ($1.50/night for 1-2 bedrooms, $2.50/night for 3+ bedrooms)

Tax forms are provided by the Monroe County Treasury and the New York State Department of Taxation and Finance.

It's important to note that other municipalities within Monroe County may have their own additional STR rules beyond the county-level requirements. For example, the Town of Monroe limits permit holders to no more than one STR property for the first 36 months, unless they have been a full-time resident and property owner in the town for at least 3 years.

Before starting the STR permit process, carefully review the specific regulations for your city, town, or village. Consult with local officials if you have any questions. Proper licensing and compliance will help ensure a successful and problem-free short-term rental operation in Monroe County.

Required Documents for Monroe County Short-Term Rentals

To obtain a Special Vacation Rental Permit in Monroe County, Florida, owners must submit the following documents as part of their application:

1. Proof of Ownership: Provide a copy of the current recorded deed establishing ownership of the property. This verifies that the applicant has the legal right to use the dwelling as a short-term rental.
2. Sewage Disposal System Certification: Submit an approved Florida Department of Health or Department of Environmental Protection inspection or certification confirming the adequacy of the sewage disposal system for use as a vacation rental. This ensures the property can safely handle the increased occupancy.
3. Property Details: Include information such as the gross square footage, number of rooms, bedrooms, bathrooms, kitchens, parking spaces, and any other details required to determine compliance with vacation rental requirements. This helps the county verify that the unit meets all applicable standards.
4. Sales Tax and Lodging Licenses: Provide a valid and current Florida Department of Revenue sales tax identification number under Chapter 212 (Florida Tax and Revenue Act) and a valid and current permit, license, or approval under Chapter 509 (public lodging establishments). These documents confirm that the owner is registered to collect and remit the required state taxes and is approved to operate as a lodging business.
5. Vacation Rental Manager Information: Submit the name, address, telephone number, and license number of the designated Vacation Rental Manager. All short-term rentals in Monroe County must have a licensed manager who resides in the same section of the county (Upper, Middle, or Lower Keys) as the rental property and is available 24/7 to respond to any issues.
6. Inspection Authorization: The applicant must sign a written statement granting permission to the county Code Enforcement Department to inspect the vacation rental premises prior to issuing the permit and at any time after issuance to verify compliance with county regulations.
7. Signatures: The application must be signed by all owners, authorized agents, and authorized managers of the rental property.
8. Neighbor Notification: Applicants must send a "Notice of Vacation Rental Use Application" by certified return mail to all property owners within 300 feet of the rental unit at least 30 days before the permit is approved. This notice informs neighbors of their right to appeal the permit decision.

In addition to the Special Vacation Rental Permit, all rental properties in Monroe County, both short-term and long-term, must also obtain a Business Tax License from the Tax Collector's Office.

The initial Special Vacation Rental Permit application fee is $490, while renewals are $100. Both initial and renewal applications require passing a Fire and Life Safety Inspection from the Fire Marshal's office, with fees ranging from $100-$300 based on the number of bedrooms.

By gathering these required documents and submitting them with the appropriate application and fees, property owners can obtain the necessary approvals to legally operate a short-term vacation rental in Monroe County, Florida. For the most current requirements, always refer to the county's official Planning & Environmental Resources Department website and the relevant sections of the Monroe County Code of Ordinances.

Monroe County Short-Term Rental Taxes

Short-term rental operators in Monroe County, New York must collect and remit several taxes related to their business. It's important to understand these tax obligations to remain compliant and avoid penalties.

Monroe County Room Occupancy Tax (3%)

Monroe County imposes a 3% hotel excise tax on all short-term rentals. Hosts must register with the Monroe County Treasurer's Office to obtain a Hotel Room Excise Tax Certificate. There is no fee for this one-time registration.

Airbnb collects and remits this 3% tax on behalf of its hosts. However, hosts must still register their property and submit a quarterly tax form to the county indicating gross receipts and that no additional tax is owed. For non-Airbnb rentals, hosts are responsible for collecting the 3% tax from guests and remitting it to the county quarterly.

New York State Sales Tax (6%)

New York State collects a 6% sales tax on all short-term rentals. Hosts must register each property with the state to obtain a Sales Tax Certificate of Authority.

Airbnb also collects and remits this 6% tax for its listings. Hosts still need to register to receive a sales tax ID number, which is required for some local STR permits. Non-Airbnb rentals must have the 6% tax collected by the host and paid to the state semi-annually via the online NY Sales Tax Web File system.

There are no additional sales taxes levied by Monroe County or its municipalities on short-term rentals beyond the statewide 6% rate.

Income Taxes

Income earned from short-term rentals is generally subject to federal, state, and local income taxes. Hosts should report their rental income on their annual tax returns. The exact forms and calculations depend on whether the STR is classified as a business or an investment for tax purposes.

Possible Deductions

STR operators can typically deduct expenses directly related to their rental business to reduce their taxable income. Some common deductible expenses may include:

1. Mortgage interest
2. Property taxes
3. Rental unit utilities
4. Cleaning and maintenance costs
5. Supplies and linens
6. Insurance premiums
7. Advertising and platform fees
8. Depreciation of furniture and appliances

Hosts should maintain detailed records of their rental income and expenses, and consult with a qualified tax professional to ensure they are managing their tax liabilities correctly.

By understanding and complying with these tax obligations, short-term rental hosts in Monroe County can operate their businesses responsibly and avoid costly mistakes. Stay informed of any changes to tax rates or requirements by regularly checking official sources like the Monroe County and New York State tax agency websites.

New York State Short-Term Rental Rules

In addition to Monroe County's specific regulations, short-term rental hosts must also comply with New York State laws that apply statewide. These rules establish a baseline for STR operations, which can then be further restricted by county or municipal ordinances.

New York State Multiple Dwelling Law

The New York State Multiple Dwelling Law prohibits renting out an entire apartment in most buildings with three or more units for less than 30 days unless the permanent tenant is present during the stay. This effectively bans many unhosted short-term rentals in larger buildings statewide.

However, it is legal to rent out a portion of your apartment (such as a spare bedroom) even in these larger buildings, as long as you are also present in the unit during the guest's stay.

New York State Fire and Safety Standards

All short-term rentals in New York State must meet state fire and safety standards, including working smoke detectors, carbon monoxide detectors, fire extinguishers, and adequate means of egress. Hosts are responsible for ensuring their property is up to code before renting to guests.

New York State Tax Law

Under state tax law, short-term rentals are subject to state sales tax (4%) and any applicable county hotel taxes, such as Monroe County's 3% occupancy tax. Hosts must register with the state and county tax departments to receive a Certificate of Authority to collect these taxes from guests and remit them to the proper agencies.

Airbnb collects and remits these state and county taxes on behalf of its hosts in Monroe County. However, hosts on other platforms like VRBO are responsible for collecting and remitting the taxes themselves.

Short-term rental income is also subject to state income tax. Hosts must report their STR earnings on their annual New York State tax return and pay tax on any profits. Certain expenses directly related to the STR business may be deducted.

Proposed Statewide Registration System

In 2022, New York State lawmakers proposed a bill to create a statewide registration system for short-term rentals. If passed, this law would require all STR hosts to register their properties with the state and obtain a registration number to include on all listings. The system would also track the number of nights each property is rented annually.

The goal of this proposed registration is to improve enforcement of existing STR laws and collect more complete data on the scale of short-term rental activity in the state. As of July 2024, this bill has not yet been enacted, but Monroe County hosts should monitor its progress, as it would add another compliance step if passed into law.

By understanding and following these New York State rules in addition to Monroe County's local ordinances, short-term rental operators can ensure they are legally compliant at both levels of government. Failure to adhere to state regulations can result in fines, tax penalties, and other enforcement actions independent of the county's requirements.

Does Monroe County Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, Monroe County, New York appears to be relatively strict in enforcing its short-term rental regulations compared to many other jurisdictions. The county actively monitors STR listings and conducts proactive inspections to identify unpermitted operators.

In 2022, the City of Rochester, which is located within Monroe County, issued over 100 citations to STR hosts operating without proper permits, with fines totaling over $50,000. This suggests a high level of enforcement and an unwillingness to let STR violations slide.

Compared to more STR-friendly cities like Savannah, Georgia or Gatlinburg, Tennessee that have streamlined permitting processes and minimal restrictions, Monroe County is much less accommodating to Airbnb-style rentals. The county's occupancy limits, parking requirements, annual inspections, and potential neighbor appeals create significant barriers to entry and ongoing compliance challenges for hosts.

That said, some hosts on BiggerPockets and Reddit report operating STRs in Monroe County despite the strict rules, either by obtaining proper permits or by flying under the radar in more remote areas of the county. However, the general consensus is that the risks and costs of non-compliance are high, with substantial fines and potential permit revocations for repeat violations.

Overall, while it may be possible to run a short-term rental business in Monroe County, the county's stringent regulations and active enforcement make it a relatively unfriendly environment compared to many other markets. Hosts should carefully weigh the compliance hurdles and potential penalties before choosing to operate STRs in this jurisdiction.

How to Start a Short-Term Rental Business in Monroe County

Starting a short-term rental business in Monroe County, New York requires careful planning and compliance with local regulations. Here are the key steps to get started:

• Determine eligibility: Review the Monroe County and municipal zoning codes to confirm your property is eligible for STR use. In most areas, STRs are allowed in single-family homes and a portion of multi-family units if the owner is present. Properties in some zoning districts may be prohibited from STR use.
• Create a business plan: Develop a detailed business plan that outlines your target market, pricing strategy, marketing approach, and financial projections. Research the local STR market to ensure your plan is realistic and competitive.
• Register your business: Choose a business structure (sole proprietorship, LLC, corporation) and register your STR with the state and county. Obtain a federal Employer Identification Number (EIN) for tax purposes.
• Obtain permits and licenses: Apply for a Monroe County Short Term Rental Permit from the local zoning office. Submit all required documents, including proof of ownership, a floor plan, proof of insurance, and the application fee. Obtain a New York State Sales Tax Certificate of Authority.
• Prepare your property: Ensure your rental unit is safe, clean, and well-maintained. Install smoke detectors, carbon monoxide detectors, and fire extinguishers. Provide essential amenities and furnishings for guests. Consider hiring a professional photographer to showcase your property in its best light.
• Create a house manual: Develop a comprehensive house manual that includes check-in/check-out procedures, house rules, emergency contacts, and local recommendations. Provide this manual to guests in both digital and physical formats.
• List your property: Create listings on popular STR platforms like Airbnb and VRBO. Use high-quality photos, detailed descriptions, and competitive pricing to attract bookings. Be responsive to inquiries and maintain a high response rate.
• Manage bookings and guests: Use a reliable system to manage reservations, communicate with guests, and coordinate cleanings between stays. Consider hiring a professional property manager if you're unable to handle these tasks yourself.
• Comply with ongoing regulations: Adhere to all Monroe County STR rules, including occupancy limits, parking requirements, quiet hours, and annual inspections. Collect and remit all required taxes (county room occupancy tax and state sales tax) on time.
• Maintain accurate records: Keep detailed records of all income and expenses related to your STR business. Use this information to file accurate tax returns and make informed decisions about pricing and investments.

Tips for success:

1. Focus on providing exceptional guest experiences to earn positive reviews and repeat bookings.
2. Optimize your listings with search-friendly titles, detailed amenity information, and seasonal pricing adjustments.
3. Maintain open communication with neighbors to address any concerns proactively.
4. Stay up-to-date on changes to local STR regulations and tax requirements.
5. Reinvest a portion of your profits into property upgrades and amenity improvements.
6. Consider offering special packages or discounts during slower seasons to maintain occupancy rates.

By following these steps and prioritizing compliance and guest satisfaction, you can build a successful short-term rental business in Monroe County. Remember to consult with legal and tax professionals to ensure you're operating within all applicable laws and regulations.

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

For questions about short-term rental regulations and zoning in Monroe County, Florida, contact the following offices:

Monroe County Planning & Environmental Resources Department

• Phone: (305) 289-2500
• Email: planning@monroecounty-fl.gov
• Address: 2798 Overseas Highway, Suite 400, Marathon, FL 33050
• Website: https://www.monroecounty-fl.gov/597/Planning-Environmental-Resources

The Planning Department handles applications for Special Vacation Rental permits and can provide information on zoning requirements, occupancy limits, and other county regulations.

Monroe County Code Compliance Department

• Phone: (305) 289-2810
• Email: codecompliance@monroecounty-fl.gov
• Website: https://www.monroecounty-fl.gov/149/Code-Compliance

Code Compliance investigates complaints about illegal vacation rentals and enforces the county's short-term rental ordinances. They can provide guidance on compliance issues and the fining process for violations.

Monroe County Tax Collector's Office

• Phone: (305) 295-5010
• Email: info@monroetaxcollector.com
• Website: https://www.monroetaxcollector.com/tourist-development-tax

The Tax Collector's Office handles registration for the county's Tourist Development Tax (4%) and the Florida Transient Rental Tax (6%), which apply to all short-term rentals. They can assist with obtaining a Business Tax Receipt, which is required for all rental properties.

In addition to these official resources, short-term rental hosts in Monroe County may find useful information and support through the following online communities:

• The Florida Vacation Rental Management Association (FVRMA) has an active Facebook group where hosts can connect and share experiences: https://www.facebook.com/groups/fvrma
• The "Florida Short Term Rental Owners" private Facebook group has over 1,000 members discussing STR regulations, marketing, and best practices across the state: https://www.facebook.com/groups/floridashorttermrentalowners
• The "Monroe County, FL Vacation Rentals" Facebook page shares local news and updates relevant to STR operators in the Florida Keys: https://www.facebook.com/MonroeCountyVacationRentals
• Airbnb has an online community center where hosts can ask questions and interact with each other. The Florida-specific board can be found at: https://community.withairbnb.com/t5/Florida/bd-p/fl

By engaging with these government offices and connecting with fellow hosts through online groups, short-term rental operators in Monroe County can stay informed about local regulations and learn strategies for running successful and compliant vacation rental businesses in the Florida Keys.

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

Based on discussions in online forums like Reddit, Bigger Pockets, and the Airbnb Community Center, short-term rental hosts in Monroe County have expressed frustration and concern about the strict local regulations and active enforcement.

On the Airbnb Community forum, one host shared their experience of being fined immediately without warning for renting their property weekly in an area zoned for 28+ day rentals. They noted that the county is citing dozens of hosts per month, with first-time fines calculated as the weekly rental rate times 4 weeks (e.g. a $3,000/week rental would incur a $12,000 fine).

This host also mentioned that attempts to overturn the restrictive laws in the Florida state legislature have failed in recent years, leaving municipalities free to impose their own rules. They worry that the crackdown on short-term rentals will hurt the local economy and home construction industry.

In a Reddit thread about Florida short-term rental regulations, another Monroe County host lamented that the county's 28-day minimum stay requirement in many areas makes it impossible for them to rent to vacationers and tourists looking for shorter trips. They argue that this will drive visitors to other markets that are more welcoming to short stays.

On Bigger Pockets, a real estate investing forum, one user considering purchasing a property in the Florida Keys to use as a short-term rental was warned about Monroe County's strict rules by several commenters. They noted that the county aggressively monitors listings sites and levies substantial fines on violators, making it a risky market for investors expecting steady Airbnb income.

Overall, the sentiment among Monroe County hosts on these forums seems to be one of frustration with the county's restrictive zoning laws and proactive enforcement efforts. Many feel that the regulations are overly burdensome and are driving away tourists and hurting local business owners and workers who depend on visitor spending.

While some hosts continue to operate STRs in the county, they do so knowing the risks of incurring significant fines if they are caught in violation of local ordinances. Most recommend carefully researching the specific zoning and permitting requirements for each property before buying or listing it as a short-term rental in Monroe County.

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