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

Starting a Short-Term Rental Business in Montauk

Montauk, a hamlet in the town of East Hampton, New York, has implemented strict regulations governing short-term rentals such as those offered through platforms like Airbnb and VRBO. These rules aim to preserve the character of residential neighborhoods while addressing concerns about noise, overcrowding, and the impact on the local housing market.

Under the East Hampton Town Code, property owners in Montauk are limited to a maximum of two short-term rentals (defined as rentals less than two weeks) within any six-month period. This restriction applies to all residential properties, regardless of whether the owner resides on the premises or not.

Additionally, all rental properties in Montauk, including those used for short-term rentals, must be registered with the East Hampton Town Rental Registry and obtain a valid Rental Registry Number. Failure to register or include the Rental Registry Number in advertisements can result in fines ranging from $150 to $15,000, depending on the violation.

In 2022, the Town of East Hampton took legal action against a Montauk property owner who allegedly rented out their residence more than 50 times over a nine-month period, violating the two-rental limit and earning over $100,000 in rental income. The property owner faced 57 violation tickets and potential fines exceeding $200,000.

On local real estate forums like Bigger Pockets, some investors have discussed operating multiple Airbnb properties in Montauk without facing significant crackdowns from authorities, as long as they maintain good relationships with neighbors and avoid causing disturbances. However, these are anecdotal accounts, and the regulations can change over time.

Overall, while short-term rentals are permitted in Montauk, hosts must comply with the town's strict rules, including the two-rental limit per six-month period and the requirement to register and display a valid Rental Registry Number. Failure to do so can result in substantial fines and legal consequences.

Short-Term Rental Licensing Requirement in Montauk

In Montauk, which is part of the Town of East Hampton, all rental properties, including those used for short-term rentals, must be registered with the East Hampton Town Rental Registry and obtain a valid Rental Registry Number.

To register a short-term rental property in Montauk, hosts must follow these steps:

• Submit a notarized Rental Property Registration Form providing details such as the property owner's name, address, number of rooms/bedrooms, and the rental term.
• Complete a notarized Rental Property Self-Inspection Checklist to ensure the property meets safety standards, like having visible house numbers, working smoke detectors, and proper electrical wiring.
• Provide a copy of the latest Certificate of Occupancy for the property or obtain confirmation from the Building Department that one is on file.
• Pay a $100 filing fee for a two-year registration period.

Once the application is approved and the property passes inspection, the host will receive a Rental Registry Number. This number must be included in all advertisements listing the property for rent.

It's important to note that the Town of East Hampton limits property owners to a maximum of two short-term rentals (less than two weeks) within any six-month period, regardless of whether the owner resides on the premises or not.

Failure to register a rental property or include the Rental Registry Number in advertisements can result in fines ranging from $150 to $15,000, depending on the violation. In some cases, imprisonment for up to six months is also possible.

The Rental Registry is designed to help the town enforce existing codes related to short-term rentals, overcrowding, and safety standards. It also provides a mechanism for the town to collect data on rental properties and ensure compliance with local regulations.

Required Documents for Montauk Short-Term Rentals

To register a short-term rental property in Montauk, which is part of the Town of East Hampton, hosts must submit the following documents:

1. Notarized Rental Property Registration Form: This form requires details such as the property owner's name, address, number of rooms/bedrooms, and the rental term.
2. Notarized Rental Property Self-Inspection Checklist: Hosts must complete this checklist to ensure the property meets safety standards like having visible house numbers, working smoke detectors, proper electrical wiring, and compliance with pool safety requirements (if applicable).
3. Certificate of Occupancy: A copy of the latest Certificate of Occupancy for the property must be provided, or confirmation from the Building Department that one is on file.
4. Filing Fee: A $100 filing fee is required for a two-year registration period.

It's important to note that the Rental Property Self-Inspection Checklist can be completed by the property owner or a licensed architect, licensed engineer, or licensed home inspector.

Once the application is approved and the property passes inspection, the host will receive a Rental Registry Number. This number must be included in all advertisements listing the property for rent.

If any information on the Rental Property Registration Form changes during the two-year rental period, such as a change in the rental term, the start of a new rental term, or the number of tenants or bedrooms, the property owner must submit a notarized Rental Property Registration Update Form at no additional charge.

Failure to register a rental property or include the Rental Registry Number in advertisements can result in fines ranging from $150 to $15,000, depending on the violation. In some cases, imprisonment for up to six months is also possible.

Montauk Short-Term Rental Taxes

Operating a short-term rental in Montauk, which is part of the Town of East Hampton, comes with specific tax obligations that hosts must comply with.

Firstly, hosts are required to collect and remit the New York State Sales Tax on all short-term rental income. The current state sales tax rate is 4%.

Additionally, the Town of East Hampton imposes a 3% Lodging Tax on all short-term rentals, defined as stays of less than two weeks (14 days). This tax applies to the total rental charge, including any cleaning fees or other mandatory charges.

It's important to note that short-term rental properties in Montauk are also subject to the Suffolk County Hotel/Motel Tax, which is currently set at 3% of the per-diem rental rate. This tax must be remitted to the Suffolk County Treasurer's Office on a quarterly basis.

Failure to collect and remit these taxes can result in significant penalties and fines. The Suffolk County Hotel/Motel Tax, for instance, carries a penalty of up to $1,000 and/or a year in prison for failing to register or remit the tax, in addition to a 5% penalty for late remittance and 1% interest per month on the unpaid amount.

To ensure compliance, hosts should maintain accurate records of their rental income, occupancy rates, and taxes collected. It's also advisable to consult with a tax professional or the relevant authorities for guidance on tax reporting and filing requirements specific to short-term rentals in Montauk.

By understanding and adhering to the applicable tax regulations, hosts can avoid potential legal issues and operate their short-term rental business in Montauk legally and responsibly.

Long Island Wide Short-Term Rental Rules

While New York State has statewide regulations prohibiting short-term rentals in most residential multi-family dwellings, Long Island municipalities have implemented additional local rules governing vacation rentals.

In Suffolk County, which covers a large portion of Long Island, there is a 5.5% hotel/motel occupancy tax that applies to short-term rentals. Hosts are required to register with the county and collect this tax from guests on all rentals less than 90 days.

However, individual towns within Suffolk County have enacted their own restrictions as well. For example, the town of Brookhaven is considering a new law that would prohibit non-owner occupied short-term rentals of less than 28 days, with some exceptions for bed and breakfasts or hotels with existing permits.

In contrast, other areas, like the town of Huntington, currently do not have any specific regulations targeting short-term rentals beyond the county occupancy tax requirement.

On the western end of Long Island, Nassau County does not currently impose any special taxes or restrictions on short-term rentals at the county level. However, local municipalities may have their own rules in place.

It's evident that short-term rental regulations can vary significantly across different areas of Long Island. Some towns take a more restrictive approach, while others have yet to implement substantial vacation rental policies beyond standard hotel taxes.

Additionally, many residential leases and community covenants may prohibit subletting or short-term rentals, creating another potential barrier for some hosts even if they comply with local government rules.

Overall, hosts looking to operate short-term rentals on Long Island must carefully research and comply with all applicable county, town, and community-specific regulations in their area. Consulting local legal experts is advisable to ensure full compliance and avoid potential fines or legal issues.

Does Montauk Strictly Enforce STR Rules? Is Montauk Airbnb Friendly?

Based on discussions on online forums like Reddit and Bigger Pockets, as well as reports from local media, it appears that Montauk is not particularly Airbnb-friendly compared to some other cities, and the authorities actively enforce short-term rental rules through fines and legal actions against violators.

On the Bigger Pockets real estate forum, investors have discussed the challenges of operating short-term rentals in Montauk due to the strict regulations imposed by the Town of East Hampton. One investor mentioned facing significant fines and legal consequences for violating the two-rental limit per six-month period.

Similarly, on the Long Island subreddit, users have shared experiences of hosts in Montauk being issued multiple violation tickets and facing potential fines exceeding $200,000 for renting out their properties more than the allowed number of times.

Local media reports have also highlighted instances where the Town of East Hampton has taken legal action against property owners who repeatedly violated the short-term rental laws. In one high-profile case, a Montauk property owner was issued 57 tickets for renting out their residence more than 50 times over a nine-month period, earning over $100,000 in rental income.

While some hosts may find ways to minimally comply with the rules or attempt to circumvent them, the overall sentiment from these online communities and news reports suggests that Montauk is not particularly Airbnb-friendly. The town appears to be actively enforcing its strict regulations, including the two-rental limit per six-month period, rental registration requirements, and occupancy restrictions.

Hosts who blatantly disregard these rules risk facing substantial fines, legal consequences, and potential incarceration. The Town of East Hampton has demonstrated a willingness to pursue legal action against violators, even going as far as subpoenaing rental records from platforms like Airbnb to build cases against offenders.

So, based primarily on anecdotal evidence and media reports, Montauk can be considered relatively unfriendly towards short-term rentals compared to some other cities. While the practice is not outright banned, the strict enforcement of regulations and the potential for severe penalties make it a challenging environment for hosts operating short-term rentals in the area.

How to Start a Short-Term Rental Business in Montauk

To start a short-term rental business in Montauk, follow these steps:

1. Verify Zoning Compliance: Ensure that your property's zoning allows for short-term rentals. Check with the East Hampton Town Planning Department to confirm that your property is zoned for short-term rental use.
2. Register Your Rental Property: Register your rental property with the East Hampton Town Rental Registry and obtain a valid Rental Registry Number. This involves submitting a notarized Rental Property Registration Form, a notarized Self-Inspection Checklist, a copy of the Certificate of Occupancy, and paying the $100 filing fee.
3. Pass the Inspection: Schedule an inspection with the town's housing inspector once your application is approved. Ensure your rental unit complies with building, sanitary, and safety codes.
4. Display the Rental Registry Number: Once you receive the Rental Registry Number, ensure it is included in all advertisements listing your property for rent.
5. Understand Rental Limits: Familiarize yourself with the town's rental limits. Montauk allows a maximum of two short-term rentals (less than two weeks) within any six-month period, regardless of whether the owner resides on the premises or not.
6. Collect and Remit Taxes: Register with the appropriate authorities to collect and remit the required taxes, including the New York State Sales Tax, Suffolk County Hotel/Motel Tax, and the East Hampton Town Lodging Tax.
7. Maintain Accurate Records: Keep detailed records of your rental income, occupancy rates, and taxes collected for compliance purposes.
8. Renew Registration: Renew your Rental Registry registration every two years by submitting the required forms and fees.
9. Monitor Regulation Changes: Stay informed about any changes or updates to short-term rental regulations in Montauk and the Town of East Hampton, and ensure ongoing compliance with the latest rules and guidelines.
10. Prioritize Guest Safety and Neighborhood Relations: Provide emergency exit diagrams, local contact information, and instructions for waste disposal to guests. Maintain good relationships with neighbors and avoid causing disturbances that could attract unwanted attention from authorities.

By following these steps, you can establish a legal and compliant short-term rental business in Montauk. Remember to prioritize guest safety, maintain accurate records, and stay up-to-date with the latest regulations to avoid potential fines or legal issues.

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

If you have questions or need assistance regarding short-term rental regulations and zoning in Montauk, you can contact the following:

East Hampton Town Planning Department

Phone: 631-324-2178
Email: planningdept@ehamptonny.gov
Address: 300 Pantigo Place, Suite 103, East Hampton, NY 11937

The Planning Department oversees zoning bylaws and regulations related to short-term rentals in Montauk and other areas within the Town of East Hampton. You can reach out to them for inquiries about zoning compliance, permitted uses, and any necessary approvals or permits for operating a short-term rental.

Individual Staff Contacts:

For specific inquiries or to speak with a staff member directly, you can contact:

1. Jeremy Samuelson, Planning Director: jsamuelson@ehamptonny.gov
2. JoAnne Pahwul, Senior Planner: jpahwul@ehamptonny.gov

It's recommended to first check the Town of East Hampton's website (www.ehamptonny.gov) for comprehensive information on short-term rental regulations, zoning maps, and online resources. If you cannot find the information you need on the website, contacting the Planning Department or the individual staff members listed above can provide further assistance and clarification.

For general inquiries or to provide feedback, you can also contact the Town of East Hampton's main office:

East Hampton Town Hall
159 Pantigo Road, East Hampton, NY 11937
Phone: 631-324-4141
Email: supervisor@ehamptonny.gov

The Town Hall is open Monday to Friday, 8:30 a.m. to 4:30 p.m., except on holidays.

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

From discussions on online forums like Reddit and Bigger Pockets, it appears that many Airbnb hosts in Montauk operate their short-term rentals despite the existing regulations, and the rules are not strictly enforced by the local authorities.

On the Long Island subreddit, one user mentioned that while Montauk has regulations like a two-rental limit per six-month period and rental registration requirements, these rules are not always followed by hosts. The user claimed that as long as hosts maintain good relationships with neighbors and avoid causing disturbances, they can often operate Airbnb listings without facing significant crackdowns.

Another Reddit thread discussed the challenges of finding affordable housing in Montauk, with some users suggesting that many property owners prefer to operate short-term rentals instead of long-term leases, despite the regulations in place.

On the Bigger Pockets real estate forum, an investor inquired about purchasing a property in Montauk specifically for short-term rental purposes. While some responses cautioned about the local regulations, others claimed to be running multiple Airbnb properties in the area without facing strict enforcement actions from the authorities.

Overall, the sentiment from these online communities is that while Montauk has regulations around short-term rentals, the local authorities do not appear to be extremely strict in enforcing these rules compared to some other municipalities. Many hosts seem to be able to operate Airbnb and similar rentals without facing significant crackdowns or penalties, as long as they maintain good relationships with neighbors, avoid major disruptions, and generally comply with the overall spirit of the regulations.

However, it's important to note that these are anecdotal accounts, and regulations can change over time. Hosts should still exercise caution and ensure compliance with the latest rules and guidelines set forth by the Town of East Hampton and other relevant authorities to avoid potential fines or legal consequences.

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.