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

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

Short-term rental regulations in Nassau County, New York vary by town and village. While there is no blanket ban on short-term rentals for the entire county, some individual towns have enacted restrictions on rentals less than 28-30 days.

Starting a Short-Term Rental Business in Nassau County

The rules for operating a short-term rental business in Nassau County depend on the specific town or village. For example:

• The Town of Hempstead amended its code in 2017 to restrict residential property rentals to a minimum of 28 days. It also requires short-term rental operators to obtain a permit, pay a fee, and submit to property inspections. Violators can face fines up to $10,000.
• The Town of North Hempstead passed a law in 2022 prohibiting short-term rentals under 30 days in most cases. No rental occupancy permits are granted for short-term rental properties.
• The Town of Oyster Bay does not appear to have specific laws banning short-term rentals as of 2021, based on discussions in online forums. However, this could change as more towns review and update their codes.

Homeowners in Nassau County have shared stories online of receiving violation notices and hefty fines for operating unpermitted short-term rentals. One Hempstead resident said they finished their basement to add a rental unit, only to learn short-term rentals under 28 days were prohibited in the town.

In addition to any local regulations, short-term rental operators in Nassau County must collect and remit state and county taxes totaling 13.25% (4% NY sales tax, 5% NY occupancy tax, 4.25% Nassau County sales tax). Failing to comply with tax requirements can result in penalties.

Overall, the layers of town ordinances and tax obligations make starting a short-term rental business in Nassau County challenging. Hosts must carefully research their local laws, obtain necessary permits, and factor in additional costs before deciding to engage in short-term renting. Consulting a local tax professional is advised to ensure full compliance.

Short-Term Rental Licensing Requirements in Nassau County

Based on the information available on the official Nassau County website, there does not appear to be a specific county-wide licensing requirement for short-term rentals like Airbnb and VRBO properties. The county website lists various business licenses and permits issued by the Department of Consumer Affairs, but short-term rentals are not included.

However, this does not mean short-term rentals are unregulated in Nassau County. The rules and restrictions are largely determined by the individual town or village where the rental property is located. For example:

1. The Town of Hempstead requires short-term rentals to be a minimum of 28 days. Operators must obtain a permit, pay a fee, and submit to inspections. Fines for violations can reach $10,000.
2. The Town of North Hempstead prohibits most short-term rentals under 30 days and does not issue rental occupancy permits for them.
3. Other towns like Oyster Bay do not seem to have specific bans on short-term rentals under 30 days as of 2021, but rules could change as towns update their codes.

Where short-term rentals under 30 days are allowed by the town, hosts still must collect and remit the 13.25% in state and county taxes. This includes the 4% NY sales tax, 5% NY occupancy tax, and 4.25% Nassau County sales tax.

Penalties for operating an unlicensed or unpermitted short-term rental where prohibited by the town can be severe. In Hempstead, fines range from $3,000-$5,000 and/or imprisonment up to 15 days for a third offense. Failure to collect and remit the required taxes can also result in penalties from the state.

In summary, while there is no universal short-term rental license issued by Nassau County, hosts must carefully research the specific rules of their town and ensure they obtain any required local permits. Consulting a tax professional is also advised to maintain compliance with state and county tax obligations. The consequences for operating an illegal short-term rental can be steep.

Required Documents for Nassau County Short-Term Rentals

The specific documents required to operate a short-term rental vary by town in Nassau County. However, most towns that allow short-term rentals under 30 days require a rental permit or registration. Here are the key documents and requirements for some Nassau County towns:

Town of Hempstead

To obtain a rental occupancy permit in the Town of Hempstead, the following is required:

1. Completed Rental Property Registration Form or Renewal Form, signed and notarized
2. Rental permit application fee ($300 for new, $450 for renewal)
3. Rental permit fee ($500 for first unit, $200 for each additional unit)
4. Property must be in compliance with all Town of Hempstead codes and regulations
5. Transient rentals under 28 days are not permitted

Town of North Hempstead

As of 2022, the Town of North Hempstead prohibits short-term rentals under 30 days in most cases. No rental occupancy permits are granted for short-term rental properties.

Other Nassau County Towns

Requirements in other Nassau County towns like Oyster Bay are less clear as of 2021. Short-term rental operators should contact their local town or village offices to determine if any permits or registrations are required.

In addition to local permits, all short-term rental operators in Nassau County must register with the county to collect and remit the required taxes:

1. Nassau County Certificate of Authority to Collect Tax on Hotel and Motel Rentals
2. New York State Certificate of Authority to Collect Sales and Use Tax
3. Registration for NY Hotel Unit Fee ($1.50 per day per unit)

These tax certificates and registrations ensure the proper 13.25% in state and county taxes are collected and paid on short-term rentals. This includes the 4% NY sales tax, 5% NY occupancy tax, and 4.25% Nassau County sales tax.

In summary, a short-term rental permit from the town is the key requirement where rentals under 30 days are allowed in Nassau County. This is in addition to registering with the county and state to collect the required taxes. Failure to obtain necessary permits or pay taxes can result in significant penalties. Short-term rental operators must research their local town requirements carefully to ensure compliance.

Nassau County Short-Term Rental Taxes

Short-term rental operators in Nassau County are required to collect and remit several state and local taxes on rentals less than 30 days. Here is a breakdown of the applicable taxes:

1. New York State Sales Tax: The state imposes a 4% sales tax on short-term rentals. This tax is administered by the New York State Department of Taxation and Finance.
2. New York State Occupancy Tax: In addition to the sales tax, the state charges a 5% occupancy tax, also known as the "bed tax", on rentals under 30 days. This brings the total state tax rate to 9%.
3. Nassau County Sales Tax: The county levies an additional 4.25% sales tax on short-term rentals, on top of the state taxes. This increases the total tax rate to 13.25%.
4. Local Hotel/Motel Occupancy Taxes: Some towns in Nassau County, like Hempstead, charge their own occupancy taxes. Hempstead imposes a 3% hotel/motel tax on rentals under 29 days, bringing the total tax rate there to 16.25%.

Short-term rental hosts are responsible for registering with the appropriate state and county tax authorities, and collecting and remitting the taxes monthly or quarterly, depending on the amount collected. Failure to comply can result in penalties and interest.

Potential Tax Deductions

While short-term rental operators have significant tax obligations, they may also be able to deduct certain expenses to reduce their tax liability. Some common deductions include:

1. Depreciation of the rental property and furnishings
2. Mortgage interest, property taxes, and insurance
3. Cleaning and maintenance fees
4. Utilities like electricity, water, and internet
5. Supplies for guests like toiletries, linens, and coffee
6. Airbnb host service fees and commissions
7. Advertising and marketing costs
8. Home office expenses, if a portion of the home is used exclusively for rental management

It's important to keep detailed records and consult with a tax professional to ensure all deductions are properly claimed and documented. The specific deductions a host qualifies for will depend on their unique circumstances.

Overall, the multiple layers of state and local taxes on short-term rentals in Nassau County can be complex and costly for hosts. But with proper planning and professional guidance, hosts may be able to offset some of these costs through allowable tax write-offs. Careful consideration of all tax obligations and potential deductions is essential for running a profitable and compliant short-term rental business in the county.

New York State-Wide Short-Term Rental Rules

In addition to local regulations in Nassau County towns, short-term rental hosts must also comply with state-wide laws in New York. Here are the key state-level rules that impact Nassau County Airbnb and VRBO operators:

New York State Multiple Dwelling Law

The New York State Multiple Dwelling Law prohibits renting out apartments in "Class A" buildings (which include most residential properties) for periods of less than 30 days when the host is not present. This effectively bans most short-term rentals in multi-family buildings across the state, with a few exceptions for owner-occupied properties where the host remains on-site.

New York State Sales Tax

New York State imposes a 4% sales tax on all short-term rentals less than 90 days. This is in addition to the 4.25% Nassau County sales tax, for a total sales tax rate of 8.25% that hosts must collect and remit.

New York State Occupancy Tax

The state also levies a 5% occupancy tax, also known as the "bed tax", on rentals under 30 days. Combined with the sales taxes, this brings the total state tax obligation for Nassau County short-term rentals to 13.25%.

Proposed State-Wide Registration Law

In April 2024, New York State lawmakers proposed a new bill that would create a state-wide short-term rental registry. If passed, the law would require all vacation rental hosts to register their properties with the state every two years. Municipalities with their own registries would share data with the state system.

While not yet in effect as of July 2024, this potential state-wide registration requirement is something Nassau County hosts should monitor closely. It would add another compliance obligation on top of local town rental permit rules.

Overall, while short-term rental regulations are primarily determined at the town level in Nassau County, hosts cannot ignore their state-level tax and legal responsibilities. A careful review of both state and local requirements is essential to operating legally and avoiding penalties. Consultation with a local tax professional is advised to ensure full compliance.

Does Nassau County Strictly Enforce STR Rules?

Based on discussions among hosts on forums like BiggerPockets and Reddit, Nassau County appears to be one of the stricter areas in the U.S. when it comes to short-term rental regulations and enforcement. Many towns in the county, such as Hempstead and North Hempstead, have outright bans on rentals less than 28-30 days in most cases.

Nassau County is generally not considered Airbnb-friendly compared to other major markets. Hosts have reported receiving violation notices and hefty fines of up to $10,000 for operating unpermitted short-term rentals, even in their own homes. One host said they were reported to the town and fined $500 just for renting out rooms to help pay their mortgage.

While some hosts still attempt to operate under the radar, the risks and consequences seem to be high if caught. Reports of neighbor complaints leading to inspections and fines are not uncommon. The layers of town ordinances and permit requirements, on top of stringent enforcement, make Nassau County a challenging and potentially costly place to run a short-term rental business.

In one case, a host looking to rent out an accessory apartment on their property was told by the town that it could never be a legal multifamily home and that they must remain owner-occupied to even have a chance at a permit. This illustrates the county's restrictive stance on short-term rentals in residential areas.

Overall, while enforcement may vary somewhat by town, Nassau County as a whole appears to be cracking down hard on short-term rentals. Operating without the proper permits is very risky based on host experiences. The county seems to prioritize preserving residential neighborhoods and housing stock over allowing Airbnb-style rentals to proliferate. Hosts should carefully weigh the potential costs and consequences before attempting to circumvent the rules in this jurisdiction.

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

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

1. Research your local town's short-term rental laws: Nassau County does not have a universal short-term rental policy. Rules vary by town and village. In Hempstead, rentals under 28 days are prohibited and require a permit. North Hempstead bans most rentals under 30 days. Research your specific town's ordinances thoroughly.
2. Determine if your property is eligible: Based on your town's laws, confirm your property is in an eligible zone for short-term rentals. In some areas like Fernandina Beach, only properties in certain districts like R-3 or those grandfathered in before a certain date can get a short-term rental permit. Check your property's zoning and eligibility.
3. Obtain necessary permits and licenses: If your property qualifies, apply for any required permits with your town. Hempstead, for example, requires a Rental Registration Form, fees ranging from $300-$500, and passing town inspections. Submit applications, pay fees, and schedule inspections promptly to avoid delays.
4. Register with tax authorities: Short-term rentals in Nassau County must collect state and county sales taxes totaling 13.25% (4% NY sales tax, 5% NY occupancy tax, 4.25% Nassau County sales tax). Register with the state and county for certificates of authority to collect these taxes.
5. Prepare your property: Outfit your rental with necessary furniture, linens, and amenities. Ensure the space is safe, clean, and compliant with any town property standards. Consider hiring a professional cleaning service between guests.
6. Create a listing: Once your property is ready and compliant, create a listing on popular vacation rental sites like Airbnb or VRBO. Take high-quality photos, write a compelling description, and set competitive rates. Be transparent about your rental's features and any house rules.
7. Manage bookings and guests: Respond promptly to booking inquiries and guest questions. Use a reservation system to avoid double bookings. Provide check-in instructions and local recommendations. Be available to address any issues that may arise during stays.
8. Stay compliant and keep good records: Regularly review your town's short-term rental regulations for any changes. Renew permits as required and maintain detailed records of compliance. Keep thorough accounting of rental income and expenses for tax purposes.

Some additional tips for success:

1. Consider hiring a local property manager if you don't live nearby to handle turnovers, cleanings, and guest issues.
2. Maintain adequate insurance coverage for your rental property and business.
3. Provide thoughtful amenities like local treats, toiletries, or beach gear to enhance the guest experience and earn positive reviews.
4. Be a good neighbor by setting clear house rules around noise, parking, and trash. Communicate with your neighbors and address any concerns promptly.

Starting a short-term rental business in Nassau County requires diligent research and compliance to avoid costly fines and penalties. But with proper planning and management, it can be a rewarding venture in a desirable vacation destination.

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

If you have questions about short-term rental regulations or zoning in Nassau County, there are several key contacts and departments you can reach out to:

Nassau County Department of Public Works (DPW) - Contact DPW regarding construction on or near county roads, sewer use, road opening permits, and to facilitate the building permit process on county roads.

1. Phone: (516) 571-6900
2. Address: 1194 Prospect Ave, Westbury, NY 11590

Nassau County Economic Development Office - This office, along with the Planning Commission, regulates and administers zoning and planning in the county.

Phone: (516) 571-0390

Nassau County Planning Commission - The Planning Commission approves subdivision of land in unincorporated areas and offers zoning recommendations to municipalities. Contact them with questions on meeting schedules and agendas.

• Phone: (516) 571-9600
• Fax: (516) 571-9450
• Address: 1550 Franklin Avenue (Main Floor), Mineola, NY 11501
• Email: jperrakis@nassaucountyny.gov (for major subdivision referrals), twren@nassaucountyny.gov (for minor subdivision referrals), mkatz@nassaucountyny.gov (for zoning referrals)

Local Town/Village Building Departments - Many of the specific short-term rental rules are determined at the town and village level in Nassau County. Reach out to your local building department for information on permits and enforcement. Contact information for some major towns:

• Town of Hempstead Building Department: (516) 538-8500
• Town of North Hempstead Building Department: (516) 869-6311
• Town of Oyster Bay Department of Planning and Development: (516) 624-6200

In addition to government contacts, connecting with other local hosts through online forums and communities can provide helpful guidance:

• Airbnb Community Center Long Island Club - Join this club to connect with other Airbnb hosts in the Long Island/Nassau County area to share tips and experiences.
• BiggerPockets Forums - The BiggerPockets Real Estate Investing Forums have many discussions on short-term rental regulations across different markets, including Nassau County.
• Airhostsforum.com - This forum is dedicated to connecting Airbnb hosts with each other. You can find local Nassau County hosts here looking to network.

Before contacting any officials, it's a good idea to review your town and county codes and ordinances relating to short-term rentals and zoning. But don't hesitate to reach out to the relevant departments for clarification or with any concerns. Connecting with the local host community through forums can also provide valuable insights into navigating the regulatory landscape.

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

Based on discussions in online forums, many Airbnb hosts in Nassau County are frustrated with the strict and sometimes inconsistent short-term rental regulations across different towns. Here are some insights from local hosts:

Reddit - r/airbnb_hosts

In a thread titled "New Short-Term restrictions in New York. How are you hosts navigating these new laws??", a Nassau County host shared their experience:

"A few weeks after [a false fire alarm], we were given a $500 citation by our town for hosting a 'transient rental property'… We were told to seize operations immediately or be faced with fines (up to $10k) and/or possible jail time… All of this just for renting out a few rooms in our home?? New York has been treating Airbnb hosts and some landlords as criminals lately. It's a bit extreme in my opinion."

The host felt the crackdown was unfair, as their Airbnb was operating peacefully without neighbor complaints before the town intervened. They were forced to switch to a long-term tenant.

Reddit - r/AirBnB

In the "NY Local Law 18 (Banning Short term Rentals)" thread, hosts discussed a new law banning unregistered short-term rentals in New York City. One host with a 3-family home said:

"I saw great profits until now. The new rule will fine you 1-5k if you are not registered with the OSE, and it finally forces you to host only the rooms in the unit where you reside... The only people I see getting around the legislation are single/two family home owners that can rent out rooms. The city won't be checking if host is in the apartment lol."

This host believes multi-unit buildings will no longer be viable for short-term rentals under the new law, while single-family homes may still be able to operate by renting individual rooms.

BiggerPockets Forum

A post titled "Airbnb on Long Island, NY" had a prospective host asking if anyone would recommend Airbnb over long-term tenants in Suffolk County. However, no replies provided specific regulatory insights.

Overall, Nassau County hosts express frustration with what they perceive as overly restrictive and inconsistently enforced short-term rental regulations. Fines can be steep for unpermitted rentals, causing some to reluctantly transition to long-term tenants. The patchwork of different town-level ordinances also creates confusion. Some feel the laws unfairly infringe on property rights, while others are seeking loopholes like limiting rentals to individual rooms in owner-occupied single-family homes.

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.