Niagara Falls Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Niagara Falls

If you're considering starting a short-term rental business in Niagara Falls using platforms like Airbnb or VRBO, it's important to understand the local rules and regulations. In December 2019, the Niagara Falls City Council passed an ordinance legalizing and regulating short-term rentals in the city.

Under the ordinance, property owners must obtain a permit from the city's Department of Code Enforcement in order to operate a short-term rental. The permit application requires:

• Proof of ownership
• Proof of primary residence (if applicable)
• Floor plan of the rental unit
• Parking plan
• Proof of insurance
• Payment of a $250 application fee

Permits must be renewed annually and are non-transferable. The city has set a cap of 200 total short-term rental permits, with a maximum of 50 in any single neighborhood.

There are two types of short-term rental permits in Niagara Falls:

1. Owner-Occupied: For properties where the owner lives on-site and rents out a portion of their home. These permits are limited to 150.
2. Non-Owner Occupied: For whole-home rentals where the owner does not live on the property. These permits are limited to 50.

The ordinance also includes several operational requirements for short-term rentals, such as:

1. Occupancy limits based on the number of bedrooms
2. Parking requirements (1 space per bedroom)
3. Trash management rules
4. Noise and nuisance provisions
5. Fire safety standards

Hosts are responsible for collecting and remitting the Niagara County bed tax of 4% on all short-term rental stays. They must also maintain a local contact person who can respond to any issues within 30 minutes.

Violations of the ordinance can result in fines ranging from $250-$1000 per day and potential revocation of the short-term rental permit.

The passage of the short-term rental ordinance came after several years of debate in Niagara Falls. Some residents and city officials raised concerns about the impact of unregulated rentals on neighborhood character, housing availability, and quality of life.

However, many hosts and advocates argued that short-term rentals provide important income for local property owners and support the tourism economy. The ordinance seeks to strike a balance by allowing short-term rentals to operate legally while putting in place guidelines to address community concerns.

If you're interested in starting an Airbnb in Niagara Falls, carefully review the full text of the short-term rental ordinance. Reach out to the Department of Code Enforcement with any questions about the permitting process and requirements. Joining local host groups can also provide valuable guidance and support in navigating the regulations.

With its proximity to the iconic Niagara Falls State Park and other attractions, the city has strong potential for vacation rental businesses. By following the rules and being a responsible host, you can tap into this demand while contributing positively to the community.

Short-Term Rental Licensing Requirement in Niagara Falls

Hosts must obtain a permit from the City Clerk's office to legally operate a short-term rental in Niagara Falls, New York. The city has established two types of short-term rental permits:

1. Owner-Occupied Permit: For properties where the owner lives on-site and rents out a portion of their home. The city has set a cap of 150 owner-occupied permits.
2. Non-Owner Occupied Permit: For whole-home rentals where the owner does not live on the property. These permits are limited to 50.

To apply for a short-term rental permit, hosts must submit the following to the City Clerk's office:

1. Completed application form
2. Proof of ownership
3. Proof of primary residence (for owner-occupied permits)
4. Floor plan of the rental unit
5. Parking plan
6. Proof of insurance
7. $250 application fee

Permits must be renewed annually and are non-transferable. The renewal fee is $250 for owner-occupied permits and $400 for non-owner-occupied permits.

In addition to the permit, short-term rentals must pass a fire safety inspection conducted by the Niagara Falls Fire Department. The inspection checks for working smoke alarms, carbon monoxide detectors, fire extinguishers, and clear emergency exits. There is a separate $75 fee for the fire inspection.

Once a short-term rental has obtained a permit and passed inspection, the host will receive a registration number that must be included on all listings and advertisements. The permit must also be prominently displayed inside the rental unit.

It's important to note that short-term rental permits are limited to one- and two-family dwellings. Multi-family apartment buildings and condominiums are not eligible unless specifically approved. Mobile homes, RVs, and travel trailers are also prohibited from being used as short-term rentals.

Failure to obtain a proper permit or operating a short-term rental that does not meet all city requirements can result in fines of $250-$1000 per day and potential revocation of the permit. The city has the authority to deny or revoke permits for properties with multiple code violations or nuisance complaints.

The short-term rental permit system is part of Niagara Falls' efforts to balance the economic benefits of home-sharing with preserving neighborhood character and housing stock. By requiring permits and inspections, the city aims to ensure short-term rentals are safe and not negatively impacting quality of life for residents.

Hosts should carefully review all requirements and gather necessary documentation before applying for a short-term rental permit. Consulting with the City Clerk's office and local host groups can provide guidance on navigating the licensing process.

Required Documents for Niagara Falls Short-Term Rentals

Hosts must submit several key documents to the Department of Code Enforcement to apply for a short-term rental permit in Niagara Falls, New York. These documents ensure the property meets all necessary safety standards and requirements.

One of the most important documents is confirmation from the Fire Chief dated within the previous 60 days, stating that the premises comply with the Fire Protection Act and Niagara Falls Fire Department policies for short-term rentals. This may require a fire safety inspection to verify working smoke alarms, fire extinguishers, and clear emergency exits.

A certificate from the Medical Officer of Health is needed if the short-term rental is on a private water supply or sewage disposal system. This must be dated within 60 days and state that the premises has adequate services for use as a short-term rental. Note that the Medical Officer of Health no longer inspects private sewage systems - this is now done by Private Sewage System Inspectors with the Niagara Region Planning and Development Services department.

Hosts must also provide a detailed site plan and floor plans outlining the portion of the property to be used as a short-term rental. These plans must demonstrate that the premises conforms with the city's zoning bylaws and provides the required minimum of two parking spaces (or as established in a site-specific zoning amendment).

Additional documents required for a short-term rental permit application in Niagara Falls include:

1. Proof of ownership (transfer/deed)
2. Copy of the host's driver's license
3. Proof of insurance with a minimum of $2,000,000 in commercial liability coverage
4. A copy of the standard rental agreement containing certain required clauses
5. Particulars about any partners if the rental is owned by a partnership
6. Certified corporate filings and authorization if the rental is owned by a corporation

The standard rental agreement for a Niagara Falls short-term rental must include a notification about the city's noise bylaws, the maximum occupancy as determined by the Chief Building Official, and a renter's code of conduct.

Gathering this extensive list of required documents is a critical step in the short-term rental permit process. The Department of Code Enforcement needs to verify that the property is safe, properly insured, and in compliance with all local regulations before granting approval to operate.

Hosts should start compiling these materials well in advance of their planned rental start date, as some documents like the fire and health inspections may take time to schedule and complete. Working closely with local officials and carefully reviewing the application checklist can help ensure a smooth permitting process.

By submitting a complete and accurate permit application with all required documents, short-term rental hosts in Niagara Falls demonstrate their commitment to operating legally and responsibly. This benefits the entire community by promoting guest safety and neighborhood quality of life.

Niagara Falls Short-Term Rental Taxes

In addition to obtaining a permit, short-term rental operators in Niagara Falls, New York, are responsible for collecting and remitting applicable taxes on their bookings. The primary tax is the Niagara County bed tax, also known as the occupancy tax or room tax.

As of 2023, the Niagara County bed tax rate is 4% of the listing price per night. For example, if a short-term rental charges $150 per night, the county bed tax would be $6 per night. This tax applies to all short-term rentals, including those listed on platforms like Airbnb and VRBO.

Hosts are required to collect the bed tax from their guests as part of the booking payment. They must then remit the taxes to the Niagara County Treasurer's Office on a quarterly basis. The deadlines for filing and payment are:

1. April 20 for the first quarter (January-March)
2. July 20 for the second quarter (April-June)
3. October 20 for the third quarter (July-September)
4. January 20 for the fourth quarter (October-December)

Failure to collect and remit the bed tax can result in penalties and interest charges. The county has the authority to audit short-term rental operators to ensure compliance with the tax requirements.

In addition to the county bed tax, short-term rentals in Niagara Falls may be subject to New York State sales tax and potentially other local taxes. The state sales tax rate is 4%, and the total combined sales tax rate in Niagara Falls is 8% when including the county and city portions.

However, the application of sales tax to short-term rentals can be complex and depends on factors like the length of stay, amenities provided, and whether the host meets certain thresholds. Hosts should consult with a tax professional to determine their specific sales tax obligations.

There has been some controversy around the taxation of short-term rentals in Niagara Falls compared to traditional lodging providers like hotels. In 2019, a proposal was introduced to apply the county bed tax to short-term rentals, which drew criticism from the Niagara Falls Tourist Home Association. They argued it would put an undue burden on small operators.

However, city officials have maintained that short-term rentals should be subject to the same taxes as hotels to create a level playing field. They note that the revenue from the bed tax helps fund tourism promotion and supports local services that benefit both residents and visitors.

As the short-term rental market continues to grow in Niagara Falls, it's likely that the tax requirements will continue to evolve. Hosts should stay informed of any changes and work closely with local tax authorities to ensure they are in full compliance. By properly collecting and remitting taxes, short-term rental operators contribute to the community's economic health and the tourism industry's sustainability.

New York Wide Short-Term Rental Rules

In addition to city-specific regulations, there are also statewide rules that govern short-term rentals across New York. These laws aim to create a consistent industry framework while allowing local municipalities to implement additional requirements as needed.

One key state law is the New York State Multiple Dwelling Law, which prohibits rentals of less than 30 days in "Class A" multiple dwellings (buildings with three or more permanent residential units) unless the permanent resident is present during the guest's stay. This effectively bans most short-term rentals in apartment buildings in New York City.

Outside of NYC, the Multiple Dwelling Law still applies to "Class A" buildings, but local zoning and ordinances may allow for some short-term rentals. Many cities and towns have adopted their own regulations, such as permit requirements, occupancy limits, and parking rules.

At the state level, ongoing efforts have been to create a statewide registry for short-term rentals. In April 2024, lawmakers proposed legislation that would require all vacation rental hosts to register their properties with the Department of State every two years and pay a small fee. Municipalities with their own registries would be exempt.

Proponents argue a statewide registry would help regulate the industry, collect data on housing stock, and ensure proper tax collection. It could also aid local enforcement by providing a registered properties database. However, the bill has faced opposition from some who feel it infringes on property rights.

Another statewide rule relates to taxes. Short-term rentals are subject to state and local sales taxes and any applicable county or city occupancy taxes. Hosts are responsible for collecting these taxes from guests and remitting them to the proper authorities. Failure to comply can result in fines and penalties.

Additionally, all short-term rentals in New York must meet basic safety standards, such as having working smoke detectors, carbon monoxide alarms, and fire extinguishers. Some municipalities may require additional safety measures, like emergency lighting or posting evacuation routes.

As the short-term rental industry continues to evolve, New York's state regulations will likely adapt. Hosts should stay informed of any changes at both the state and local level to ensure they are operating legally and responsibly. Complying with all applicable rules allows short-term rental operators to provide a valuable service to guests while being good community neighbors.

Does Niagara Falls Strictly Enforce STR Rules?

Based on discussions in real estate forums like Bigger Pockets and Reddit, it appears that Niagara Falls does intend to strictly enforce its short-term rental regulations. The city seems committed to cracking down on illegal and unlicensed vacation rentals.

In August 2022, the city provided an update on its enforcement efforts, noting that a dozen properties were facing legal action for operating without the proper permits. The city's manager of municipal enforcement services emphasized that while short-term rentals are a growing trend, Niagara Falls needs to proactively deal with the industry to protect neighborhoods and housing stock.

Compared to some other tourist destinations, Niagara Falls is taking a harder stance on short-term rental compliance. While some cities are still figuring out how to effectively regulate the booming vacation rental market, Niagara Falls has put a strict permitting system and clear consequences in place.

The general consensus among hosts on forums is that Niagara Falls is not particularly Airbnb-friendly. The high permit fees, stringent requirements, and active enforcement make it a challenging market for casual hosts. Some have complained that the rules are overly burdensome and are considering investing in nearby towns with looser regulations instead.

However, it's clear from the continued listings that some hosts are still operating short-term rentals in Niagara Falls despite the strict rules. But they do so at a much higher risk of facing fines and legal issues. The city has shown it's willing to dedicate significant resources to finding and penalizing offenders.

The bottom line is that while Niagara Falls recognizes the potential benefits of short-term rentals for tourism, the city is prioritizing the preservation of long-term housing and neighborhood character. Hosts should be prepared for the city to take enforcement seriously and carefully weigh the costs of compliance against the potential profits.

Niagara Falls serves as an example of a city taking a proactive approach to managing the short-term rental market before it gets out of control. While the stringent regulations may deter some hosts, the city appears committed to striking a balance between a healthy tourism economy and a stable housing market for residents.

How to Start a Short-Term Rental Business in Niagara Falls

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

1. Research the city's short-term rental regulations thoroughly. Carefully review the amended Codified Zoning Ordinance Chapter 1328.13 titled "Short-Term Rental Units" to understand the permit requirements, fees, and operating rules. Ensure your property is located within the designated boundary area for new short-term rentals.
2. Choose a suitable property that meets all the city's requirements. It must be a one- or two-family dwelling and pass all necessary inspections. Consider factors like proximity to tourist attractions, parking availability, and neighborhood character.
3. Apply for a Short-Term Rental Special Permit from the city's Planning Office. Provide all required documents, including proof of ownership, a list of other owned properties in Niagara Falls, a site plan, floor plans, and the $250-$400 permit fee. Attend the public hearing for your permit application.
4. Once you receive your Special Permit, apply for a Short-Term Rental License within one year. The license fee is also $250-$400 depending on the type of property. Existing permit holders must obtain a license by September 7, 2022 to continue operating.
5. Ensure your property meets all health and safety standards. This includes providing working fire extinguishers, interconnected smoke and carbon monoxide alarms, and posting fire safety notices in each bedroom. Schedule any required inspections.
6. Set up your business operations. Choose a business structure, obtain an EIN, open a business bank account, and secure appropriate insurance coverage. Consider hiring a local property manager or co-host to assist with day-to-day operations and guest communication.
7. Create a detailed listing on popular vacation rental platforms like Airbnb and VRBO. Take high-quality photos, write an enticing description, and set competitive nightly rates. Utilize the platforms' pricing tools to optimize your earnings.
8. Establish a system for collecting and remitting the required occupancy taxes. Register with the city to collect and pay the 4% Niagara Falls occupancy tax on a quarterly basis. Consult with a tax professional to ensure compliance with all applicable tax laws.
9. Implement a thorough cleaning and maintenance plan. Hire a reputable cleaning service to properly sanitize the property between guests. Conduct regular inspections and promptly address any maintenance issues that arise. Maintain detailed records of all cleaning and repairs.
10. Provide excellent customer service to your guests. Respond promptly to inquiries and booking requests, share local recommendations, and address any concerns that come up during their stay. Encourage satisfied guests to leave positive reviews to attract future bookings.

You can launch a successful and compliant vacation rental business by following these steps and staying up-to-date on Niagara Falls' evolving short-term rental regulations. While the city's rules are strict, the demand from tourists visiting the iconic Falls creates a strong opportunity for responsible short-term rental operators.

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

If you have questions or need information about short-term rental regulations and zoning in Niagara Falls, New York, there are several key contacts and resources available.

The best place to start is the Department of Code Enforcement, which is responsible for administering the short-term rental permit and licensing process. You can reach out to Director of Code Enforcement Corey Baskerville at 716-286-4492 or cbaskerville@niagarafallsny.gov. His office can provide the most up-to-date information on the requirements and how to apply for a permit.

For zoning-related questions, contact the Niagara Falls Planning Office at 716-286-4470 or planning@niagarafallsny.gov. They can help clarify the types of short-term rentals allowed in different zoning districts and any applicable restrictions.

The City Clerk's office handles the actual issuance of short-term rental permits and licenses. Contact City Clerk Lisa Vitello at 716-286-4300 or lvitello@niagarafallsny.gov with any questions about your permit's application process or status.

If you have concerns about a specific short-term rental property not complying with regulations, you can file a complaint with the Department of Code Enforcement. Call the 24/7 complaint hotline at 716-402-7806 or visit the online complaint portal at https://secure.hostcompliance.com/niagara-falls-ny/complaints/type.

For questions about occupancy tax collection and remittance, contact the Niagara County Treasurer's Office at 716-439-7018 or niagaracounty.com/Departments/Treasurer. They can provide information on the county bed tax rate, filing deadlines, and payment methods.

It's also a good idea to connect with local host groups and short-term rental alliances to stay informed and share experiences with other property owners. Search for Niagara Falls host forums on platforms like Airbnb, VRBO, and Facebook.

Finally, keep an eye on the city's website at niagarafallsusa.org for any announcements, public hearing schedules, and updates to the short-term rental ordinance. The more you can stay engaged and informed, the better positioned you will be to navigate the evolving regulatory landscape in Niagara Falls.

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

To get a sense of how short-term rental hosts in Niagara Falls feel about the local regulations, I searched through discussions on Reddit and Bigger Pockets. Here are a few relevant threads that provide insight into hosts' perspectives:

Reddit /r/niagarafallsontario - "Illegal vacation rentals 'endangering' Niagara Falls neighborhoods."

In this thread, Niagara Falls residents discuss the impact of short-term rentals on their community. Several mention issues with noise, parties, and parking from Airbnb guests. One commenter notes, "The city really needs to crack down on these illegal rentals before our neighborhoods are ruined." Others argue that responsible hosts who follow the rules shouldn't be punished for a few bad apples.

Reddit /r/airbnb_hosts - "Licensing Requirement for Airbnb in Niagra Falls ON"

Here, a prospective host asks about the permit process for short-term rentals in Niagara Falls. Responses highlight the importance of carefully reviewing the city's bylaws and obtaining the necessary approvals. One host advises, "Don't try to fly under the radar. The city is actively monitoring listings and will shut you down if you're not licensed."

Bigger Pockets Forum - "First time renting out my home in Northern VA. What to expect"

While not specific to Niagara Falls, this thread includes some general discussion on short-term rental regulations. Several hosts chime in about the need to research local zoning rules and ordinances before listing a property. One warns, "Breaking the law, even unknowingly, can result in hefty fines. It's not worth the risk."

Bigger Pockets Forum - "Can Niagara Falls recover like Buffalo, NY?"

In this thread, short-term rentals come up when comparing the revival of Buffalo and Niagara Falls. One commenter mentions the city's new "Landlord Rental & Property Owner Registration Ordinance" that aims to track and regulate non-owner occupied rentals, including Airbnbs. Another speculates that cracking down on short-term rentals could stifle tourism growth.

Overall, the sentiment among Niagara Falls hosts on these forums is mixed. Some feel the regulations are overly burdensome and could deter people from visiting or investing in the city. They worry the rules will drive short-term rental activity underground.

However, others recognize the need for some oversight to preserve neighborhood character and quality of life for residents. They see the permit process as a way to weed out "party houses" and ensure a level playing field for all accommodation providers.

The common theme is that hosts must do their due diligence and comply with all local regulations if they want to operate legally and successfully. While opinions differ on whether Niagara Falls has found the right balance with its short-term rental bylaws, it's clear the city is taking an active approach to managing the industry's growth.

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.