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

Starting a Short-Term Rental Business in Poughkeepsie

The Town of Poughkeepsie adopted new regulations for short-term rentals like Airbnb and VRBO in 2023. These regulations are found in Chapter 168A and Section 150.1 of the town code. The Town Board determined it was in the best interest of the town and its residents to regulate short-term rentals.

In the City of Poughkeepsie, short-term rentals are regulated under the New York State Multiple Dwelling Law, which requires hosts to register their property and obtain a permit. The city held a public hearing on proposed short-term rental legislation in May 2023.

As of August 2019, there were 947 short-term rental units across Dutchess County, with the number per municipality ranging from 2 to 151. Every municipality has STRs. Between 2017-2018, there was a 31% increase in the number of STR listings in the county.

Some key provisions in Poughkeepsie's short-term rental regulations include:

• Requiring a permit for unhosted short-term rentals, such as this one at 42 Shamrock Circle that was approved by the Town Board in June 2024
• Limiting the number of rental nights per year, which can be challenging to enforce across multiple online booking platforms
• Addressing issues like noise, disorderly conduct, property maintenance, illegal parking, and unfair competition with traditional B&Bs and hotels

According to a county survey, 53% of municipalities see opportunities with STRs, while 79% have concerns. The main complaints relate to noise, property issues, and illegal parking, especially with unhosted rentals. 43% of communities don't feel equipped to adequately enforce STR regulations.

Real estate investors on forums like BiggerPockets are interested in the Poughkeepsie rental market, especially 3-4 unit properties. On Reddit, some recommend the south side of Poughkeepsie as a good place to buy, with more affordable prices compared to suburbs like Arlington. However, the city schools are a consideration for families with kids.

The key takeaways are:

1. Short-term rentals are regulated in both the Town and City of Poughkeepsie
2. A permit is required, especially for unhosted rentals
3. Common issues include noise, parking, property maintenance, and competition with hotels
4. Enforcement of regulations like night limits can be challenging
5. The rental market is active, but schools are a consideration in some areas

With the proper permits and by following the local regulations, starting a short-term rental business is very viable in Poughkeepsie. The demand is strong, and opportunities exist, as long as potential issues are managed proactively. Prospective hosts should carefully review the applicable town/city ordinances and engage with local officials as needed.

Short-Term Rental Licensing Requirement in City of Poughkeepsie

In the City of Poughkeepsie, short-term rentals (less than 30 days) are regulated under the New York State Multiple Dwelling Law. This law requires hosts to register their property and obtain a permit from the Building Department.

Based on the City of Poughkeepsie's official website, the specific requirements for a short-term rental permit include:

1. Completed Building Permit Application
2. Proof of ownership (deed)
3. Floor plans drawn to scale showing room sizes, entrances/exits, smoke/carbon monoxide detectors
4. Parking plan
5. Dutchess County Department of Health approval for well water/septic (if applicable)
6. Workman's Compensation and Disability Insurance for contractors
7. Application fee based on estimated cost of work

These documents must be submitted to the Building Department at Poughkeepsie City Hall, 62 Civic Center Plaza, Poughkeepsie, NY 12601. The department is open Monday-Friday 8:30am-4:00pm.

Permit fees are based on the estimated cost of work:

1. $1 to $1,000: $75
2. $1,000 to $5,000: $100
3. $5,000 to $20,000: $150
4. Over $20,000: $12 per $1,000

The typical timeframe for permit approval is 5-10 business days, assuming the application is complete and no additional information is required.

Fines for operating a short-term rental without the proper permit start at $1,000 for the first offense, $1,500 for the second offense, and $2,500 for the third and subsequent offenses. Each day the violation continues constitutes a separate offense subject to additional fines.

The city held a public hearing on May 15, 2023, to discuss proposed legislation that would further regulate short-term rentals. This demonstrates that the rules are evolving as the city tries to balance the benefits and challenges of the growing short-term rental industry. Hosts should stay informed of any updates to the city code.

Required Documents for City of Poughkeepsie Short-Term Rentals

Based on the City of Poughkeepsie's official website, the following documents are required to obtain a short-term rental permit from the Building Department:

Completed Building Permit Application: This form provides key details about the property owner, location, and scope of work. It is the main application form that must be submitted to the Building Department.

Proof of Ownership (Deed): A copy of the property deed is required to verify ownership and ensure the applicant has the legal right to use the property as a short-term rental. The deed can be obtained from the Dutchess County Clerk's office.

Floor Plans: Detailed floor plans drawn to scale must be submitted, showing room sizes, entrances/exits, and locations of smoke and carbon monoxide detectors. These are reviewed to ensure the space meets safety requirements. Plans can be prepared by the owner or a professional.

Parking Plan: A site plan or diagram showing the number and location of available off-street parking spaces is required. This helps verify adequate parking is provided to avoid issues with street congestion.

Health Department Approval: For properties with a private well or septic system, approval from the Dutchess County Department of Health must be obtained to verify the water and wastewater systems are adequate and safe.

Workman's Compensation and Disability Insurance: If contractors are performing any of the work, proof of insurance coverage must be provided to protect their employees. Forms can be obtained from the contractor's insurance carrier.

Application Fee: A non-refundable permit fee based on the estimated cost of work must be paid when submitting the application. The fee schedule is available on the city website.

These documents must be compiled and submitted as a complete package to the Building Department at Poughkeepsie City Hall for review and approval before using the property as a short-term rental. The review process typically takes 5-10 business days.

City of Poughkeepsie Short-Term Rental Taxes

Short-term rental operators in the City of Poughkeepsie are required to collect and remit several types of taxes. The main taxes that apply are the hotel occupancy tax and sales tax.

Hotel Occupancy Tax

The hotel occupancy tax is a 4% tax on the listing price, including any cleaning fees, for reservations 29 nights or shorter. This tax is paid by the guest as part of their reservation and must be remitted to Dutchess County.

As of March 1, 2017, Airbnb began collecting and remitting the occupancy tax on behalf of hosts for bookings made through their platform. However, hosts are still responsible for collecting and remitting the tax for rentals booked through other methods.

In August 2023, Governor Hochul signed legislation authorizing the City of Poughkeepsie to collect an additional hotel occupancy tax of up to 5%. This new tax would also apply to short-term rentals and Airbnbs. Once implemented by the city, the total hotel occupancy tax could be as high as 9%.

Sales Tax

Short-term rentals are also subject to New York State sales tax, which is currently 8.125% in Dutchess County. This includes the 4% state sales tax and 4.125% Dutchess County sales tax. The sales tax applies to the total charge for occupancy, including any cleaning fees.

Like the hotel occupancy tax, Airbnb collects and remits the sales tax for bookings made through their site on behalf of hosts. For other bookings, it is the host's responsibility to collect and remit the appropriate sales tax.

Potential Deductions

Short-term rental operators may be able to deduct certain expenses to reduce their taxable income. Some common deductible expenses include:

1. Mortgage interest
2. Property taxes
3. Utilities
4. Insurance
5. Cleaning and maintenance costs
6. Supplies
7. Platform service fees (e.g. Airbnb fees)
8. Depreciation of furniture and equipment

It's important to keep accurate records and consult with a tax professional to ensure you are properly tracking income and expenses and taking all allowable deductions.

In summary, the main taxes for short-term rentals in the City of Poughkeepsie are the 4% Dutchess County hotel occupancy tax and 8.125% sales tax, which may increase with a new city occupancy tax. Hosts using Airbnb will have these taxes collected and remitted for them, but are responsible for bookings from other sources. Proper expense tracking can help reduce taxable income.

New York Wide Short-Term Rental Rules

In addition to local regulations in Poughkeepsie, short-term rental hosts must also comply with state-wide rules in New York. Some key state laws and regulations include:

New York State Multiple Dwelling Law

This law prohibits renting out apartments in "Class A" multiple dwellings (buildings with 3+ permanent residential units) for periods of less than 30 days, unless the permanent resident is present throughout the guest's stay. This effectively bans unhosted short-term rentals in residential apartment buildings.

Sales and Occupancy Taxes

New York State imposes a 4% sales tax and local occupancy taxes ranging from 3-6% on short-term rentals under 90 days. As of 2023, Airbnb collects and remits these taxes on behalf of hosts for bookings made through their platform. However, hosts are responsible for collecting and remitting taxes for reservations booked outside of Airbnb.

Short-Term Rental Registration Bill

In June 2024, the state legislature passed a bill requiring all short-term rentals to register with the Department of State every two years. If signed into law by the governor, this would create a state-wide registry to help regulate the industry. The bill also allows municipalities to collect sales and occupancy taxes on short-term rentals.

Safety Requirements

The state requires short-term rentals to meet certain safety standards, such as having working smoke and carbon monoxide detectors, fire extinguishers, and clear fire evacuation routes. Rentals must be kept in safe and code-compliant condition.

Tenant Protections

Under state law, tenants cannot be evicted for the purpose of converting an apartment into a short-term rental. Leases may also prohibit tenants from subletting their apartment as a short-term rental.

Poughkeepsie hosts should carefully review both state and local laws to ensure they are in full compliance before listing their property as a short-term rental. With proper registration, tax collection, and adherence to safety and zoning rules, short-term rentals can be operated legally. However, new legislation may further restrict the industry in an attempt to combat the housing crisis in many New York communities.

Does the City of Poughkeepsie Strictly Enforce STR Rules?

The City of Poughkeepsie has taken steps to regulate short-term rentals, but enforcement appears to be somewhat lax compared to other Hudson Valley cities. While the city requires hosts to register their property and obtain a permit under the New York State Multiple Dwelling Law, there are still many active listings on platforms like Airbnb.

According to discussions on real estate investing forums like BiggerPockets, the City of Poughkeepsie is considered more Airbnb-friendly than some neighboring towns that have implemented stricter regulations and caps on short-term rentals. Hosts report being able to operate without significant interference from the city, as long as they make an effort to comply with the basic registration and permit requirements.

On the Airbnb subreddit, hosts share experiences indicating that the City of Poughkeepsie does not proactively seek out and shut down short-term rentals that are operating without a permit. Enforcement seems to be largely complaint-driven, meaning the city will investigate properties if they receive specific complaints from neighbors about noise, parking, or other nuisance issues.

This relatively hands-off approach has allowed the short-term rental market to grow in the City of Poughkeepsie. Despite the rules, many hosts continue to list and rent out properties on a short-term basis. The demand for Airbnb accommodations in the city remains strong, especially during peak summer and fall tourism seasons.

However, the lack of strict enforcement does not mean the city is entirely turning a blind eye to the short-term rental industry. The City of Poughkeepsie is actively considering additional regulations, as evidenced by a public hearing held in May 2023 to discuss proposed legislation that would further restrict short-term rentals.

In summary, while the City of Poughkeepsie has short-term rental regulations on the books, enforcement is not as strict as some other Hudson Valley municipalities. The city is generally seen as more Airbnb-friendly, and many hosts continue to operate despite not being fully compliant with permit requirements. However, the regulatory landscape is evolving, and the city may adopt tighter restrictions in the near future as the impacts of the growing short-term rental industry become more apparent.

How to Start a Short-Term Rental Business in City of Poughkeepsie

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

Determine Eligibility: Verify that your property is eligible for use as a short-term rental under the city's zoning laws. Short-term rentals are regulated under the New York State Multiple Dwelling Law and require a permit from the Building Department. The property must be your primary residence, unless you obtain a special permit for an unhosted rental. Review the city's zoning map and consult with the Building Department to confirm your property's eligibility before proceeding.

Obtain Necessary Permits: Apply for a short-term rental permit from the Building Department. The application requires proof of ownership, detailed floor plans, a parking plan, and application fees. If you have a private well or septic system, you'll also need Dutchess County Department of Health approval. Start the permit process early, as it can take several weeks. Engage with the Building Department to ensure your application is complete and to address any issues promptly.

Prepare the Space: Ensure your rental meets all safety requirements, including smoke and carbon monoxide detectors, fire extinguishers, and clear emergency exits. Make any necessary repairs or upgrades to meet building codes. Create a welcoming space with clean, comfortable furnishings and amenities. Put yourself in your guests' shoes. Provide items that will make their stay more enjoyable, like fresh linens, toiletries, kitchen essentials, and local guides.

Set Up Business Operations: Register your business with the state and obtain an Employer Identification Number (EIN) from the IRS. Open a separate business bank account to manage your rental income and expenses. Consider forming an LLC to protect your personal assets. Use accounting software to track your income and expenses from day one. This will make tax filing much easier and help you monitor your business's financial health.

Create a Listing: Once you have your permit, create a listing on popular short-term rental platforms like Airbnb and VRBO. Take high-quality photos that showcase your space's best features. Write a detailed description that highlights your rental's unique amenities and location. Be responsive to inquiries and guest communications. Prompt, friendly service can help you earn positive reviews and repeat business.

Manage Your Rental: Establish clear check-in and check-out procedures for guests. Arrange for regular cleaning and maintenance between stays. Be available to address any guest concerns or issues that arise during their stay. Consider hiring a professional property management company if you don't live nearby or don't have time to manage the rental yourself. They can handle tasks like cleaning, maintenance, and guest communication.

Comply with Ongoing Regulations: Collect and remit the required occupancy and sales taxes. Renew your short-term rental permit annually. Keep your property in safe, code-compliant condition and address any violations promptly. Stay informed about changes to local short-term rental laws. The regulations are evolving as the city tries to balance the benefits and challenges of the growing industry.

Starting a short-term rental business in the City of Poughkeepsie can be rewarding, but it requires diligent compliance with local regulations. By obtaining the proper permits, preparing a safe and inviting space, and providing excellent guest service, you can build a successful rental business in this historic Hudson Valley city.

Who to Contact in the City of Poughkeepsie about Short-Term Rental Regulations and Zoning?

For questions about short-term rental regulations and permits in the City of Poughkeepsie, contact the Building Department:

City of Poughkeepsie Building Department

1. 62 Civic Center Plaza, 2nd FloorPoughkeepsie, NY 12601
2. Phone: (845) 451-4007
3. Hours: Monday-Friday 8:30am-4:00pm

The Building Department handles applications and inspections for short-term rental permits under the New York State Multiple Dwelling Law.

For zoning questions, contact the Planning & Zoning Division:

City of Poughkeepsie Planning & Zoning Division

1. 62 Civic Center Plaza, 2nd Floor
2. Poughkeepsie, NY 12601
3. Phone: (845) 451-4047
4. Email: Joseph Donat, Interim Development Director - jdonat@cityofpoughkeepsie.com

The Planning & Zoning Division can provide information on where short-term rentals are allowed under the city's zoning code and any special approvals required.

In the neighboring Town of Poughkeepsie, contact the Zoning Department for questions about their short-term rental ordinance:

Town of Poughkeepsie Zoning Department

1. 1 Overocker Road
2. Poughkeepsie, NY 12603
3. Phone: (845) 485-3650
4. Email: Kristina Granieri, Zoning Administrator - kgranieri@townofpoughkeepsie-ny.gov

Local groups and online communities that Poughkeepsie hosts may find useful include:

1. Hudson Valley Airbnb Hosts Facebook Group: https://www.facebook.com/groups/1124119531102386/
2. Dutchess County Regional Chamber of Commerce: https://dcrcoc.org/
3. Poughkeepsie Subreddit: https://www.reddit.com/r/poughkeepsie/
4. BiggerPockets Hudson Valley Real Estate Investing Forum: https://www.biggerpockets.com/forums/521-hudson-valley-real-estate-investing

These resources can provide opportunities to network with other local hosts, stay informed about regulatory changes, and get advice on running a successful short-term rental business in the Poughkeepsie area. Building relationships with city officials and engaging with the local host community are important steps to navigating the evolving short-term rental landscape.

What Do Airbnb Hosts in City of Poughkeepsie on Reddit and Bigger Pockets Think about Local Regulations?

Airbnb hosts in the City of Poughkeepsie have shared their experiences and thoughts about local short-term rental regulations on forums like Reddit and BiggerPockets. Here are some key insights from these discussions:

On the Poughkeepsie subreddit, one host noted that while the city requires a permit for short-term rentals, enforcement seems to be complaint-driven. They wrote, "I've been operating my Airbnb for over a year without any issues. The city only seems to investigate if a neighbor complains about noise or parking". This suggests that some hosts are able to fly under the radar if they maintain a low profile and avoid disruptive guests.

However, another Redditor cautioned that the lack of enforcement may not last forever, saying "The city is definitely starting to pay more attention to short-term rentals. They held a public hearing last year on new regulations. I wouldn't count on the lax enforcement continuing". This highlights the evolving nature of short-term rental regulations in the city.

On BiggerPockets, a real estate investor shared their experience getting a short-term rental permit in the City of Poughkeepsie. They wrote, "The process was fairly straightforward but time-consuming. It took about 6 weeks from submitting my application to getting the permit. Definitely start early if you're considering a short-term rental". This emphasizes the importance of planning ahead and allowing ample time for the permitting process.

Another BiggerPockets user noted that the City of Poughkeepsie seems to be more open to short-term rentals than some other Hudson Valley towns. They commented, "Poughkeepsie is definitely more Airbnb-friendly than places like Beacon or Rhinebeck that have really cracked down on short-term rentals. But I still think more regulation is coming". This suggests that while Poughkeepsie may be a relatively easier market for short-term rentals, the regulatory landscape is still shifting.

On the Hudson Valley subreddit, a host lamented the impact of increased competition and regulation on their bookings. They wrote, "I've noticed a big decrease in bookings for my Poughkeepsie Airbnb. Not sure if it's just more competition or the new rules the city is talking about". This points to the challenges hosts face in a dynamic market with growing supply and evolving regulations.

Overall, the experiences shared by Airbnb hosts in the City of Poughkeepsie on Reddit and BiggerPockets paint a picture of a market where short-term rentals are currently feasible but facing increasing regulatory scrutiny. While enforcement of existing rules seems to be somewhat lax, hosts are aware that the city is considering tighter restrictions that could impact their businesses in the future. Successful hosts will need to stay informed, comply with permitting requirements, and adapt to any new regulations that may come into effect.

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.