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

Starting a Short-Term Rental Business in Riverhead

The Town of Riverhead, New York, has specific regulations regarding short-term rentals, such as those listed on platforms like Airbnb and VRBO. According to the Riverhead Town Code, a short-term rental is defined as a rental period of 29 days or less.

In 2013, Riverhead enacted a ban on residential rentals of fewer than 30 days in response to complaints from neighbors about quality-of-life issues related to short-term rentals. This law has faced opposition from some property owners who argue that short-term rentals are a long-standing tradition in the area and benefit the local economy. However, town officials have stood firm on enforcing the 29-day minimum rental period.

To legally operate a short-term rental in Riverhead, property owners must obtain a rental permit from the town. The permit application process requires a home inspection of the rental unit by a town code enforcement official or a licensed professional such as an engineer, architect, or home inspector to ensure compliance with housing, sanitary, building, electrical, and fire codes.

Rental permits in Riverhead are valid for one year. Failure to renew a permit within 30 days of expiration is an offense punishable by a fine. Fines for violating the rental permit requirement range from $500-$1500 for a first offense up to $2500-$6000 for a third offense within 7 years.

There are some exceptions to Riverhead's short-term rental rules. Rentals in the popular summer destination of Fire Island are exempt from the 29-day minimum, likely due to the long history of weekly rentals in that community. Agricultural worker housing is also exempt from rental permit requirements.

Overall, Riverhead's short-term rental regulations prioritize maintaining the character of residential neighborhoods and preventing issues that can arise from the high turnover of short-stay guests. While this has frustrated some property owners looking to capitalize on the Airbnb boom, the town has not backed down from its 29-day minimum policy. Anyone looking to start a short-term rental business in Riverhead needs to carefully review the permit requirements and be prepared for the town's strict enforcement.

Short-Term Rental Licensing Requirement in Riverhead

To legally launch and operate a short-term rental property in Riverhead, owners must obtain a rental permit from the town. The permit application process involves submitting a completed application form along with the required fee to the Riverhead Building Department.

As part of the application, the rental unit must pass an inspection by either a town code enforcement officer or a licensed professional such as an engineer, architect, or home inspector. The purpose of the inspection is to verify that the property is in compliance with all applicable housing, sanitary, building, electrical, and fire codes. Common requirements include having working smoke and carbon monoxide detectors, proper egress windows or doors in bedrooms, and handrails on stairs.

Once issued, a rental permit in Riverhead is valid for one year. Property owners must renew their permits annually to continue legally renting their units on a short-term basis. There is a 30-day grace period after the permit expiration date to renew without penalty. After that, failure to renew is considered an offense subject to fines.

The penalties for renting without a valid permit in Riverhead can be steep. First offenses carry a fine ranging from $500 to $1500. Subsequent offenses within a seven-year period result in escalating fines, with a third offense costing between $2500 and $6000.

It's important to note that the rental permit requirement applies to all short-term rentals in Riverhead, regardless of whether they are advertised on short-term rental platforms like Airbnb and VRBO or rented through other means. The only exceptions are for properties on Fire Island, which have a long history of weekly summer rentals and agricultural worker housing.

Obtaining and maintaining a valid rental permit is a crucial step for anyone looking to start a short-term rental business in Riverhead. While the process does involve some time and expense, operating without a permit is a serious offense that can result in significant fines. Prospective short-term rental operators should budget for the annual permit fee and inspection costs as part of their business plan.

Required Documents for Riverhead Short-Term Rentals

To obtain a short-term rental permit in Riverhead, property owners must submit several required documents as part of their application. The most important of these is the rental permit application form itself, which can be obtained from the Riverhead Building Department. This form requires detailed information about the property, including the address, owner contact information, number of units, and maximum occupancy.

In addition to the application form, owners must provide a floor plan or scale drawing of the rental unit. For single-family homes, a survey or site plan of the property is also required. These documents help the town verify that the unit meets all applicable building, safety, and occupancy codes.

Proof of homeowner's liability insurance is another key requirement. Acceptable forms of proof include a letter from the insurance company certifying coverage dates, a full copy of the insurance policy, or a declaration page showing the property address, owner, coverage limits, and dates. The town wants to ensure that short-term rental properties are properly insured in case of accidents or damages.

If the property owner lives outside of Suffolk County, they must designate a local contact person or property manager who can accept service of process within the county. This ensures the town can reach a responsible party quickly if any issues arise with the rental property.

Finally, all owners and tenants named on the application must sign an affidavit confirming they have received and will abide by all relevant town laws and ordinances. These cover important topics like noise restrictions, parking rules, and garbage disposal that help maintain the quality of life for neighbors.

Gathering and submitting this detailed documentation is a critical step in Riverhead's short-term rental permit process. The town uses this information to promote the safety of rental properties and preserve the character of residential neighborhoods. Property owners should allow ample time to assemble a complete application package before their desired rental start date.

Riverhead Short-Term Rental Taxes

In addition to obtaining a rental permit, short-term rental operators in Riverhead must collect and remit applicable taxes. As of June 1, 2023, Suffolk County implemented a 5.5% short-term rental tax on all rentals less than 30 days. This tax applies countywide, including in the Town of Riverhead.

To comply with the tax requirements, hosts must register with the Suffolk County Comptroller's office. They will receive a certificate of authority that must be displayed in the rental unit. Taxes are due quarterly, and late payments incur a 10% penalty plus 1% interest per month.

The new tax caught many Riverhead hosts by surprise, as there was little publicity about its implementation. Some hosts have struggled to get clear guidance from the county on the registration and filing process. Many are working to get their properties registered and remit back taxes to get into compliance and avoid fines.

The short-term rental tax provides a new revenue stream for Suffolk County, with the funds earmarked for general county programs and services. However, the additional administrative requirements and cost have added another layer of complexity for Riverhead short-term rental operators already navigating the town's strict rental permit process.

New York Wide Short-Term Rental Rules

New York State has some of the most stringent short-term rental regulations in the country, particularly in New York City. While rules vary somewhat by municipality, there are a few key statewide restrictions to be aware of:

• Rentals in buildings with three or more units are prohibited for stays less than 30 days unless the host is present in the unit during the rental period. This effectively bans many unhosted short-term rentals in apartment buildings.
• Advertising a short-term rental that would violate the above rule is illegal and subject to fines of $1000-$7500 per violation. This has caused Airbnb and other platforms to remove thousands of NYC listings in recent years.
• As of September 2023, all NYC hosts must register their short-term rentals with the city in order to operate legally. Fines for unregistered rentals start at $1000 and escalate for repeat offenses.
• Many municipalities and counties have implemented their own zoning rules, permits, and taxes for short-term rentals. It's critical for hosts to research and comply with all local requirements.
• There are some exceptions to these rules, such as hosted rentals where the host remains on-site, and rentals in certified hotels/B&Bs.

New York's strict approach to regulating short-term rentals aims to protect the housing stock for permanent residents and crack down on illegal hotel operations. However, the patchwork of state and local rules has created a complex compliance environment for hosts.

Statewide, there is an ongoing debate around how to balance the benefits of short-term rentals for hosts and guests with the need for oversight and community impact management. As local governments continue to grapple with this issue, hosts can expect regulations to remain fluid in the coming years. Staying informed of evolving requirements at both the state and municipal level is essential for anyone operating a short-term rental in New York.

Does Riverhead Strictly Enforce STR Rules?

Based on discussions in online forums like Bigger Pockets and Reddit, it appears that the Town of Riverhead does strictly enforce its short-term rental regulations. Several users noted that Riverhead has been cracking down on illegal short-term rentals in recent years.

One Bigger Pockets user shared that Riverhead enacted a ban on residential rentals under 30 days back in 2013 in response to quality-of-life complaints from neighbors. Despite some opposition from property owners, the town has stood firm on the 29-day minimum rental period. Fines for violating the law can range from $500 for a first offense up to $6000 for repeat violations.

Reddit commenters also indicated that Riverhead is not particularly Airbnb-friendly compared to some other towns. The consensus is that the town prioritizes preserving the character of residential neighborhoods over accommodating short-term rentals. One person mentioned that a neighbor has been operating an Airbnb that causes issues with parties and blocked driveways but did not think the rental had proper permits from the town.

While there are likely some hosts operating under the radar, the steep fines and active enforcement by Riverhead make it a risky proposition. The town requires a rental permit for any rental, with specific restrictions on short-term stays. Based on the online discussion, Riverhead does not have a reputation as a haven for short-term rentals like Airbnbs. Hosts should carefully weigh the potential consequences before attempting to skirt the town's rules.

How to Start a Short-Term Rental Business in Riverhead

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

1. Carefully review Riverhead's short-term rental regulations, which prohibit rentals under 29 days in most circumstances. Consult with the town if you believe your property may qualify for an exception, such as for stays on Fire Island.
2. If your rental model complies with the town code, apply for a rental permit from the Riverhead Building Department. The application requires a safety inspection of the property by a town code officer or licensed third-party inspector. Permit fees apply, and permits must be renewed annually.
3. Ensure your property is in full compliance with all applicable building, fire, safety, and health codes before scheduling the rental permit inspection. Make any necessary repairs or upgrades.
4. Determine your target guest demographic and use that to guide how you will market, furnish, and equip the rental property. Consider the needs and expectations of your ideal guests.
5. Invest in appropriate insurance coverage for your rental business. A typical homeowners policy may not cover commercial rental activity. Consult with an insurance broker on your options.
6. Decide which booking platforms you will use to list and market your rental. Popular options include Airbnb and VRBO. Familiarize yourself with each platform's fee structures and policies.
7. Establish a system for booking management, cleaning, maintenance, and guest communication. You may opt to handle these tasks yourself or outsource to a service provider.
8. Register with the Suffolk County Comptroller to collect and remit the required 5.5% short-term rental tax on a quarterly basis. Display your certificate of authority in the rental unit.
9. Create a detailed rental agreement that complies with New York landlord-tenant law. Consider having an attorney review the agreement.
10. Develop a set of house rules and ensure guests review and agree to them prior to their stay. Communicate firmly but professionally to set expectations.

By carefully adhering to Riverhead's short-term rental regulations from the outset, you can successfully operate a vacation rental business.

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

For questions about short-term rental regulations and zoning in Riverhead, the best point of contact is the Riverhead Building Department. They handle all rental permit applications and can provide guidance on the town's requirements.

Contact information for the Riverhead Building Department:

Riverhead Building Department
201 Howell Avenue
Riverhead, NY 11901
Phone: (631) 727-3200 ext. 213
Email: building@townofriverheadny.gov

The Riverhead Planning Department is another helpful resource for zoning and land use questions that may impact short-term rentals. They can assist with understanding allowed uses in different zoning districts.

Contact information for the Riverhead Planning Department:

Riverhead Planning Department
201 Howell Avenue
Riverhead, NY 11901
Phone: (631) 727-3200 ext. 239
Email: planning@townofriverheadny.gov

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

On Reddit and Bigger Pockets forums, Airbnb hosts in Riverhead express frustration with the town's strict short-term rental regulations. Many feel the 29-day minimum rental period is overly restrictive and cuts them out of the lucrative summer vacation market.

One Reddit user shared their experience trying to navigate Riverhead's rental permit process, calling it "extremely prohibitive" due to the inspections and fees required. They mentioned the town seems to discourage short-term rentals in favor of preserving housing for permanent residents.

Another host on Bigger Pockets said they operate "under the radar" in Riverhead because getting a proper permit is too onerous. However, they acknowledged this approach carries risks, as the town is known to crack down on illegal rentals with steep fines.

Some hosts proposed workarounds like listing their property as a "bed and breakfast" on Airbnb, since B&Bs can rent for under 30 days. Others said they pivoted to 2-3 month seasonal rentals to avoid the short-term restrictions.

Overall, the sentiment among Riverhead hosts is that the town's regulations are a major impediment to running a successful Airbnb. Many seem to begrudgingly comply, while others skirt the rules despite the potential consequences. There appears to be limited avenues for hosts to work with the town on more permissive policies.

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.