Saratoga Springs Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Saratoga Springs

If you're considering starting a short-term rental business in Saratoga Springs using platforms like Airbnb or VRBO, it's important to be aware of the local rules and regulations. According to city law, short-term rentals under 28 days are not allowed in Saratoga Springs.

Accounts Commissioner Dillon Moran has proposed new legislation that would legalize and regulate short-term rentals in the city for the first time. Under the proposed rules, property owners would need to register their short-term rental with the city and pay a $1,000 fee for a two-year permit. They would also need to provide proof of ownership, insurance and pass fire safety inspections.

The proposed start date for the new short-term rental regulations is July 1, 2024, with a 60-day grace period. This would allow short-term rental operators to continue hosting through the busy summer track season before needing to register and pay the fee.

However, the proposed regulations have sparked controversy and debate among Saratoga Springs residents and short-term rental hosts. A newly formed group called the Saratoga Springs Rental Rights Alliance is calling on the city to slow down and reconsider aspects of the legislation, including the $1,000 fee, which they say is too high compared to hotel licensing fees.

Before investing in a short-term rental property in Saratoga Springs, it's critical to stay current on the status of the proposed regulations. Attend city council meetings, join local host groups, and contact the Accounts Department to get clarity on the rules. Failing to properly register and comply with the new law could result in fines or having your listing removed.

With the growing popularity of "the sharing economy" and vacation rental platforms, many cities like Saratoga Springs are grappling with how to effectively regulate the industry to balance the benefits of tourism with impacts on housing affordability and quality of life for residents. By engaging with the city and advocating for fair rules, short-term rental hosts can help shape the future of the industry in Saratoga Springs.

Short-Term Rental Licensing Requirement in Saratoga Springs

Under the proposed short-term rental regulations, hosts in Saratoga Springs would need to register their property with the city and obtain a permit in order to legally operate. The permit would cost $1,000 and be valid for two years.

To apply for a short-term rental permit, hosts would need to provide various information and documents to the city, including:

• Proof of property ownership
• Proof of $1 million liability insurance
• A fire safety inspection report (required annually, with a separate fee)
• Floor plans of the short-term rental unit
• Local contact information for a property manager available 24/7
• Agreement to collect and remit occupancy taxes

After receiving a permit, hosts would be issued a registration number that must be included on all short-term rental listings and advertisements. The city would have the right to revoke permits and issue fines for violations of the short-term rental ordinance.

The proposed licensing requirement has been one of the most contentious parts of the new legislation. The Saratoga Springs Rental Rights Alliance argues the $1,000 fee is exorbitant, especially compared to large hotels' $150 application fee. They want the city to reconsider the fee amount.

City officials say the permit fees are necessary to cover the costs of administering and enforcing the new short-term rental program, which will require hiring additional staff. Accounts Commissioner Dillon Moran argues that while short-term rentals provide benefits, they need to be properly regulated to protect neighborhoods and housing stock.

For hosts who only rent their property a few weekends a year during busy tourist times, the $1,000 permit fee may be cost-prohibitive. Some have argued that the city should have a tiered fee structure based on how many nights per year a property is rented in the short term.

As the city continues to debate and refine the proposed regulations, the licensing requirements and fees could still change before the final law is passed. Short-term rental operators should closely follow the legislative process and make their voices heard to help shape fair and reasonable rules.

Required Documents for Saratoga Springs Short-Term Rentals

To apply for a short-term rental permit under Saratoga Springs' proposed regulations, hosts would need to submit the following required documents:

1. Proof of ownership for the short-term rental property, such as a deed or tax bill. This is to verify that the person applying for the permit is the legal owner.
2. Proof of liability insurance covering at least $1 million in damages. Many homeowners' insurance policies do not cover short-term rental activity, so hosts may need to purchase an additional policy or rider.
3. A fire safety inspection report from the Saratoga Springs Fire Department. This inspection would need to be completed annually, and hosts would have to pay a separate fee. The property must have working smoke alarms, carbon monoxide detectors, fire extinguishers, and meet other safety requirements.
4. A floor plan of the short-term rental unit showing room dimensions, exits, and locations of fire safety equipment. This is to verify the space meets all building and zoning codes.
5. The name and contact information for a local property manager or representative who is available 24 hours a day, 7 days a week, to respond to any issues or complaints at the property. They must live within 30 minutes of the short-term rental.
6. A signed agreement to collect and remit all applicable state, county, and city occupancy taxes from short-term rental guests. Hosts would be responsible for filing regular tax returns.

Gathering all the required documents, passing inspections, and designating a local contact may be time-consuming and costly for hosts, especially those who only rent their property occasionally. Some have questioned whether the requirements are overly burdensome for a residential property that is not a full-time commercial rental.

However, city officials argue the regulations are necessary to ensure short-term rentals are safe for guests and do not negatively impact surrounding neighborhoods. The fire safety inspections and local contact requirements are intended to address issues in other cities with high concentrations of short-term rentals, such as parties, noise, and parking problems.

The Saratoga Springs Rental Rights Alliance has called on the city to simplify the permit application process and reduce the documentation requirements, especially for hosts who rent their properties infrequently. They argue the extensive rules may deter some residents from participating in short-term rentals altogether.

As the city council continues to discuss the proposed short-term rental ordinance, they will need to weigh the importance of protecting public safety and neighborhood character while not overburdening hosts. Striking the right balance in the permitting requirements will be key to creating an effective and fair regulatory system.

Saratoga Springs Short-Term Rental Taxes

In addition to permit fees, short-term rental hosts in Saratoga Springs would be responsible for collecting and remitting occupancy taxes under the proposed regulations. This includes the Saratoga County occupancy and New York State sales taxes.

The Saratoga County occupancy tax rate is currently 1% of the listing price per night. So, for a short-term rental that costs $200 per night, the county tax would be $2.

The New York State sales tax rate is 7% in Saratoga County as of 2024. This tax applies to all short-term rentals, even if the host only rents their property occasionally. On a $200 per night rental, the state sales tax would be $14.

So, in total, short-term rental guests in Saratoga Springs would pay an 8% tax on their nightly rate - 1% for the county occupancy tax and 7% for the state sales tax. On a $200 per night rental, that equates to $16 in taxes.

Hosts would be required to file occupancy tax returns with the county treasurer's office on a quarterly basis. They would also need to file state sales tax returns with the New York Department of Taxation and Finance. Failure to collect and remit the appropriate taxes could result in fines and penalties.

Some short-term rental advocates argue the combined 8% tax rate is too high and could discourage visitors from booking Airbnbs and VRBOs in Saratoga Springs. They say it puts short-term rentals at a competitive disadvantage compared to hotels.

However, city officials note that hotels and traditional bed & breakfasts are subject to the same tax rates. They argue it's only fair for short-term rentals to contribute to the costs of public services and infrastructure that support tourism, just like other lodging businesses.

The issue of occupancy taxes has come up in other New York cities and counties grappling with regulating the growing short-term rental industry. Some, like Essex County in the Adirondacks, have instituted their own occupancy tax specifically on short-term rentals.

As more travelers turn to Airbnb and VRBO instead of traditional hotels, local governments see occupancy taxes as an important revenue stream. In popular tourist destinations like Saratoga Springs, ensuring that short-term rental hosts properly collect and remit taxes will be a key part of the city's regulatory framework.

Does Saratoga Springs Strictly Enforce STR Rules?

Based on discussions in real estate forums like Bigger Pockets and Reddit, it appears that Saratoga Springs intends to strictly enforce short-term rental regulations if the proposed ordinance is passed. The city seems to be taking a proactive approach to monitoring the growing vacation rental industry.

Under the proposed law, Saratoga Springs would invest in software to scan short-term rental listings and gather evidence of any unregistered or non-compliant properties. The Accounts Department would then contact the host and require them to either obtain a proper permit or remove their listing. Fines could be issued for violations.

This is something that some Airbnb and VRBO hosts are concerned about, especially those who rely on short-term rental income. In forums, hosts have expressed frustration with the $1,000 permit fee and extensive documentation requirements. Some have said they may choose to list their property in neighboring towns with less stringent rules instead.

However, others point out that Saratoga Springs is an extremely popular summer tourist destination, thanks to its famed racetrack and vibrant downtown. Even with the proposed regulations, demand for short-term rentals is likely to remain high during peak season. Hosts who are willing to comply with the permit process could still have a profitable business.

The general consensus among Saratoga Springs residents seems to be that some level of regulation of short-term rentals is necessary to protect housing stock and neighborhood character. In public comments, many have expressed concerns about "ghost hotels" owned by absentee landlords and operating without oversight.

Accounts Commissioner Dillon Moran has emphasized that the goal of the ordinance is not to ban short-term rentals entirely, but to create a legal pathway for them to operate responsibly. However, he has also made clear that the city will take enforcement seriously to maintain the integrity of the system.

Saratoga Springs would not be alone in cracking down on unregistered short-term rentals. Other popular New York tourist towns like Lake Placid and Woodstock have passed strict regulations in recent years and invested resources into enforcement.

As the city council continues to debate the proposed rules, short-term rental hosts in Saratoga Springs should pay close attention. Based on current discussions, it seems likely that the city will indeed expect full compliance with permit requirements and tax collection if the law is passed. Hosts should factor the potential costs of licensing, insurance, inspections, and occupancy taxes into their business plans.

How to Start a Short-Term Rental Business in Saratoga Springs

If you're interested in starting a short-term rental business in Saratoga Springs, here are the key steps to follow:

1. Research the proposed short-term rental regulations thoroughly. Stay up-to-date on the status of the legislation being considered by the City Council. Attend public hearings, join local host groups, and contact the Accounts Department for clarity on the rules. Understanding the regulatory landscape is critical before investing in a rental property.
2. Choose a suitable property in a desirable location. Look for a home or apartment that will appeal to visitors, ideally close to popular attractions like the Saratoga Race Course, downtown shops and restaurants, and Saratoga Spa State Park. Consider factors like neighborhood character, parking availability, and outdoor space.
3. Ensure the property meets all safety requirements. Install smoke detectors, carbon monoxide detectors, fire extinguishers, and clearly marked emergency exits. Have a fire safety inspection completed and make any necessary improvements to meet building codes. Guest safety should be a top priority.
4. Furnish and equip the rental to a high standard. Invest in comfortable, durable furniture and provide all the essentials guests expect, such as linens, kitchenware, and reliable WiFi. Create an inviting space with décor that reflects the character of Saratoga Springs. Consider hiring a professional designer for guidance.
5. Obtain proper insurance coverage. Contact your insurance provider to secure a policy that covers short-term rental activity and provides adequate liability protection. Some insurers offer specific vacation rental policies. Be clear about coverage limits and exclusions.
6. Register your short-term rental and obtain a permit. Once the city's registration system is active, apply for a short-term rental permit and pay the required fee. Provide all necessary documentation, such as proof of ownership and insurance. Display your permit number on all listings and advertisements.
7. Create detailed, compelling listings on popular booking platforms. Take high-quality photos that showcase your rental's best features. Write descriptions that highlight nearby attractions and amenities you offer. Be transparent about rules, pricing, and cancellation policies. Consider working with a professional photographer and copywriter.
8. Implement a dynamic pricing strategy. Use market data and pricing tools to set competitive nightly rates that fluctuate based on demand. Factor in events like the Saratoga Race Course meet and peak summer weekends. Continuously monitor and adjust prices to maximize occupancy and revenue.
9. Arrange for cleaning and maintenance between guests. Hire a reputable cleaning service to thoroughly clean and sanitize the rental after each stay. Conduct regular inspections and promptly address any maintenance issues that arise. Cleanliness and upkeep are key to positive reviews and repeat bookings.
10. Provide excellent customer service to guests. Promptly respond to inquiries and booking requests. Share recommendations for local activities, restaurants, and transportation. Be available to address any concerns that come up during stays. Go above and beyond to create memorable guest experiences.
11. Comply with tax collection and reporting requirements. Register with the proper state and local tax authorities. Collect and remit the required occupancy and sales taxes on each booking. Maintain accurate records and consult with a tax professional to ensure full compliance.
12. Continuously evaluate and improve your rental. Stay on top of industry trends and guest expectations. Gather feedback from reviews and guest communications. Reinvest a portion of profits into upgrades and amenities that will set your rental apart. Always look for ways to enhance the guest experience.

By following these steps and staying attuned to the evolving regulations, you can launch a successful short-term rental business in Saratoga Springs. Focus on compliance, quality, and customer service to stand out in an increasingly competitive market. With thoughtful planning and execution, you can create a profitable venture while contributing positively to the local tourism economy.

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

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

The best place to start is the Accounts Department, which is responsible for administering the proposed short-term rental registry and permitting process. You can reach out to Commissioner of Accounts Dillon Moran directly at 518-587-3550 ext. 2515 or email accounts@saratoga-springs.org. His office can provide the most up-to-date information on the status of the proposed legislation and how it may impact property owners.

For zoning-related questions, contact the Saratoga Springs Office of Planning and Economic Development at 518-587-3550 ext. 2575 or planning@saratoga-springs.org. They can help clarify the types of short-term rentals allowed in different zoning districts and any applicable restrictions.

The Building Department handles the enforcement of property maintenance, building codes, and zoning, so they are another important resource. Contact them at 518-587-3550 ext. 2511 or buildinginspector@saratoga-springs.org with any complaints or concerns about specific short-term rental properties.

If you are unsure which department to contact, you can always start with the main City Hall phone number at 518-587-3550, and they can direct you to the appropriate person or office.

It's also a good idea to get connected with local host groups and short-term rental alliances to stay informed and share experiences with other property owners. The newly formed Saratoga Springs Rental Rights Alliance is one such group that has been active in the discussions around the proposed regulations. You can find them on Facebook or by email at saratogaspringsrra@gmail.com.

Finally, keep an eye on the city's website at saratoga-springs.org for any announcements, public hearing schedules, and copies of the proposed legislation. The more you can stay engaged and informed, the better positioned you will be to navigate any changes in short-term rental policies in Saratoga Springs.

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

To gauge the sentiment of short-term rental hosts in Saratoga Springs regarding the proposed regulations, I searched through discussions on Reddit and Bigger Pockets. Here are a few relevant threads that provide insight into hosts' perspectives:

Reddit /r/Saratoga - "Proposed short-term rental regulations spark controversy"

In this thread, Saratoga Springs hosts discuss the recent public hearing on the proposed rules. Many express frustration with the $1,000 permit fee, calling it excessive compared to hotel licensing costs. Some worry the regulations will drive short-term rentals to neighboring towns with less oversight. Others argue some level of regulation is necessary to preserve neighborhood character and housing stock for residents.

Bigger Pockets Forum - "Advice for new host in Saratoga Springs"

A prospective host asks for guidance on starting a short-term rental in the city. Experienced hosts chime in, emphasizing the importance of understanding and complying with any new regulations. One notes, "The rules are getting stricter, but there's still opportunity if you do it right." Several mention the need to engage with local officials and host groups to stay informed as the situation evolves.

Reddit /r/AirBnB - "Who has had legal issues with local government for hosting?"

While not specific to Saratoga Springs, this thread includes a comment from a host in the city. They share that while short-term rentals are technically not allowed under current zoning, enforcement has been lax. However, they express concern that the proposed regulations signal a shift towards stricter oversight. The host advises others to be proactive in understanding and adapting to any rule changes.

Bigger Pockets Forum - "Saratoga Springs rental permit denied"

Here, a host vents about the challenges of getting their short-term rental permit application approved under the proposed system. Other hosts offer support, noting the city seems to be very particular about rentals meeting every requirement exactly. Some share similar experiences with initial denials and the need to persist in working with city officials.

Overall, the sentiment among Saratoga Springs hosts on these forums seems to be a mix of frustration with the proposed rules and a recognition that the short-term rental landscape is changing. Many acknowledge the need for some level of regulation but feel the proposed permit fee and requirements are overly burdensome, especially for occasional hosts.

The discussions underscore the importance of hosts staying engaged with local government, adapting to evolving regulations, and ensuring compliance to operate successfully. While the path forward may be challenging, hosts remain optimistic about the long-term viability of short-term rentals in Saratoga Springs, given the city's strong tourism appeal.

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.