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

Starting a Short-Term Rental Business in Saugerties

If you're considering starting a short-term rental business in Saugerties, New York, it's crucial to understand the local regulations. In 2022, the Town of Saugerties adopted Local Law 2, which establishes rules for short-term rentals like Airbnb and VRBO.

Under this law, only single-family homes, two-family homes, and accessory apartments are permitted to operate as STRs. Multifamily units are not allowed to be used as short-term rentals. Additionally, only the property owner is permitted to register an STR.

To legally operate an STR in Saugerties, property owners must obtain a permit through the Building Department. The permit application process involves submitting personal and property details to ensure compliance with local laws.

It's important to note that some areas of Saugerties have stricter regulations on STRs. For example, the Village of Saugerties recently amended its rental property law to include a provision specifically addressing short-term rentals. Under this amendment, STRs are defined as any dwelling unit rented for less than one month where the owner receives compensation.

Impact on Local Housing Market

The rise of short-term rentals has had a significant impact on the housing market in the Hudson Valley region, including Saugerties. Rents have increased at a much faster pace than wages, making it difficult for many residents to find affordable housing.

Some towns, like Saugerties and New Paltz, have adopted strict regulations on STRs in an effort to address this issue. However, the demand for short-term rentals remains high, particularly from visitors seeking weekend getaways from New York City.

Enforcement and Compliance

Enforcing STR regulations can be challenging for local authorities. In Saugerties, the building department has recommended using special use permits to regulate STRs, as this would make it easier to deal with problem properties.

Under a special use permit system, STR operators would need to go before the planning board for approval and could have their permit revoked if issues arise. This differs from a local law approach, which would require the building department to go through a time-consuming court proceeding to address violations.

Short-Term Rental Licensing Requirement in Saugerties

To legally operate a short-term rental in Saugerties, property owners must obtain a permit from the Town of Saugerties Building Department. The permit application process involves submitting personal and property details to ensure compliance with local laws.

Under the town's STR regulations adopted in 2022, only single-family homes, two-family homes, and accessory apartments are eligible for a short-term rental permit. Multifamily units are not permitted to be used as STRs. Additionally, the property owner must be the one to register the STR; individual permits are required for each qualifying property.

The cost of registering a short-term rental is $250 for the first year and $175 per year for annual renewals, which covers the cost of an inspection. Bed and breakfast permits, which are for owner-occupied properties, start at $75 for the application, with additional costs based on the amount of work needed to comply with codes.

Failure to obtain the necessary permit can result in fines of up to $1,000 per day. However, in February 2023, the Saugerties Town Board suspended these fines through July 31 after receiving complaints from lodging owners who claimed they were not informed about the new regulations.

It's important to note that the town's STR law is expected to be amended to address existing owners with more than one property used as lodging. Some owners had been hosting two short-term rentals on a single parcel for several years, and the current law prohibits this without acknowledging the opportunity for grandfathering in those operators.

Required Documents for Saugerties Short-Term Rentals

To apply for a short-term rental permit in Saugerties, property owners must submit several documents to the Building Department. These documents ensure that the property meets all necessary safety and zoning requirements.

One of the key documents is the STR application form, which requires the property owner to provide personal information, property details, and contact information for a local agent, such as a co-host or property manager, who can respond to any issues that may arise. The application also asks for the number of bedrooms in the rental unit, as this can impact occupancy limits and safety requirements.

In addition to the application form, property owners must submit proof of liability and property damage insurance for the rental unit. This insurance is essential to protect both the owner and the guests in case of accidents or damages.

Other required documents may include a floor plan of the rental unit, a site plan showing parking arrangements, and proof of compliance with fire safety regulations, such as smoke and carbon monoxide detectors. If the property has a septic system, the owner may need to provide documentation of its last inspection and cleaning.

Failure to provide all required documents can result in delays or denial of the STR permit application. The Building Department reviews each application carefully to ensure that the property meets all necessary standards before issuing a permit.

It's important to note that these document requirements apply specifically to short-term rentals, which are defined as rentals of less than 30 days where the owner does not reside on the property. Owner-occupied rentals, such as bed and breakfasts, may have different permitting requirements.

By requiring thorough documentation and inspections, the Town of Saugerties aims to balance the benefits of short-term rentals with the need to protect public safety and maintain the character of residential neighborhoods. Property owners who wish to operate STRs must be diligent in complying with these regulations to avoid fines and ensure a safe and positive experience for their guests.

Saugerties Short-Term Rental Taxes

In addition to obtaining the necessary permits and following operational requirements, short-term rental owners in Saugerties must also comply with various tax obligations. These taxes include state sales tax, county occupancy tax, and potentially other local taxes.

At the state level, New York imposes a sales tax of 4% on rentals of property for less than 90 days. This means that short-term rental owners in Saugerties must collect and remit this tax to the state.

Ulster County, where Saugerties is located, also levies a hotel and motel room occupancy tax. As of February 1, 2024, this tax rate increased from 2% to 4%. The occupancy tax applies to all short-term rentals in the county, regardless of whether they are listed on platforms like Airbnb or Vrbo.

The combined state and county taxes result in a total tax rate of 8% for short-term rentals in Saugerties. It is the responsibility of the short-term rental owner to collect these taxes from guests and remit them to the appropriate authorities.

Failure to comply with tax obligations can result in penalties and fines. Short-term rental owners should maintain accurate records of their rental income and taxes collected to ensure compliance with all applicable tax laws.

It's important to note that tax laws and rates can change over time, so short-term rental owners should stay informed about any updates or changes to their tax obligations. Consulting with a tax professional can help ensure full compliance with all relevant tax laws.

By understanding and fulfilling their tax responsibilities, short-term rental owners in Saugerties can operate their businesses in compliance with local regulations while contributing to the community's tax base.

New York Wide Short-Term Rental Rules

In addition to the specific regulations in Saugerties, it's important to understand the broader short-term rental rules that apply across New York State. The primary law regulating short-term rentals at the state level is the New York State Multiple Dwelling Law.

This law distinguishes between two main types of multiple dwelling units:

• "Class A" multiple dwellings include residential buildings like apartment houses, tenements, and other structures with three or more units. These dwellings are intended for permanent residence purposes only, defined as occupancy by the same person or family for 30 consecutive days or more. Short-term rentals are generally prohibited in "Class A" dwellings.
• "Class B" multiple dwellings include hotels, lodging houses, rooming houses, and other structures that are occupied transiently. These dwellings are designed for temporary lodging with or without meals. Short-term rentals are allowed in "Class B" dwellings.

The Multiple Dwelling Law essentially means that short-term rentals in most residential apartment buildings are not permitted for periods less than 30 days. This applies to all cities and towns in New York, not just Saugerties.

However, there are some exceptions to these rules. For example, if the permanent resident is present during the guest's stay, they may rent out a portion of their unit for less than 30 days. Additionally, in some cities like New York City, hosts may have up to two paying guests staying in their home for fewer than 30 days, as long as every guest has free and unobstructed access to every room and exit.

It's crucial for property owners and hosts to understand both the state-wide and local regulations that apply to their specific situation before listing their property as a short-term rental. Failure to comply with these laws can result in significant fines and penalties.

As the popularity of short-term rentals continues to grow, many municipalities across New York are grappling with how to balance the benefits of this industry with the need to protect housing availability and neighborhood character. By understanding and following the applicable regulations, hosts can operate their short-term rentals responsibly and avoid legal issues.

Does Saugerties Strictly Enforce STR Rules?

Based on discussions in online forums like Bigger Pockets and Reddit, it appears that Saugerties does enforce its short-term rental regulations more strictly compared to some other towns in the Hudson Valley region. The town has adopted a comprehensive law that requires STR operators to obtain permits, limits rentals to certain types of properties, and imposes other restrictions.

While some hosts may still attempt to operate STRs without proper permits, the risk of fines and penalties seems to deter many from doing so. In early 2023, the town sent violation notices to hundreds of property owners who were not in compliance with the new regulations, though it later suspended the fines temporarily after receiving complaints from STR owners.

Compared to nearby towns like Woodstock, which has a cap on STR permits and only allows rentals for 180 days per year, Saugerties appears to be somewhat more accommodating to short-term rentals. However, it is still far from being considered "Airbnb friendly" due to the various restrictions and permit requirements.

Some STR investors on Bigger Pockets have expressed frustration with the regulations in Saugerties and other Hudson Valley towns, noting that the rules can make it difficult to operate profitable short-term rentals. Others have advised prospective investors to carefully research the local laws and enforcement practices before purchasing a property and transforming it into a short-term rental.

Overall, while it may be possible to operate a short-term rental in Saugerties if one follows all the rules and obtains the necessary permits, the town's strict enforcement of its STR regulations makes it a less attractive location for Airbnb hosts compared to some other areas in the region. Investors should be prepared to navigate a complex web of local laws and face the possibility of fines or other penalties if they fail to comply.

How to Start a Short-Term Rental Business in Saugerties

If you're interested in starting a short-term rental business in Saugerties, New York, follow these steps to ensure compliance with local regulations and set yourself up for success:

1. Determine if your property qualifies for a STR permit. Only single-family homes, two-family homes, and accessory apartments on the same tax parcel are eligible. Multifamily units are not permitted to operate as STRs.
2. As the property owner, apply for a STR permit through the Town of Saugerties Building Department. Submit the required personal and property details, along with the $250 fee for the first year. Annual renewals cost $175.
3. Schedule and pass a yearly fire/safety inspection. The inspection report must be attached to your STR permit and annual renewal applications. Ensure your property complies with all New York State Building Code requirements and has no open violations.
4. Register your STR with Ulster County, as required by Ulster County Local Law #5 of 1991. Provide a copy of this registration with your STR permit application to the Town of Saugerties Building Department.
5. Submit all required documents with your STR permit application, including proof of liability and property damage insurance, a floor plan of the rental unit, a site plan showing parking arrangements, and proof of compliance with fire safety regulations.
6. If your property has a septic system, provide documentation of its last inspection and cleaning.
7. Ensure your STR meets the town's operational requirements, such as having a designated local contact person to address concerns within two hours of notification and adhering to occupancy limits based on the number of bedrooms.
8. Collect and remit all applicable taxes, including New York State sales tax (4%) and Ulster County hotel and motel room occupancy tax (4% as of February 1, 2024).
9. Stay informed about any updates to local STR regulations and maintain accurate records of your rental income and taxes collected to ensure ongoing compliance.
10. Invest in quality furnishings, amenities, and professional photography to make your STR stand out and attract guests. Consider working with a reputable property management company to handle day-to-day operations and optimize your listing for maximum occupancy and revenue.

By following these steps and prioritizing compliance with local regulations, you can successfully launch and operate a short-term rental business in Saugerties, New York.

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

If you have questions or concerns about short-term rental regulations and zoning in Saugerties, the best place to start is by contacting the Town of Saugerties Building Department. The Building Department is responsible for enforcing the town's short-term rental law and can provide guidance on the permit application process, required documents, and safety inspections.

You can reach the Building Department by phone at 845-246-2800 ext. 333 or by email at building@saugertiesny.gov. The department is located at 4 High Street in Saugerties and is open Monday through Friday from 8:00 a.m. to 4:00 p.m.

The key contact person in the Building Department for short-term rental matters is Alvah Weeks Jr., who serves as the Building Inspector and Zoning Administrator. You can reach him directly by email at AWeeks@saugertiesny.gov.

For general inquiries about zoning and land use regulations in Saugerties, you can also contact the Town of Saugerties Planning Board. The Planning Board is responsible for reviewing and approving site plans, special use permits, and subdivisions, and can provide information on zoning districts, permitted uses, and development standards.

The Planning Board can be reached by phone at 845-246-2800 ext. 329 or by email at planning@saugertiesny.gov. The board meets on the third Tuesday of each month at 7:30 p.m. at the Frank D. Greco Senior Center, located at 207 Market Street in Saugerties.

By contacting these departments and officials, you can get the most up-to-date and accurate information on short-term rental regulations and zoning requirements in Saugerties. They can also assist you with the permit application process and answer any specific questions you may have about operating a short-term rental in the town.

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

Based on discussions in online forums like Reddit and Bigger Pockets, it appears that Airbnb hosts in Saugerties have mixed feelings about the local short-term rental regulations.

On Reddit, some hosts express frustration with the strict enforcement of STR rules in Saugerties compared to other towns in the Hudson Valley region. They note that the comprehensive law requiring permits, limiting rentals to certain property types, and imposing other restrictions can make it challenging to operate profitable short-term rentals.

However, other Reddit users argue that the regulations are necessary to address the impact of STRs on housing availability and neighborhood character. They suggest that hosts who follow the rules and obtain the necessary permits can still successfully operate short-term rentals in Saugerties.

On Bigger Pockets, a real estate investing forum, a user seeking guidance on investing in STRs in the Saugerties area received mixed responses. Some investors advised carefully researching local laws and enforcement practices before purchasing a property intended for use as an STR, noting that some areas like Kingston have stricter regulations than others.

Other Bigger Pockets members shared their experiences operating STRs in Saugerties and the surrounding region. They emphasized the importance of complying with local regulations, such as obtaining permits and passing safety inspections, to avoid fines and ensure a positive experience for guests.

Overall, while some Airbnb hosts in Saugerties may find the local regulations burdensome, others recognize the need to balance the benefits of short-term rentals with the potential impacts on the community. By staying informed about the rules and prioritizing compliance, hosts can continue to operate successful STRs in the area.

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.