Shelter Island Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Shelter Island

Shelter Island, a picturesque town located between the North and South Forks of Long Island, has implemented specific regulations governing short-term rentals like Airbnb and VRBO. These regulations aim to strike a balance between supporting the local tourism industry and preserving the residential character of the community. Here's an overview of the key requirements for operating an STR business in Shelter Island:

• Rental Permit and Registration: All property owners who rent or advertise for rent any property on Shelter Island for residential use must register their rental property with the Town's Department of Code Enforcement. This registration is valid for two calendar years and must be renewed periodically.
• Notification Requirement: Whenever a property is rented, the owner must notify the Department of Code Enforcement before the commencement of the rental term, providing details such as the rental registration number and rental dates.
• Minimum Rental Period: To maintain the residential character of the community, there is a two-week (14-day) minimum rental period in place. It is unlawful to rent, lease, or advertise for rent any residential property for a period of less than 14 days, unless specifically permitted under certain exceptions.
• Owner-Occupied Premises Exception: One exception to the 14-day minimum rental period is for owner-occupied premises, where the owner, trustee, president, or member of the legal entity resides on the same or immediately adjacent lot during the rental term.
• Homesteader's Hardship License: Owners whose primary residence is on Shelter Island and meet certain income criteria can obtain a "Homesteader's Hardship License," which allows them to rent their property one time in each seven-day period during peak season (Memorial Day to Labor Day) and one time in every 14-day period during the off-peak season.
• Limited Commercial Vacation Rental License: Property owners not eligible for the Homesteader's Hardship License can apply for a "Limited Commercial Vacation Rental License," which permits them to rent their licensed premises one time in any 14-day period. However, there are restrictions on multiple licenses for the same owner or legal entity.

Advertising and Operational Requirements

Advertising Regulations: Any advertisement for a rental property on Shelter Island must include the rental registration number, the total number of bedrooms, and the minimum permitted rental term.

1. Occupancy Limits: The total occupancy of any rental shall not exceed two times the number of legal bedrooms, except for children under the age of three.
2. Good Neighbor Brochure: Owners must provide a copy of the Town's "Good Neighbor Brochure" to tenants, outlining guidelines for responsible behavior and respect for the community.
3. Local Contact: Owners must provide their personal cell phone number or the contact information of a local representative to the Town and neighbors within 200 feet of the rental property in case of any issues or complaints.
4. Self-Checklist: Applicants for a Vacation Rental License must submit a notarized self-checklist verifying the property's compliance with relevant federal, state, county, and town regulations.

Enforcement and Penalties

Shelter Island has implemented various enforcement measures and penalties for violations of the STR regulations, including:

1. Complaints and Investigations: The Town's Code Enforcement Department handles complaints and investigates potential violations of the STR regulations.
2. Penalties: Violations can result in hefty fines, with the potential for license suspension or revocation in cases of repeated or severe infractions.
3. Quality of Life Enforcement: The Town has provisions for enhanced enforcement measures to address quality-of-life issues related to vacation rentals, such as noise complaints or overcrowding.

It's important to note that these regulations are subject to change, and property owners should consult the Town's official sources or seek legal advice for the most up-to-date information and guidance on operating a short-term rental business in Shelter Island.

Short-Term Rental Licensing Requirement in Shelter Island

In Shelter Island, property owners who wish to rent out their residential properties for short-term stays of 14 days or less are required to obtain a Vacation Rental License from the Town. The key licensing requirements include:

Limited Commercial Vacation Rental License

1. Property owners not eligible for the Homesteader's Hardship License can apply for this license.
2. Allows renting the licensed premises one time in any 14-day period.
3. Valid for two calendar years and must be renewed periodically.
4. License fee set by the Town Board.
5. Only one license permitted per owner or legal entity on Shelter Island.
6. Corporate entities must disclose all partners, members, trustees, etc. and verify none hold another vacation rental license.
7. License is non-transferable and specific to the property and owner named.

Application Process

1. Complete application form with property details, number of bedrooms, claimed exemption, or license type.
2. Provide a local contact person's information for complaints and emergencies.
3. Submit a notarized self-checklist verifying compliance with relevant regulations.
4. Designate an agent for service of legal process, either a local resident or the Town Clerk.

Advertising Requirements

Include the rental registration number, number of bedrooms, and minimum rental term (14 days) in all advertisements.

Occupancy Limits

Total occupancy cannot exceed two times the number of legal bedrooms, except for children under 3 years old.

Rental Notification

Notify the Town's Code Enforcement Department before each rental term with the registration number and rental dates.

Failure to comply with the licensing requirements and regulations can result in penalties, including fines, license suspension, or revocation. It's crucial for property owners to familiarize themselves with the specific rules and guidelines outlined in the Town's rental regulations.

Required Documents for Shelter Island Short-Term Rentals

To operate a short-term rental business in Shelter Island, property owners must submit several documents as part of the licensing and registration process. Here are the key documents required:

Application Form

Complete the application form provided by the Town, including details such as the property address, number of bedrooms, and the type of license or exemption being claimed (e.g., Limited Commercial Vacation Rental License, Homesteader's Hardship License).

Proof of Income (for Homesteader's Hardship License)

If applying for the Homesteader's Hardship License, owners must provide proof that their annual gross income (less net rental income) is less than 500% of the United States Department of Health and Human Services Poverty Guidelines. This is typically verified by submitting redacted copies of federal income tax returns for the most recent tax year.

Notarized Self-Checklist

Every applicant for a Vacation Rental License must submit a notarized self-checklist, verifying the property's compliance with relevant federal, state, county, and town regulations.

Local Contact Information

Owners must provide the Town and neighbors within 200 feet of the rental property with the owner's personal cell phone number and/or the name, address, phone number, and email address of a local contact person designated as the owner's agent or representative residing on Shelter Island.

Agent for Service of Process

Owners must execute a written statement designating an agent for service of criminal and civil process. This agent must either be a person, firm, partnership, or corporation with an actual place of business or residence within the Town of Shelter Island, or the Town Clerk.

Corporate Disclosure (for Legal Entities)

If the owner is a legal entity (corporation, LLC, trust, partnership), documentation naming all partners, members, settlors, trustees, beneficiaries, shareholders, officers, and directors must be provided, along with a statement verifying that none of these individuals hold or have applied for another vacation rental license on Shelter Island.

Certificate of Occupancy or Compliance

Owners must ensure that the rental property has a valid and current certificate of occupancy or certificate of compliance, as required by the Town's building and zoning codes.

It's important to note that these requirements may change over time, and property owners should consult the Town's official sources or seek legal advice to ensure they have the most up-to-date information on the required documents for short-term rentals in Shelter Island.

Shelter Island Short-Term Rental Taxes

Property owners operating short-term rentals in Shelter Island must be aware of and comply with various tax obligations. Here are the key taxes that apply to vacation rentals in the area:

Suffolk County Hotel/Motel Tax

1. A tax of 3% is imposed on all rent for every occupancy of hotel or motel rooms, as well as rentals of houses, apartments, or other premises for dwelling purposes for a period of less than 30 days.
2. This tax applies to short-term rentals, including those facilitated through platforms like Airbnb and VRBO.
3. Hosts are responsible for collecting the tax from guests and remitting it to Suffolk County on a quarterly basis.

New York State Sales Tax

1. In addition to the county tax, New York State imposes a sales tax on short-term rentals.
2. The current state sales tax rate for Shelter Island is 8.625%.
3. Hosts must collect this tax from guests and remit it to the state along with their regular sales tax filings.

Local Compliance and Reporting

1. While Shelter Island does not currently impose a separate local tax on short-term rentals, hosts must comply with the Town's rental regulations and licensing requirements.
2. Hosts may be required to provide documentation of tax compliance as part of the licensing process or upon request from local authorities.

It's important to note that tax rates and regulations are subject to change, and hosts should consult with local tax authorities or seek professional advice to ensure they are compliant with all applicable taxes and reporting requirements.

Failure to collect and remit the appropriate taxes can result in penalties, fines, and potential legal consequences. Maintaining accurate records and staying up-to-date with tax obligations is crucial for operating a successful and compliant short-term rental business in Shelter Island.

New York Wide Short-Term Rental Rules

New York State has implemented statewide regulations governing short-term rentals, in addition to local laws enacted by individual cities and towns. Here are some key statewide rules:

Multiple Dwelling Law

According to the New York State Multiple Dwelling Law, short-term rentals are generally prohibited in "Class A" multiple dwellings, which include most residential apartment buildings and condominiums with three or more permanent residential units.

However, short-term rentals may be allowed in "Class B" multiple dwellings, such as hotels, motels, and other buildings designed for transient occupancy.

Definition of Short-Term Rental

For the purposes of the Multiple Dwelling Law, a short-term rental is defined as a rental period of less than 30 consecutive days.

However, for tax purposes, short-term rentals are defined as rentals of fewer than 90 consecutive days.

Exceptions and Owner-Occupied Rentals

There are some exceptions to the short-term rental restrictions in "Class A" multiple dwellings, such as owner-occupied rentals where the owner remains present during the guest's stay.

In these cases, guests must have free and unobstructed access to all rooms and exits within the dwelling, and internal doors cannot have key locks that could create barriers in an emergency.

Safety and Code Compliance

Short-term rental properties in New York State must be maintained in a safe and code-compliant condition, adhering to relevant building, fire, and safety codes.

Tax Obligations

Short-term rental hosts in New York State are required to collect and remit applicable state and local taxes, including state sales tax (4%), local sales tax, and local occupancy or hotel taxes (which vary by county and city).

It's important to note that while these statewide rules provide a general framework, many cities and towns in New York have implemented additional local regulations for short-term rentals. Property owners and hosts should familiarize themselves with both state and local laws before operating a short-term rental business.

Does Shelter Island Strictly Enforce STR Rules? Is Shelter Island Airbnb Friendly?

Based on discussions on online forums like Bigger Pockets and Reddit, as well as reports from local news outlets, it appears that Shelter Island takes a relatively strict approach to enforcing its short-term rental regulations compared to other cities.

Many hosts and property owners express frustration with the Town's 14-day minimum rental period rule, which prohibits renting out properties for shorter durations unless specific exemptions apply. This restriction is seen as overly burdensome and limiting, especially for those who rely on the income from short-term rentals.

Furthermore, the requirement to obtain a rental permit, provide local contact information, and comply with occupancy limits and other regulations is viewed by some as excessive government overreach. Several hosts have reported receiving fines or warnings from the Town for non-compliance, indicating that the rules are actively enforced.

However, it's important to note that the Town's stance on STRs is driven by a desire to preserve the island's tranquil character and prevent overcrowding, noise, and other nuisances associated with high-volume short-term rentals. Supporters of the regulations argue that they strike a balance between allowing responsible rentals and protecting the quality of life for year-round residents.

Despite the strict rules, there are still hosts who operate on Shelter Island, either by adhering to the regulations or by disregarding them and taking the risk of potential fines or penalties. Some hosts have expressed frustration with the lack of enforcement against non-compliant properties, creating an uneven playing field.

Overall, while Shelter Island may not be considered an "Airbnb-friendly" destination compared to cities with more relaxed regulations, the Town's approach reflects its commitment to maintaining the island's unique character and addressing the concerns of residents regarding the impact of short-term rentals.

How to Start a Short-Term Rental Business in Shelter Island

To start a short-term rental business in Shelter Island, New York, follow these steps:

1. Register Your Rental Property: All property owners who rent or advertise for rent any property on Shelter Island for residential use must register their rental property with the Town's Department of Code Enforcement. This registration is valid for two calendar years and must be renewed periodically.
2. Determine Your Eligibility for a License: Evaluate whether you qualify for a Homesteader's Hardship License or a Limited Commercial Vacation Rental License based on the criteria outlined in the Town's regulations. This will determine the frequency and duration of rentals you are permitted to offer.
3. Obtain a Vacation Rental License (if required): If you do not qualify for the Homesteader's Hardship License, apply for a Limited Commercial Vacation Rental License. This license allows you to rent your property one time in any 14-day period. Provide the required documentation, including proof of ownership, corporate disclosure (if applicable), and a notarized self-checklist verifying compliance with relevant regulations.
4. Comply with Building and Zoning Codes: Ensure that your rental property has a valid and current certificate of occupancy or certificate of compliance and meets all applicable building and fire codes. The number of bedrooms and occupancy limits must align with the approved plans on file with the Building Department.
5. Provide Local Contact Information: Designate a local contact person residing on Shelter Island and provide their contact information, as well as your personal cell phone number, to the Town and neighbors within 200 feet of the rental property.
6. Familiarize Yourself with Advertising Requirements: When advertising your rental property, include the rental registration number, the total number of bedrooms, and the minimum permitted rental term (14 days). Ensure that the listed occupancy does not exceed the maximum allowed by your license.
7. Prepare the "Good Neighbor Brochure": Obtain a copy of the Town's "Good Neighbor Brochure" and provide it to tenants, outlining guidelines for responsible behavior and respect for the community. Incorporate these guidelines into the rental agreement.
8. Maintain Rental Records: Keep rental agreements and rental registries on the premises for each rental period.
9. Comply with Notification Requirements: Notify the Department of Code Enforcement before the commencement of each rental term, providing the rental registration number and rental dates.
10. Stay Updated on Regulations: Regularly check for any updates or changes to the Town's short-term rental regulations to ensure ongoing compliance and avoid penalties or fines.

Remember, failure to comply with the regulations can result in fines, license suspension, or revocation. It's crucial to familiarize yourself with the specific rules and guidelines outlined in the Town's rental regulations and seek professional advice if needed.

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

If you have questions or need assistance regarding short-term rental regulations and zoning in Shelter Island, you can contact the following departments:

Code Enforcement Department

The Code Enforcement Department is responsible for enforcing the Town's short-term rental regulations, including registration, licensing, and compliance with occupancy limits and other requirements.

Phone: 631-749-0772

Building Department

The Building Department oversees zoning and building code compliance for rental properties. They can provide information on certificates of occupancy, legal bedroom counts, and other zoning-related matters.

Phone: 631-749-0772

Zoning Board of Appeals

The Zoning Board of Appeals (ZBA) is responsible for interpreting and granting variances from the Town's zoning regulations. If you need to appeal a zoning decision or seek a variance related to your short-term rental property, you can contact the ZBA.

Phone: 631-749-0772

Town Clerk's Office

The Town Clerk's Office can provide information on local laws, ordinances, and regulations related to short-term rentals, as well as assist with obtaining necessary forms and applications.

Phone: 631-749-1166

When contacting these departments, be prepared to provide your property address, rental registration number (if applicable), and a clear explanation of your inquiry or concern. It's advisable to follow up with written correspondence or documentation to ensure a proper record of your communication.

Remember, the regulations and contact information are subject to change, so it's always best to verify the most up-to-date information with the Town's official sources or seek professional legal advice if needed.

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

Based on discussions on Reddit and Bigger Pockets, there are mixed opinions among Airbnb hosts and property owners regarding Shelter Island's short-term rental (STR) regulations:

Supportive of Regulations

Some hosts acknowledge the need to balance tourism and preserving the residential character of the community. They support the regulations as a reasonable compromise.

A few hosts operate legally within the rules, obtaining the required licenses and adhering to the minimum rental period and other requirements.

Frustrated by Strict Rules

Many hosts express frustration with the 14-day minimum rental period rule, which they view as overly restrictive and limiting their potential income.

Some argue that the regulations are excessive government overreach and infringe on their rights as property owners.

There are complaints about the licensing process, notification requirements, and occupancy limits being burdensome.

Concerns about Enforcement

While some hosts comply with the regulations, others disregard them and operate illegally, taking the risk of potential fines or penalties.

A common concern is the lack of consistent enforcement against non-compliant properties, creating an uneven playing field.

Calls for Relaxed Rules

Some hosts advocate for more relaxed regulations, such as shorter minimum rental periods or fewer restrictions on the number of licenses per owner.

They argue that responsible short-term rentals can coexist with the residential community if properly regulated.

Overall, the opinions reflect the ongoing debate between preserving community character and accommodating the growing demand for short-term rentals. While some hosts support the regulations as a necessary measure, others view them as overly restrictive and detrimental to their business interests.

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.