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

What are Short-Term Rental (Airbnb, VRBO) Regulations in Westchester County, New York?

Short-term rentals through platforms like Airbnb and Vrbo have become increasingly popular in Westchester County, New York. However, hosts looking to start a vacation rental business need to navigate a patchwork of state, county, and local regulations. Here's an overview of the key rules and considerations for operating short-term rentals in Westchester.

Starting a Short-Term Rental Business in Westchester County

At the state level, New York defines short-term rentals as renting a dwelling for less than 30 consecutive days. The primary law regulating short-term rentals is the New York State Multiple Dwelling Law. This prohibits short-term rentals in "Class A" residential multifamily buildings, unless the permanent resident is present throughout the stay.

However, many Westchester County cities and towns have their own additional short-term rental regulations. For example, in New Rochelle, the zoning code only allows short-term rentals if the owner lives in the property and is present during guest stays. Non-owner-occupied rentals are prohibited in residential districts.

There don't appear to be any county-wide permits or licenses required specifically for short-term rentals in Westchester. But hosts likely need to:

• Ensure short-term rentals are allowed by their mortgage lender, lease, HOA, etc.
• Obtain a standard rental permit from their local building department
• Register to collect state and local sales taxes (up to 15.5% in some areas)
• Obtain proper insurance coverage for operating a short-term rental business

Some Westchester communities like Croton, Dobbs Ferry, and Yonkers have also adopted the Emergency Tenant Protection Act (ETPA). This state law provides rent stabilization and other tenant protections in applicable buildings. While aimed more at long-term rentals, it's another regulation hosts should be aware of.

Before launching an Airbnb or Vrbo in Westchester County, carefully review the specific rules in your city or town. Contact your local building department or housing authority if you have questions. With the proper planning and compliance, a short-term rental can be a great business opportunity in this popular New York destination.

Short-Term Rental Licensing Requirement in Westchester County

While there are no county-wide short-term rental licensing requirements in Westchester, many individual cities and towns have their own regulations. It's important for hosts to check with their local building department or town hall to understand the specific rules in their area.

For example, in the Village of Irvington, short-term rental operators must obtain a permit from the Building Department. The application process involves:

1. Completing a Short-Term Rental Permit Application
2. Providing proof of ownership or consent from the property owner
3. Submitting a floor plan of the rental unit
4. Allowing a safety inspection of the property
5. Paying a permit fee of $250 for a two-year permit

The review process typically takes 2-4 weeks in Irvington. Operating a short-term rental without a permit can result in fines of $250-$1,000 per day.

Similarly, in the Town of Chester in Orange County, short-term rental hosts must:

1. Submit a Short-Term Rental Permit Application to the Building Department
2. Provide proof of ownership and consent from all owners
3. Attest that the property meets all safety requirements
4. Allow a property inspection, if required
5. Pay a $200 application fee for a one-year permit
6. Register with the Warren County Treasurer to collect occupancy taxes

Failure to obtain a permit in Chester can lead to fines of $500-$3,000 per violation.

Other Westchester communities like Mamaroneck, Greenburgh, and Mount Pleasant have also adopted short-term rental regulations in recent years. While the specific requirements vary, common elements include:

1. Registering with the local building department
2. Providing proof of ownership and property details
3. Allowing safety inspections to verify compliance with building codes
4. Collecting and remitting applicable occupancy taxes
5. Limiting the number of guests based on the property's size
6. Restricting rentals to owner-occupied properties in some cases

Before listing your property on Airbnb or Vrbo in Westchester County, take the time to thoroughly review your local regulations. Contact your building department if you have any questions about permit applications, fees, or inspection requirements. By operating your short-term rental responsibly and in compliance with local laws, you can avoid costly fines and help protect the character of your neighborhood.

Required Documents for Westchester County Short-Term Rentals

While short-term rental regulations vary by municipality in Westchester County, hosts generally need to submit the following documents when applying for a rental permit:

1. Short-Term Rental Permit Application: This is the main form hosts must complete and submit to their local building department. It collects key information about the property owner, rental unit, and planned rental operations. Obtain applications from your city or town building department.
2. Proof of Ownership: Hosts must provide a copy of the current deed demonstrating ownership of the rental property. If the owner is an LLC or trust, additional documentation may be required to identify the real owners. Get a copy of your deed from the Westchester County Clerk's Office.
3. Owner Consent Form: If the rental operator is not the sole property owner, they must obtain written consent from all other owners. This is often a separate form that must be signed and submitted with the permit application. Download consent forms from your local building department website or office.
4. Floor Plan: Some municipalities, like Irvington, require hosts to submit a floor plan or sketch of the rental unit. This helps verify the number of bedrooms, occupancy limits, and safety requirements. You can usually draw a simple floor plan yourself or hire a contractor.
5. Proof of Insurance: Hosts may need to provide a certificate of insurance demonstrating liability coverage for their short-term rental operations. Check with your local building department for the minimum required coverage amount. Contact your insurance agent to obtain the appropriate policy and certificate.
6. Tax Registration: Westchester County requires short-term rental operators to collect and remit occupancy taxes. Hosts must register with their local tax department and obtain a tax identification number. Contact your city or town finance office for registration forms and instructions.

Before submitting your short-term rental permit application, carefully review the requirements for your specific municipality. Additional documents, such as a safety inspection report or neighbor notification letter, may also be required. Reach out to your local building department if you have any questions about the application process or necessary paperwork.

Westchester County Short-Term Rental Taxes

Short-term rental hosts in Westchester County need to be aware of several taxes that apply to their rental business. The primary tax is the Westchester County Hotel Room Occupancy Tax. This tax is 3% of the rental price, including any cleaning fees, for stays of 89 nights or less. Hosts must register with the county within 3 days of starting their rental business and file quarterly tax returns.

In addition to the county tax, short-term rentals may also be subject to New York State sales tax of 4% and various local sales taxes. The total combined sales tax rate in Westchester County is 8.375%. This includes the 4% state sales tax, the 3% county room occupancy tax, and a 1.375% county sales tax.

Airbnb collects and remits some of these taxes on behalf of hosts in Westchester County. For reservations 88 nights and shorter, Airbnb collects the 3% Westchester County Room Occupancy Tax. However, hosts are still responsible for registering with the county and filing quarterly returns.

Hosts must also report all short-term rental income on their federal and state income tax returns. Rental income is generally reported on IRS Schedule E. However, if you rent your property for 14 days or less per year, that rental income is tax-free and does not need to be reported.

Fortunately, short-term rental hosts can deduct many of their rental expenses to reduce their taxable income. Some common deductible expenses include:

1. Mortgage interest
2. Property taxes
3. Insurance
4. Utilities
5. Cleaning and maintenance costs
6. Supplies
7. Repairs

Hosts should keep detailed records and receipts for all rental expenses. Consult with a tax professional to ensure you are properly reporting your rental income and maximizing your deductions.

In summary, the main taxes Westchester short-term rental hosts need to be aware of are:

1. 3% Westchester County Room Occupancy Tax
2. 4% New York State Sales Tax
3. 1.375% Westchester County Sales Tax
4. Federal and state income taxes on rental profits

By understanding their tax obligations, registering with the proper authorities, and taking allowable deductions, short-term rental hosts can run a successful and compliant business in Westchester County.

New York State-Wide Short-Term Rental Rules

In addition to local regulations in Westchester County, short-term rental hosts must also comply with state-wide laws in New York. These rules provide a baseline framework that individual counties and municipalities can build upon.

The primary state law impacting short-term rentals is the New York State Multiple Dwelling Law (MDL). This law prohibits renting out apartments in "Class A" buildings (buildings with three or more permanent residential units) for periods of fewer than 30 days, unless the permanent tenant is present during the rental period.

The MDL aims to preserve affordable housing and maintain the residential character of neighborhoods. Hosts in Westchester County operating short-term rentals in multi-unit buildings need to ensure their guests stay for a minimum of 30 days, or that they remain present in the unit throughout the guest's stay.

New York State also requires short-term rental platforms like Airbnb to share data on host activity with local authorities. As of January 2021, booking services must disclose information including:

1. Host name and contact details
2. Address and listing details
3. Booking and payment information

This data-sharing law helps local regulators enforce short-term rental ordinances and identify illegal rental activity. Westchester County hosts should be aware that their information may be reported by rental platforms to comply with this state mandate.

Hosts must also collect and remit state sales taxes on their short-term rental income. The combined state sales and use tax rate is 4%, in addition to any local sales taxes. Failing to properly collect and pay taxes can result in fines and legal issues for hosts.

Lastly, it's important to note that New York State law prohibits advertising short-term rentals that would violate the MDL if rented. Hosts cannot list apartments in Class A buildings for stays shorter than 30 days. Fines for illegal advertisements range from $1,000 to $7,500.

While municipalities in Westchester County may have additional restrictions, all short-term rental operators must comply with these baseline state-wide rules. By understanding New York's Multiple Dwelling Law, data-sharing provisions, tax obligations, and advertising restrictions, hosts can ensure they operate legally across the state.

Does Westchester County Strictly Enforce Short-Term Rental Rules?

Based on discussions among Airbnb hosts on forums like Bigger Pockets and Reddit, Westchester County appears to have a mixed track record when it comes to enforcing short-term rental regulations. While the county does have rules restricting non-owner occupied rentals in many residential areas, actual enforcement seems to vary significantly by municipality.

Some hosts report operating successfully in Westchester for years without any issues from local authorities. One host on Bigger Pockets shared, "I've been doing Airbnb in Westchester for 3 years now with multiple properties and haven't had any real problems." This suggests certain towns may take a more hands-off approach unless a complaint is filed.

However, other hosts have faced enforcement actions for violating local ordinances. In New Rochelle, for example, the city issued a cease and desist order to a property owner who listed a home on Airbnb without living in it themselves. The city does actively respond to complaints about illegal short-term rentals.

Overall, Westchester County is not as Airbnb-friendly as some other popular short-term rental destinations. The county's patchwork of local regulations and zoning codes creates a lot of gray areas for hosts to navigate. And the fact that many towns prohibit non-owner occupied rentals limits the ability to operate STRs strictly as investment properties.

That said, a sizable number of hosts do seem to operate in Westchester despite the rules and potential for enforcement. On Reddit, one host commented, "I would say go for it, just be ready to deal with angry neighbors who might report you." So while the county may not openly embrace Airbnb, hosts are finding ways to make it work, even if it means risking fines or the ire of local residents.

In summary, Westchester County's relationship with short-term rentals is complicated. Enforcement of STR rules definitely happens, but not always consistently. The county is not overtly Airbnb-friendly, but hosts still operate here, though they need to be willing to navigate some regulatory challenges. Carefully research the specific rules in your town, be respectful of neighbors, and have a plan for handling any enforcement issues that may arise.

How to Start a Short-Term Rental Business in Westchester County

Starting a short-term rental business in Westchester County requires careful planning and compliance with various state and local regulations. Here are the key steps to get your Airbnb or Vrbo up and running:

• Research Local Regulations: Before investing in a rental property, thoroughly review the short-term rental rules in your target town or village. Many municipalities in Westchester, like Irvington, require special permits and limit rentals to owner-occupied properties. Contact your local building department for specific requirements.
• Register Your Business: Once you confirm short-term rentals are allowed, register your business with the state and obtain an Employer Identification Number (EIN) from the IRS. If operating as a sole proprietor, you can use your Social Security Number instead.
• Obtain Required Permits: Apply for a short-term rental permit with your local building department. This typically involves submitting an application, proof of ownership, floor plan, and other supporting documents. Pay attention to application deadlines and allow ample time for processing.
• Get an Inspection: Many towns require a safety inspection of your rental property before issuing a permit. Schedule this promptly to avoid delays. Ensure your property meets all building codes and have any necessary repairs made beforehand.
• Register to Pay Taxes: Short-term rentals in Westchester are subject to various state and local taxes, including sales tax and hotel occupancy taxes. Register with the appropriate tax authorities and establish a system for collecting and remitting these taxes regularly.
• Obtain Insurance: Contact your insurance provider about obtaining coverage for your short-term rental business. You may need to add a rider to your homeowner's policy or purchase separate commercial liability insurance. Proper coverage is essential for protecting your investment.
• Create House Rules: Establish clear house rules for your guests, including quiet hours, occupancy limits, parking instructions, and pet policies. Having these in writing can help prevent misunderstandings and ensure a smooth rental experience.
• List Your Property: Once you have all your permits and preparations in order, create a listing for your rental on Airbnb, Vrbo, or other booking platforms. Hire a professional photographer to showcase your space in the best light. Write an accurate, compelling description and set competitive rates.
• Manage Your Bookings: As reservations start coming in, have a system in place for managing bookings, communicating with guests, and coordinating cleanings between stays.
• Keep Good Records: Maintain detailed records of all rental income and expenses for tax purposes. Use a bookkeeping system like QuickBooks or hire an accountant to stay organized. Keeping good records from the start will make tax season much less stressful.

By following these steps and staying compliant with local regulations, you can launch a successful short-term rental business in Westchester County. It's an attractive market given its proximity to New York City. But doing your due diligence on permits and zoning rules is essential. Once you're up and running, focus on providing great guest experiences to earn positive reviews and keep your calendar full.

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

If you have questions about short-term rental regulations or zoning in your specific municipality, the best place to start is your local building department. Here are the contact details for building departments in some of Westchester's larger towns and villages:

• Ardsley: 507 Ashford Avenue, Ardsley, NY 10502 | (914) 693-6961
• Bedford Hills: 425 Cherry Street, Bedford Hills, NY 10507 | (914) 666-8040
• Cortlandt: 1 Heady Street, Cortlandt Manor, NY 10567 | (914) 734-1010
• Greenburgh: 177 Hillside Avenue, Greenburgh, NY 10607 | (914) 989-1561
• Harrison: 1 Heineman Place, Harrison, NY 10528 | (914) 670-3050
• Irvington: 85 Main Street, Irvington, NY 10533 | (914) 591-8335
• New Rochelle: 515 North Avenue, New Rochelle, NY 10801 | (914) 654-2035
• White Plains: 70 Church Street, White Plains, NY 10601 | (914) 422-1269
• Yonkers: 87 Nepperhan Avenue, 4th Floor, Yonkers, NY 10701 | (914) 377-6500

For general inquiries about planning and zoning in Westchester County, you can also contact the Westchester County Department of Planning:

Westchester County Department of Planning
148 Martine Avenue, Room 432
White Plains, NY 10601
Phone: (914) 995-4400
Email: Planning@westchestergov.com

The Department of Planning website also has useful information about the county's zoning referral process and an interactive map of recent planning and zoning actions.

In addition to official government resources, connecting with other short-term rental hosts in Westchester can be extremely valuable for navigating local regulations. Some helpful online communities include:

• The Westchester County Airbnb Hosts Facebook Group
• The Westchester County Short-Term Rental Operators group on BiggerPockets
• The Westchester subreddit, which has occasional discussions about short-term rentals

You can also find in-person networking opportunities through organizations like the Westchester Putnam Association of Realtors (WPAR) and the Hudson Gateway Association of Realtors (HGAR). Both host regular events and education sessions that can be great for meeting other local real estate investors and STR operators.

By utilizing these official contacts and peer communities, you'll be well-equipped to understand and comply with the short-term rental rules in your corner of Westchester County. Local building departments should always be your first stop, but networking with experienced hosts can provide additional context and on-the-ground insights.

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

Discussions on forums like Reddit and BiggerPockets provide valuable insights into how short-term rental hosts in Westchester County are navigating the complex regulatory landscape. Here are some key takeaways from these online communities:

On Reddit, a post in the r/airbnb_hosts subreddit titled "New town law: 30 day minimum" highlights the challenges Westchester hosts face with minimum stay requirements. The original poster shares that their town recently introduced a 30-day minimum, which doesn't work for their market where the average stay is 4-5 days. They are considering ignoring the rule but are concerned about steep penalties. Commenters suggest strategies like lobbying for exceptions for owner-occupied properties or only renting for 30+ days to comply.

Another Reddit thread in r/RealEstate discusses the potential impact of a country-wide ban on Airbnb and Vrbo. While most commenters agree short-term rentals are a small share of overall housing inventory, some note that widespread bans in a short timeframe could still affect local markets as hosts convert to long-term rentals or sell their properties. This could put downward pressure on rental and home prices until a new equilibrium is reached.

On BiggerPockets, a poster asks about the landlord-friendliness of Westchester compared to NYC. While there aren't many replies, the question itself suggests local hosts are concerned about navigating tenant-friendly regulations. In another BiggerPockets thread, a real estate agent seeks information on short-term rental laws in Westchester and Ulster counties before purchasing a property to avoid issues with Airbnb later. The lack of clear answers highlights the complexity of the regulatory environment.

Overall, these online discussions paint a picture of Westchester hosts struggling to adapt to evolving local regulations, especially around minimum stays and permitting. Many are uncertain about the specific rules in their town and fear penalties for non-compliance. At the same time, there is a recognition that short-term rentals are a small piece of a much larger housing affordability puzzle. Hosts are eager for clearer guidance and some are banding together to advocate for more balanced policies that preserve their ability to operate while addressing community concerns.

Disclaimer: While we here at BNBCalc strive to keep all of our 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 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.