East Stroudsburg, Pennsylvania Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in East Stroudsburg

East Stroudsburg, Pennsylvania, nestled in the heart of the Pocono Mountains, has become an increasingly popular destination for short-term rentals. However, operating an Airbnb or VRBO in this charming town comes with specific regulations and requirements that hosts must adhere to. Here's what you need to know about starting a short-term rental business in East Stroudsburg:

Licensing and Permits: Before you can operate a short-term rental in East Stroudsburg, you must obtain a Short-Term Rental License from the Code Enforcement Officer. This license is mandatory, and operating without one is a violation of local ordinances. The licensing process ensures that your property complies with local zoning laws and safety regulations.

Occupancy Limits: East Stroudsburg imposes strict occupancy limits for short-term rentals. The maximum overnight occupancy is limited to one family per dwelling unit. Additionally, the number of day guests allowed at any one time is capped at 75% of the maximum overnight occupancy. These limits are in place to prevent overcrowding and maintain the residential character of neighborhoods.

Parking Requirements: Adequate off-street parking is a crucial requirement for short-term rentals in East Stroudsburg. You must provide one off-street parking space per bedroom. This ensures that your guests' vehicles don't overcrowd local streets or cause inconvenience to neighbors.

Safety and Compliance: Short-term rental properties in East Stroudsburg must meet specific safety standards. This includes installing smoke detectors, fire extinguishers, and ensuring sturdy stairs. Regular inspections may be conducted to verify compliance with these safety requirements.

Starting a short-term rental business in East Stroudsburg can be a rewarding venture, especially given the area's popularity as a year-round destination. However, it's crucial to familiarize yourself with all local regulations and obtain the necessary permits before listing your property. By following these rules and being a responsible host, you can contribute positively to East Stroudsburg's tourism economy while maintaining good relationships with the local community.

Short-Term Rental Licensing Requirement in East Stroudsburg

To operate a short-term rental in East Stroudsburg, Pennsylvania, property owners must obtain a Short-Term Rental License from the Code Enforcement Officer. Here's a comprehensive list of requirements based on the official East Stroudsburg Borough ordinance:

Complete a Short-Term Rental License application, including:

• Owner's name, address, telephone number, and email address
• Name, address, and 24-hour telephone number of the managing agency, agent, or local contact person
• Total number of bedrooms and maximum number of overnight guests
• Diagram or photograph showing on-site parking spaces
• Septic system evaluation (if not on central sewer)
• Copies of Monroe County Hotel Room Excise Tax Certificate and Pennsylvania Sales and Use Tax Permit
• Trespass waiver allowing property access for inspections
• Copy of the current recorded deed
• Proof of at least $500,000 in general liability insurance
• Pay the required license fee (amount set by Borough Council resolution)
• Pass an annual inspection by the Code Enforcement Officer and Rental Housing Inspector
• Comply with all standards set forth in the ordinance, including:
• Occupancy limits
• Parking requirements
• Safety measures (smoke detectors, fire extinguishers, etc.)
• Noise regulations

To submit these requirements, property owners should contact the East Stroudsburg Borough Code Enforcement Officer. The license is valid for one year and must be renewed annually.

Regarding fees, while the exact amount is not specified in the provided search results, it's mentioned that fees are established by resolution of the Borough Council. Property owners should inquire about current fee amounts when applying.

The processing time for license applications is not explicitly stated in the search results. However, given the requirement for inspections, property owners should allow sufficient time for the application process and schedule inspections well in advance of intended rental dates.

Penalties for operating a short-term rental without a license in East Stroudsburg are significant. Violations of the ordinance can result in fines ranging from $100 to $1,000 per day for each violation. Each day that a violation continues is considered a separate offense. Additionally, the Borough may seek equitable relief, including injunctions, to enforce compliance.

It's crucial for property owners to obtain the proper license before offering their property as a short-term rental. Failure to do so not only risks substantial fines but also potential revocation of the ability to operate a short-term rental in the future. The Code Enforcement Officer has the authority to revoke or deny renewal of a Short-Term Rental License for three violations of the ordinance in any rolling twelve-month period.

Required Documents for East Stroudsburg Short-Term Rentals

To operate a short-term rental in East Stroudsburg, Pennsylvania, property owners must submit several essential documents as part of their Short-Term Rental License application. Here's a comprehensive list of the required documents along with explanations of their purpose:

Completed Short-Term Rental License Application

1. Purpose: To provide the borough with essential information about the property and its owner.
2. Where to get it: East Stroudsburg Borough office or website.

Floor Plans

1. Purpose: To illustrate the layout of the rental unit, including total habitable floor space and number of bedrooms.
2. Where to get it: Create yourself or hire a professional to draft.

Site Plan

1. Purpose: To show the location and number of on-site parking spaces.
2. Where to get it: Create yourself or hire a surveyor.

Septic System Evaluation (if not on central sewer)

1. Purpose: To ensure the property's sewage disposal system is functioning properly.
2. Where to get it: Licensed septic system inspector.

Monroe County Hotel Room Excise Tax Certificate

1. Purpose: To prove registration for collecting and remitting local hotel taxes.
2. Where to get it: Monroe County Treasurer's Office.

Pennsylvania Sales and Use Tax Permit

1. Purpose: To demonstrate registration for collecting and remitting state sales tax.
2. Where to get it: Pennsylvania Department of Revenue.

Trespass Waiver

1. Purpose: To allow property access for inspections by the Code Enforcement Officer and Rental Housing Inspector.
2. Where to get it: East Stroudsburg Borough office.

Current Recorded Deed

1. Purpose: To establish ownership of the property.
2. Where to get it: Monroe County Recorder of Deeds office.

Proof of No Delinquent Borough Fees

• Purpose: To show all borough water, sewer, and solid waste collection fees are current.
• Where to get it: East Stroudsburg Borough office.

Solid Waste Hauler Contract

• Purpose: To ensure proper waste management for the rental property.
• Where to get it: Local waste management companies.

Proof of No Delinquent Taxes

• Purpose: To demonstrate all Monroe County Hotel Room Excise Tax and Pennsylvania sales/use taxes are current.
• Where to get it: Monroe County Treasurer's Office and Pennsylvania Department of Revenue.

Certificate of Insurance

• Purpose: To prove general liability insurance coverage of at least $500,000 for the rental property.
• Where to get it: Your insurance provider.

Property Owners' Association Approval (if applicable)

• Purpose: To show compliance with any homeowners' association rules regarding short-term rentals.
• Where to get it: Your property owners' association.

These documents are crucial for obtaining a Short-Term Rental License in East Stroudsburg. They ensure that your property meets all local regulations, safety standards, and tax obligations. Remember that the Short-Term Rental License must be renewed annually, so it's important to keep these documents up to date.

East Stroudsburg Short-Term Rental Taxes

Operating a short-term rental in East Stroudsburg, Pennsylvania, comes with several tax obligations. Understanding these taxes is crucial for hosts to remain compliant and manage their finances effectively. Here's a breakdown of the taxes that apply to short-term rentals in East Stroudsburg:

Pennsylvania Hotel Occupancy Tax

Short-term rental operators in East Stroudsburg are required to collect and remit the Pennsylvania Hotel Occupancy Tax. This tax is set at 6% of the rental amount. It applies to all rentals of less than 30 consecutive days.

Monroe County Hotel Room Excise Tax

In addition to the state tax, East Stroudsburg, being part of Monroe County, imposes a Hotel Room Excise Tax. While the exact rate for East Stroudsburg is not specified in the search results, nearby Mount Pocono in Monroe County charges a 3% Hotel Excise Tax. It's likely that East Stroudsburg has a similar rate.

Pennsylvania Sales and Use Tax

Short-term rental hosts must also collect and remit Pennsylvania Sales and Use Tax. The current rate is 6%. This tax applies to the rental amount and any additional fees charged to guests.

Local Services Tax

East Stroudsburg may impose a Local Services Tax on individuals working within the municipality. While this doesn't directly apply to the rental income, hosts who manage their properties as a business may be subject to this tax.

Income Tax

Rental income is subject to both federal and Pennsylvania state income tax. The Pennsylvania personal income tax rate is currently 3.07%.

Possible Write-offs and Deductions

Short-term rental hosts in East Stroudsburg can take advantage of several deductions to reduce their taxable income:

• Depreciation: Hosts can deduct the cost of their rental property over time.
• Property taxes: Local property taxes paid on the rental property are deductible.
• Mortgage interest: Interest paid on a mortgage for the rental property can be deducted.
• Cleaning and maintenance: Expenses related to cleaning and maintaining the property between guests are deductible.
• Utilities: A portion of utility costs attributable to the rental can be deducted.
• Furnishings and supplies: Costs for furniture, linens, and other guest supplies are deductible.
• Insurance: Premiums paid for rental property insurance can be deducted.
• Professional fees: Costs for property management, accounting, or legal services related to the rental are deductible.
• Advertising and marketing: Expenses for promoting your rental can be written off.

It's important to note that if you use the property for personal purposes as well as short-term rentals, you'll need to allocate expenses between personal and rental use. Additionally, hosts should be aware of the 14-day rule: if you rent your property for 14 days or less in a year, you don't have to report the rental income, but you also can't deduct rental expenses.

Proper record-keeping is essential for maximizing deductions and ensuring compliance with tax laws. Hosts should consult with a tax professional familiar with short-term rental regulations to ensure they're taking advantage of all available deductions while remaining compliant with local, state, and federal tax laws.

Pennsylvania Wide Short-Term Rental Rules

While Pennsylvania does not have comprehensive state-wide legislation specifically targeting short-term rentals, there are several state-level requirements that affect East Stroudsburg hosts and short-term rental operators across the commonwealth:

Tax Obligations

Short-term rental hosts in Pennsylvania are required to collect and remit certain taxes:

• Pennsylvania Hotel Occupancy Tax: Hosts must collect a 6% tax on the rental amount for stays less than 30 consecutive days.
• Pennsylvania Sales and Use Tax: A 6% tax applies to the rental amount and any additional fees charged to guests.

Insurance Requirements

While not explicitly mandated by state law, many municipalities, including East Stroudsburg, require short-term rental operators to maintain liability insurance. East Stroudsburg, for example, mandates at least $500,000 in general liability insurance coverage for short-term rentals.

Accessibility and Safety Standards

Short-term rentals in Pennsylvania must comply with the Pennsylvania Uniform Construction Code. This may require:

• Smoke detectors in each bedroom and common areas
• Carbon monoxide detectors if the property has open flame heating or an attached garage
• Fire extinguishers in accessible locations
• Proper maintenance of stairs and walkways

Zoning Considerations

While zoning is primarily a local issue, Pennsylvania courts have ruled that short-term rentals may be subject to local zoning ordinances. This means that even if there's no state-wide zoning law for short-term rentals, local zoning regulations can significantly impact where and how short-term rentals can operate.

Third-Party Booking Agents

The Pennsylvania Department of Revenue has clarified that homeowners who exclusively use third-party booking platforms (like Airbnb or VRBO) for their rentals are not required to obtain a separate Sales, Use, and Hotel Occupancy Tax license. The booking platforms are responsible for collecting and remitting these taxes on behalf of the hosts.

Discrimination Laws

Short-term rental hosts in Pennsylvania must comply with state and federal anti-discrimination laws, which prohibit discrimination based on race, color, religion, national origin, sex, familial status, or disability.

While these state-wide rules provide a framework, it's crucial for East Stroudsburg hosts to remember that local regulations often impose additional, more specific requirements. Always consult with local authorities and consider seeking legal advice to ensure full compliance with all applicable laws and regulations.

Does East Stroudsburg Strictly Enforce STR Rules?

East Stroudsburg is generally considered to be Airbnb-friendly, with a relatively lenient approach to short-term rental regulations compared to other cities. While the borough does have specific rules and licensing requirements in place, enforcement appears to be less stringent than in many other locations.

Based on discussions from BiggerPockets and Reddit forums, it's evident that many hosts operate short-term rentals in East Stroudsburg despite the rules, often without facing significant consequences. One Reddit user mentioned that "Short-term rental regulation is lenient in East Stroudsburg. Very few Airbnb listing currently have put their license number on their Airbnb listing. This likely means the local government is not strictly enforcing the short-term rental-related regulations.”

However, it's important to note that this lax enforcement doesn't mean there are no rules at all. East Stroudsburg does require short-term rental operators to obtain a license and comply with certain regulations, such as occupancy limits and parking requirements. The borough has the authority to issue fines for violations, which can range from $100 to $1,000 per day for each violation.

Despite these potential penalties, many hosts seem to operate without strict adherence to all regulations. This is likely due to a combination of factors, including limited resources for enforcement and the economic benefits that short-term rentals bring to the area.

A real estate professional on BiggerPockets forum stated, "If you pick the right property and right location, it should absolutely be worth it. And you can do it without wreaking havoc on neighbors. Thoughtful planning and proper management wins the game.” This suggests that while rules exist, there's a degree of flexibility in how they're applied, especially for hosts who manage their properties responsibly.

In conclusion, while East Stroudsburg does have short-term rental regulations on the books, the city appears to take a more relaxed approach to enforcement compared to many other municipalities. This creates a relatively favorable environment for Airbnb hosts, though it's always advisable to operate within the bounds of local laws and regulations to avoid potential issues in the long run.

How to Start a Short-Term Rental Business in East Stroudsburg

Starting a short-term rental business in East Stroudsburg can be a rewarding venture. Here's a step-by-step guide to help you get started:

• Research the market: Analyze the East Stroudsburg short-term rental market. With 657 active rentals and an average daily rate of $406.60, there's potential for profit. You can use BNBCalc’s Airbnb calculator to get rental statistics for properties within your radar. Consider factors like seasonality, local attractions, and competition to determine if your property can stand out.
• Choose the right property: Select a property that meets East Stroudsburg's requirements. Ensure it's not within 500 feet of another short-term rental and has adequate off-street parking (one space per bedroom). Look for properties in areas zoned for short-term rentals.
• Form a business entity: Establish an LLC or corporation to protect your personal assets. This structure also provides tax benefits and adds credibility to your business.
• Obtain necessary licenses and permits: Apply for a Short-Term Rental License from the East Stroudsburg Code Enforcement Officer. You'll need to provide detailed information about your property, including floor plans, site plans, and proof of insurance.
• Secure required insurance: Obtain general liability insurance with at least $500,000 coverage. This is mandatory for operating a short-term rental in East Stroudsburg.
• Register for taxes: Register for the Monroe County Hotel Room Excise Tax and Pennsylvania Sales and Use Tax. You'll need to collect and remit these taxes on all bookings.
• Prepare your property: Ensure your property meets all safety standards, including installing smoke detectors, fire extinguishers, and maintaining proper waste management. Consider hiring a professional cleaning service to maintain high standards of cleanliness.
• Set up a solid management system: Decide whether to self-manage or hire a property management company. If self-managing, invest in software to handle bookings, guest communication, and financial tracking.
• Create an appealing listing: Craft a compelling listing with high-quality photos and detailed descriptions. Highlight unique features of your property and the attractions of East Stroudsburg to stand out in the market.
• Comply with ongoing requirements: Stay up-to-date with local regulations, renew your license annually, and schedule regular inspections. Maintain open communication with neighbors and promptly address any concerns to ensure smooth operations.

Remember, success in the short-term rental business requires dedication, attention to detail, and a commitment to providing excellent guest experiences. By following these steps and staying compliant with local regulations, you'll be well on your way to establishing a thriving short-term rental business in East Stroudsburg.

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

For inquiries about short-term rental regulations and zoning in East Stroudsburg, Pennsylvania, you should contact the following officials:

Zoning and Codes Enforcement Office

• Michael P. Manter, East Stroudsburg Borough Zoning Officer
• Phone: 570-977-2590
• Email: michael.manter@eaststroudsburgboro.org

The Zoning and Codes Enforcement Office is responsible for administering and enforcing zoning ordinances, including those related to short-term rentals. They can provide information on specific zoning requirements and the application process for short-term rental licenses.

Borough Manager's Office

1. Lawrence E. Kopp, Borough Manager
2. Phone: 570-421-5444
3. Email: lkopp@stroudsburgboro.com

While this contact information is for the neighboring Stroudsburg Borough, the Borough Manager's office can often provide guidance or direct you to the appropriate department for East Stroudsburg-specific inquiries.

Community Resources

For East Stroudsburg hosts looking to connect with other short-term rental operators or gain insights into the local market, consider joining these online communities:

1. BiggerPockets Forums: There are several threads discussing short-term rentals in the Poconos area, including East Stroudsburg. These forums can be valuable for networking and getting advice from experienced hosts.
2. Facebook Groups: While not specific to East Stroudsburg, there are large Facebook groups dedicated to short-term rental hosts. The "Airbnb Superhosts" group, with over 100,000 members, can be a great resource for general hosting advice and industry trends.
3. Reddit: The subreddit r/airbnb_hosts, while smaller than some Facebook groups, offers a platform for hosts to share experiences and ask questions. It's known for having helpful discussions with less conflict than some larger groups.

Remember that while online communities can provide valuable insights, always verify information with official sources, especially regarding local regulations and zoning laws. The East Stroudsburg Borough office should be your primary point of contact for official information and guidance on operating a short-term rental in the area.

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

Airbnb hosts in East Stroudsburg and the surrounding Poconos area have mixed opinions about local short-term rental regulations, as evidenced by discussions on Reddit and BiggerPockets forums. Here are some insights from hosts:

Regulatory Challenges:

A Reddit user in the r/Poconos subreddit expressed frustration with the new short-term rental ordinances in Monroe County, which includes East Stroudsburg. They stated, "Monroe County is shooting itself in the foot with the new short term rental ordinances which are unreasonably burdensome and costly, effectively getting as close to a ban on short term rentals as possible.” This sentiment reflects the challenges hosts face in complying with local regulations.

Permit Costs and Requirements:

On BiggerPockets, a user seeking advice about obtaining a short-term rental permit in nearby Tobyhanna Township highlighted the unexpected costs and requirements. They mentioned paying $650 for a septic system pump-out and inspection, only to face additional costs due to an undersized system. This experience suggests that hosts in the area, including East Stroudsburg, may encounter similar hurdles when seeking permits.

These insights from local hosts and residents reveal a complex landscape for short-term rentals in East Stroudsburg and the surrounding Poconos area. While some hosts are finding success, many are grappling with strict regulations, unexpected costs, and community pushback. Potential hosts should carefully consider these factors when entering the short-term rental market in East Stroudsburg.