Hempstead Town Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Hempstead Town

The Town of Hempstead in Nassau County, New York, has strict regulations on short-term rentals like Airbnb and VRBO. In 2017, the town board voted unanimously to amend the town code and restrict residential property rentals to a minimum of 28 days. The town also established a residential property rental permit and registry program that requires property inspections to ensure compliance with fire safety, zoning, and building codes.

Under the new rules, those who register a short-term rental are charged a fee of $500 for the initial two-year permit and a $200 renewal fee thereafter, with an additional $200 fee for each rental unit on the property. The law prohibits listing properties for short-term rental or as "transient rentals." The town's building department monitors short-term rental sites and listings to uncover violations.

Residents have complained that the influx of short-term renters, especially in beach communities like Point Lookout and Lido Beach, has led to problems like loud parties, and parking issues, and is threatening to change the character of residential neighborhoods. However, some homeowners argue the law hurts people who need extra income to afford high property taxes. One resident said "In my house, I am paying over $10,000 a year in taxes. It makes no sense for me not to be able to rent out one or two rooms in the house, to get some extra income."

The Town of Hempstead code states that no rental occupancy permit shall be issued unless the property is in full compliance with all provisions of the town code, building zone ordinance, state fire prevention and building code, and county and state laws. The building commissioner may deny a permit if there are any existing violations related to the safe use and occupancy of the property.

Homeowners on Long Island forums have shared stories of receiving violation notices and fines from the town for operating short-term rentals without a permit. One new homeowner in Hempstead said they finished their basement to add a rental unit, only to find out from the town that the basement was illegally finished with no permits on file, and that short-term rentals under 28 days were prohibited. They were told to cease rentals immediately or face fines of up to $10,000.

So, in summary, while short-term rentals can provide extra income for homeowners, Hempstead Town has decided to prioritize preserving the residential character of neighborhoods by heavily restricting Airbnb and VRBO type rentals under 28 days. Getting a town rental permit, which requires bringing the property up to code, is the only legal way to do short-term renting. With high permit fees and active enforcement, town officials have made it very difficult and risky to casually rent out rooms or illegal accessory units on a short-term basis.

Short-Term Rental Licensing Requirement in Hempstead Town

In 2017, the Town of Hempstead passed a law prohibiting short-term rentals under 28 days and establishing a rental permit and registry program. Under the new rules, all residential rental properties, regardless of the length of the lease, are required to obtain a rental occupancy permit from the town's building department.

To get a rental permit, property owners must submit an application with a $500 fee for an initial two-year permit, plus an additional $200 for each rental unit on the property. Permit renewal fees are $450 for the first unit and $200 for each additional unit. The application requires detailed information about the property owner, the rental dwelling, and certifications that the property is in full compliance with all town codes and regulations.

The law states that no rental occupancy permit shall be issued unless the property is in full compliance with all provisions of the town code, building zone ordinance, state fire prevention and building code, and county and state laws. The building commissioner may deny a permit if there are any existing violations related to the safe occupancy of the property. Properties with outstanding violations must remedy all issues before being eligible for a rental permit.

Rental permits are issued for a period of two years and are non-transferable. If a rental property is sold, the new owner must apply for a new permit within 30 days. Failure to obtain or renew a required rental permit can result in enforcement action and fines of up to $10,000.

The stated purpose of the rental permit program is to identify and track rental housing in the town and ensure properties meet all health and safety codes. However, critics argue the law unfairly targets short-term rentals and imposes burdensome fees and requirements on property owners who rely on rental income. Some residents have complained that the permit process is overly complex, the building department is backlogged, and approvals are delayed.

Despite the controversy, the rental permit requirement remains in effect for all residential rentals in the unincorporated areas of Hempstead Town. Property owners must carefully review the application requirements and ensure their properties are fully compliant before attempting to rent them out, or risk significant penalties. The law has undoubtedly made it more difficult and expensive to engage in short-term renting in particular.

Required Documents for Hempstead Town Short-Term Rentals

Property owners must submit a completed application along with several required documents to apply for a short-term rental permit in the Town of Hempstead. The application form can be obtained from the town's building department website or office.

One of the key documents is proof of ownership of the rental property, such as a copy of the deed or tax bill. If the applicant is not the property owner, they must provide written authorization from the owner to apply for the permit.

Applicants must also submit a detailed site plan or survey of the property showing the location and dimensions of the rental unit, parking spaces, and any outdoor areas accessible to guests. A floor plan of the rental unit is required, with each room clearly labeled and indicating any proposed changes or renovations.

To demonstrate compliance with fire safety regulations, applicants need to provide certificates of occupancy, smoke and carbon monoxide detector affidavits, and fire escape window affidavits for each sleeping area. Proof of sufficient liability insurance coverage for short-term rental use is also mandatory.

The application requires the name and contact information of the property owner and any authorized agents or property managers responsible for the rental. If the owner lives outside of Nassau County, they must designate a local contact person to respond to any issues.

Applicants must sign an affidavit certifying that all information provided is true and accurate, and that the property complies with all applicable town, county, and state laws, ordinances, and regulations. Any false statements can result in permit denial, fines, and legal action.

Finally, the application must be accompanied by the required permit fees, which include $500 for the initial two-year permit and $200 for each additional rental unit on the property. Renewal fees are $450 for the first unit and $200 for each additional unit.

The Town of Hempstead building department carefully reviews each short-term rental permit application and conducts an on-site inspection of the property before issuing a permit. Incomplete applications or properties with outstanding violations will be denied. Once issued, the rental permit must be prominently displayed inside the rental unit.

So, in summary, obtaining a short-term rental permit in Hempstead Town involves submitting a thorough application package with supporting documents to demonstrate ownership, compliance with safety codes, and adequate insurance and local contacts. The town's strict requirements aim to ensure rental properties meet standards to protect renters, owners, and the community.

Hempstead Town Short-Term Rental Taxes

In addition to the strict regulations on short-term rentals, Hempstead Town also imposes taxes on any permitted rentals under 29 days. Short-term rental operators are required to collect and remit several state and local taxes.

At the state level, New York imposes a 4% sales tax and a 5% occupancy tax on short-term rentals, for a combined tax rate of 9%. Nassau County, where Hempstead is located, levies an additional 4.25% sales tax. So, the total state and county tax rate on short-term rentals in Hempstead is 13.25%.

On top of the state and county taxes, the Town of Hempstead charges its own 3% hotel/motel occupancy tax on all rentals under 29 days. This brings the total tax rate for short-term rentals in Hempstead to 16.25%.

Short-term rental hosts are responsible for registering with the appropriate state and local tax authorities, and collecting and remitting the taxes monthly or quarterly, depending on the amount of tax collected. Failure to comply with the tax requirements can result in penalties and interest charges.

The high tax rates, strict regulations, and permitting requirements make operating a short-term rental in Hempstead Town challenging and costly. Hosts must carefully consider all the compliance obligations and weigh them against the potential rental income before deciding to engage in short-term renting.

It's important to note that the tax rules for short-term rentals are complex and subject to change. Hosts should consult with a local tax professional to ensure they are meeting all their tax obligations. The town and state tax authorities also provide guidance and resources for short-term rental operators to help them navigate the tax requirements.

Overall, the layers of state, county, and town taxes imposed on short-term rentals in Hempstead reflect the local government's efforts to closely regulate and derive revenue from the growing vacation rental industry. For hosts, the taxes represent a significant expense that must be factored into the costs of running a short-term rental business in the town.

New York Wide Short-Term Rental Rules

While New York City has some of the strictest short-term rental regulations in the state, there are also statewide laws that apply to Airbnb and other vacation rental platforms. The New York State Multiple Dwelling Law is the primary legislation governing short-term rentals across the state.

Under the Multiple Dwelling Law, buildings with three or more units are considered "Class A" multiple dwellings and are intended for permanent residency only. This means that renting out an entire apartment for less than 30 days is prohibited in these buildings, unless the permanent tenant is present during the guest's stay.

The law does make an exception for "Class B" multiple dwellings, which include hotels, hostels, rooming houses and bed and breakfasts. These types of accommodations are specifically zoned and approved for short-term transient occupancy.

Another key aspect of the statewide short-term rental laws relates to taxation. New York State defines short-term rentals as stays of fewer than 90 consecutive days for tax purposes. Hosts are required to collect and remit state sales tax, New York City hotel room occupancy tax, and other local taxes as applicable.

It's important to note that while the state sets the overall framework, many cities and towns have their own additional short-term rental regulations. For example, Suffolk County requires short-term rental properties to be registered and licensed, with violations subject to fines. The city of Buffalo also has a permit requirement and charges different fees for owner-occupied vs. non-owner-occupied short-term rentals.

So, in summary, the New York State Multiple Dwelling Law prohibits short-term rentals under 30 days in most apartment buildings, unless the host is present. Hotels and legitimate B&Bs are exempt. Hosts must also comply with state and local tax collection requirements. However, many local governments impose additional registration, licensing and zoning rules on top of the state regulations. Hosts need to carefully research all state and local laws before listing their property on sites like Airbnb to avoid violations and penalties.

Does Hempstead Town Strictly Enforce STR Rules?

Based on discussions in online forums like Reddit and BiggerPockets, it appears that the Town of Hempstead actively enforces its strict short-term rental regulations. Many hosts and homeowners have shared stories of receiving violation notices and hefty fines from the town for operating unlicensed Airbnbs or other short-term rentals.

One Hempstead resident on Reddit said they listed their spare rooms on Airbnb to help cover their mortgage, but after a guest accidentally set off their security alarm, the fire department reported the property to the town as an illegal short-term rental. The homeowner was hit with a $500 citation and told to cease rentals immediately or face fines up to $10,000.

Another new homeowner in Hempstead shared on BiggerPockets that they finished their basement to add a rental unit, only to receive a violation letter from the town stating the basement was illegally converted with no permits, and that short-term rentals under 28 days were prohibited. They were ordered to remove the listing and stop renting or be subject to severe penalties.

Compared to other cities and towns on Long Island, Hempstead seems to be one of the least Airbnb-friendly. While some areas allow short-term renting with few restrictions, Hempstead has taken a firm stance against the practice in an effort to preserve the residential character of its neighborhoods. The town's requirement for STR permits, which come with high fees and rigorous inspections, has made casual hosting nearly impossible.

So, while some hosts are likely still operating STRs under the radar in Hempstead, the general consensus is that it's very risky and difficult. The town's aggressive enforcement, steep fines, and permit hurdles have pushed many would-be hosts to abandon the idea. The town's strict policies have been very disruptive for those who rely on STR income.

How to Start a Short-Term Rental Business in Hempstead Town

Unfortunately, starting a short-term rental business in the Town of Hempstead is not currently possible due to the town's strict regulations prohibiting rentals under 28 days. In 2017, the Hempstead Town Board unanimously passed legislation banning short-term rentals and establishing a rental registry and permit system.

Here are the key steps an aspiring short-term rental host in Hempstead would need to follow, though this path is currently blocked:

• Review the town's short-term rental laws and zoning regulations carefully. Understand that rentals under 28 days are prohibited in all unincorporated areas of Hempstead Town.
• If you believe your property is grandfathered or meets a legal exception, consult with a local land use attorney to assess your options. Virtually all short-term rentals are currently illegal.
• If you are eligible to rent your property based on the 28 day minimum, apply for a Hempstead Town Rental Registration permit. This involves:
• Submitting a completed application with a $500 fee for an initial two-year permit, plus $200 for each additional rental unit. Renewal fees are $450 plus $200 per unit.
• Provide proof of ownership, property surveys, floor plans, and compliance with all building and fire safety codes.
• Agreeing to property inspections to verify the unit meets town requirements.
• Wait for the town Building Department to review and approve your rental permit application. Inspectors will visit the property to check for any violations that need to be remedied before issuing a permit.
• Once you have a valid permit, create your rental listing, screening process, lease agreements, and welcome materials in compliance with the town's 28 day minimum rental term. You cannot advertise or list your property anywhere without a permit number.
• Begin marketing your rental property through compliant channels, screening tenants, and using a town-approved lease. The town actively monitors short-term rental sites for illegal listings.
• Collect and remit all required occupancy taxes. Hempstead imposes a 3% hotel/motel tax on all short-term rentals, the 4% state sales tax, and 4.25% Nassau County sales tax.
• Maintain active compliance with town rental regulations, responding promptly to any issues or neighbor complaints. Fines for violations start at $1000 and can quickly escalate. Your permit can be revoked for repeated violations.

In summary, the Town of Hempstead has intentionally made starting a short-term rental business within its boundaries extremely difficult and risky. The town's strict laws aim to prevent the proliferation of Airbnb-type rentals in residential areas in order to preserve neighborhood character and quality of life. While some hosts attempt to skirt the rules, the town's active enforcement and steep penalties pose major barriers. For now, the short-term rental business is virtually non-existent in Hempstead Town.

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

If you have questions about short-term rental regulations or zoning in the Town of Hempstead, there are several key contacts and departments you should reach out to:

Hempstead Building Department - This department is responsible for enforcing the town's building codes, rental registration requirements, and zoning ordinances. You can contact them at:

Phone: 516-538-8500
Building Inspectors direct line (8:30am-10am): 516-812-3088
Housing & Zoning Inspectors (9am-10:30am): 516-812-3052
Address: One Washington Street, 2nd Floor, Hempstead, NY 11550
Hours: 8am to 4:45pm

Hempstead Board of Zoning Appeals - If you need to apply for a zoning variance or special exception related to short-term rentals, contact the Board of Zoning Appeals. Their administrator Ashley Zeigler-Fletcher can be reached at 516-478-6201.

Hempstead Town Board - As the town's legislative body, the Town Board passed the short-term rental ban in 2017. To voice concerns or opinions on the law, you can speak at a Town Board meeting during public comment or contact the Town Supervisor's office at 516-489-5000.

Hempstead Department of Planning & Economic Development - For questions on how short-term rental zoning relates to the town's overall planning and development goals, contact this department at 516-812-3240.

Before contacting any department, reviewing the town code sections relating to short-term rentals and zoning is a good idea. Chapter 99 of the Hempstead Town Code outlines the rental permit requirements. The Building Zone Ordinance contains the detailed zoning district regulations.

If you are unsure which department to contact, start with the Building Department, as they handle enforcement of the short-term rental ban and can direct you to the appropriate personnel. Have your property address and any relevant permit or case numbers ready when you call to help them assist you faster.

By contacting the right town officials, you can get the most accurate and up-to-date information on short-term rental policies in Hempstead. The town makes an effort to respond promptly to resident inquiries and complaints on these issues.

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

Based on discussions from Airbnb hosts on Reddit and Bigger Pockets forums, there is a lot of frustration and concern about the strict short-term rental regulations in Hempstead Town. Many feel the laws are overly restrictive and make it nearly impossible to operate a profitable Airbnb. Here are some key takeaways:

Reddit user donnyjay23 shared his experience as a new Airbnb host in Hempstead. After successfully renting out rooms in his home for a year, averaging $4k per month, a false fire alarm notified the town that he was operating an illegal short-term rental. He was hit with a $500 fine and a cease and desist order threatening penalties of up to $10k. The host felt unfairly criminalized, as Airbnb was legal when he started.

On the Bigger Pockets forums, Ryan Cleary asked about purchasing a multi-family in Hempstead to use for short-term renting, unaware of the town's 2017 ban on rentals under 28 days. Commenters quickly informed him that STRs are not allowed in Hempstead and that he would face stiff fines for violating the law. They suggested he look into whether a bed and breakfast would be permitted instead.

Another Bigger Pockets thread discussed the challenges of investing in short-term rentals as local laws rapidly change. The original poster noted how Hempstead and other towns are cracking down and forcing STRs into limited, expensive pockets. Hosts lamented how difficult it has become to find areas that allow Airbnb without burdensome restrictions.

Reddit user il-liba posted about a new local law requiring a 30-day minimum rental term. As a successful Airbnb host with a property optimized for short stays, he was considering ignoring the rule, a risky gamble many hosts weigh when faced with bans. With expensive fines starting at $3k, he felt his only option was to switch to less profitable long-term tenants.

Overall, there is a sense that Hempstead Town has declared war on Airbnb, making it an incredibly difficult place to be a short-term rental host. Hosts feel attacked and unfairly vilified for what they see as a way to earn extra income from their biggest asset. While some consider operating under the radar, most agree the penalties are too steep. The strict laws have forced hosts to either shut down, sell, or convert to long-term rentals, which many find financially unviable compared to Airbnb revenue.

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.