Jim Thorpe, Pennsylvania Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Jim Thorpe

Starting a short-term rental business in Jim Thorpe, Pennsylvania, involves navigating a set of regulations designed to balance the economic benefits of tourism with the concerns of local residents. In 2021, Jim Thorpe Borough Council passed a comprehensive short-term rental ordinance that outlines specific requirements for owners.

• Zoning Restrictions: New short-term rentals are restricted to the C1, C2, C3, R4, and special zoning districts. Existing rentals are grandfathered in, but new ones must go through the borough's special exception process. If a property is outside these zones, owners need to obtain a variance.
• Parking Requirements: One parking space is required per bedroom in the rental unit, addressing long-standing parking issues in the area.
• Permitting and Registration: All short-term rental owners must register their properties within 90 days of the ordinance's adoption and renew their permits annually. This includes a change-of-use application with the borough.
• Occupancy Limits: Rentals are limited to two rooms, with no more than four people per room.
• Taxes: Hosts must collect and remit a 5% occupancy tax, in addition to state and county taxes.
• Enforcement: Violations can result in permit revocation, with penalties increasing from a three-month suspension for the first offense to permanent revocation for a third violation within three years.

Operating a short-term rental in Jim Thorpe requires careful adherence to local regulations, including zoning restrictions, parking requirements, and tax obligations. While these rules can present challenges, they also help ensure that the short-term rental market contributes positively to the local economy and community. As with any regulatory environment, staying informed about updates and changes is crucial for successful operation.

Short-Term Rental Licensing Requirement in Jim Thorpe

To operate a short-term rental in Jim Thorpe, Pennsylvania, property owners must comply with a comprehensive set of regulations. Here is a detailed list of the requirements based on official borough information:

Requirements for Short-Term Rental Licensing

1. Permit Application: Owners must submit a short-term rental permit application to the borough. This includes providing detailed information about the property, such as its location, number of bedrooms, and maximum occupancy.
2. Owner and Contact Information: The application must include the owner's name, address, phone number, and email. If the owner does not have a managing agency or local contact, they must provide a 24-hour contact number.
3. Property Photograph: A photograph of the rental property taken from the access road side is required.
4. Marketing Entity Identification: Owners must provide the marketing entity identification number for the short-term rental (e.g., Airbnb or VRBO listing number).
5. Bedroom Specifications: Each designated bedroom must contain a minimum of 80 square feet for one person and 120 square feet for two people.
6. Maximum Occupancy: The application must specify the maximum number of overnight occupants allowed.
7. Insurance: Owners must maintain at least $300,000 in general liability insurance for the full duration of their license term and provide proof to the borough.
8. Proof of Ownership: Owners must provide proof of ownership, such as a deed or tax bills.

Submission Process and Fees

1. Application Submission: The application and supporting documents must be submitted to the Jim Thorpe Borough office.
2. Fees: The exact fees for the application and inspection are determined by borough resolution. Typically, there is an application fee and potentially an inspection fee if required.
3. Processing Time: The processing time can vary, but generally, once all documentation is submitted correctly, the permit is issued relatively quickly.

Fines and Penalties

Operating a short-term rental without a license is a violation of borough ordinances. While specific fines are not detailed, violations typically result in civil enforcement proceedings with judgments that can include fines and court costs. The borough's ordinance also includes penalties for violations, such as permit revocation for repeated offenses. For instance, a first violation can result in a three-month permit revocation, a second violation within three years can lead to a one-year suspension, and a third violation can result in permanent revocation.

It is crucial for property owners to comply with these regulations to avoid penalties and ensure smooth operation of their short-term rentals.

Required Documents for Jim Thorpe Short-Term Rentals

To operate a short-term rental in Jim Thorpe, Pennsylvania, property owners must submit several documents as part of their application process. Here is a comprehensive list of the required documents along with explanations of their purpose and where to obtain them:

Short-Term Rental Permit Application:

1. Purpose: This is the primary application form for obtaining a short-term rental permit.
2. Where to Get It: Available from the Jim Thorpe Borough office or possibly downloadable from their official website.

Property Photograph:

1. Purpose: To visually identify the property from the roadside.
2. What to Submit: A clear photograph of the short-term rental taken from the access road side, including the visible street address.

Marketing Entity Identification Number:

1. Purpose: To link the property with its online rental listings.
2. What to Submit: The listing number(s) from platforms like Airbnb or VRBO where the property is advertised.

Proof of Ownership:

1. Purpose: To verify the owner's legal rights to the property.
2. What to Submit: A deed or recent tax bills.

Acknowledgment of Bedroom Specifications:

1. Purpose: To ensure compliance with minimum bedroom size requirements.
2. What to Submit: A statement acknowledging that each designated bedroom contains a minimum of 80 square feet for one person and 120 square feet for two people.

Maximum Occupancy Information:

1. Purpose: To determine the maximum number of overnight guests allowed.
2. What to Submit: A statement specifying the number of bedrooms and the calculated maximum occupancy.

Parking Diagram:

• Purpose: To ensure adequate off-street parking for guests.
• What to Submit: A diagram or photograph indicating the number and location of designated on-site parking spaces. The number of spaces must equal the number of bedrooms.

Sewage Disposal System Information:

• Purpose: To verify the adequacy of the property's sewage system.
• What to Submit: Details on the location, approximate age, and capacity of the sewage disposal system.

Contact Information:

• Purpose: To provide the borough with reliable contact information for the property.
• What to Submit: Full name, address, phone number, and email address for both the owner and a 24-hour contact person (if different from the owner).

Tax Compliance Documents:

• Purpose: To ensure all required taxes have been paid.
• What to Submit: Documentation showing no outstanding Carbon County Hotel Room Excise Tax or Pennsylvania Sales Tax for the preceding year.

911 Address Verification:

• Purpose: To ensure proper emergency response capabilities.
• What to Submit: Proof of compliance with the borough's 911 address signage requirements.

Short-Term Rental Identification Window Sign:

• Purpose: To visibly identify the property as a short-term rental.
• What to Submit: The sign provided by the Borough must be posted on a window clearly visible from the access road side of the short-term rental.

These documents are crucial for ensuring that short-term rentals in Jim Thorpe meet all local regulations and operate safely. Property owners should carefully prepare and submit all required documentation to avoid delays in the licensing process.

Jim Thorpe Short-Term Rental Taxes

Operating a short-term rental in Jim Thorpe, Pennsylvania, involves several tax obligations. Here's a breakdown of the taxes that typically apply to short-term rental businesses in the area:

Types of Taxes

Pennsylvania Hotel Occupancy Tax:

• Rate: 6% of the total rental income.
• Purpose: This tax applies to all short-term rentals, including those arranged through online platforms like Airbnb and VRBO. It is collected by the state and must be remitted by the property owner.

Local Taxes:

• Rate: In Jim Thorpe, there is a local occupancy tax of 5% on short-term rentals. This is in addition to any state taxes.
• Purpose: This tax is used to support local services and infrastructure.

Income Tax:

• Rate: Varies based on the owner's income tax bracket.
• Purpose: Income from short-term rentals is considered taxable income and must be reported on the owner's personal income tax return.

Possible Write-Offs or Deductions

Short-term rental owners can claim various deductions on their income tax returns to reduce their taxable income. These deductions may include:

• Mortgage Interest: Interest paid on the mortgage for the rental property can be deducted.
• Property Taxes: Local property taxes paid on the rental property are deductible.
• Operating Expenses: Expenses such as cleaning services, utilities, and property management fees can be deducted.
• Depreciation: The cost of the property and its furnishings can be depreciated over time, providing a significant tax benefit.

It's important for property owners to keep accurate records of these expenses to support their deductions during tax season. Consulting with a tax professional can help ensure compliance with all tax laws and maximize available deductions.

Pennsylvania Wide Short-Term Rental Rules

Pennsylvania has a mix of state-wide regulations and local ordinances that affect short-term rental hosts across the state, including those in Jim Thorpe. While there is no single, overarching state law governing short-term rentals, various municipalities have developed their own ordinances to manage these rentals. Here are some key state-wide considerations and local regulations that impact short-term rental operations:

State-Wide Considerations

1. Taxation: Pennsylvania requires short-term rental operators to pay a 6% state hotel occupancy tax. Additionally, local municipalities may impose their own occupancy taxes, such as the 5% tax in Jim Thorpe.
2. Sales and Use Tax: If a homeowner directly books rentals without using a third-party booking agent, they may need to obtain a Pennsylvania Sales, Use, and Hotel Occupancy Tax license. However, if bookings are made through platforms like Airbnb or VRBO, these platforms typically handle tax collection and remittance on behalf of the host.
3. Insurance and Liability: While not mandated by state law, many local ordinances require short-term rental owners to maintain liability insurance. For example, some municipalities require at least $500,000 in coverage.

For hosts in Jim Thorpe, understanding both state-wide tax obligations and local regulations is crucial. Compliance with Jim Thorpe's specific ordinances, such as zoning restrictions, parking requirements, and tax collection, is essential to avoid penalties and ensure a successful short-term rental business. Additionally, staying informed about any changes in state or local regulations can help hosts adapt and maintain compliance over time.

Does Jim Thorpe Strictly Enforce STR Rules? Is Jim Thorpe Airbnb Friendly?

Jim Thorpe, Pennsylvania, has implemented a comprehensive set of regulations for short-term rentals, indicating a structured approach to managing these businesses. The enforcement of these rules is strict enough to ensure compliance, with penalties for violations, such as permit revocation for repeated offenses. This suggests that Jim Thorpe is not overly permissive but rather seeks to balance the economic benefits of short-term rentals with community concerns.

The borough's ordinance includes specific requirements for zoning, parking, and licensing, which are enforced through a permit system. Violations can lead to fines and permit suspensions or revocations, demonstrating a commitment to enforcing these regulations. This level of enforcement indicates that Jim Thorpe is not lenient with non-compliance.

Compared to other cities, Jim Thorpe's approach is more restrictive than some but less so than others. For example, while it allows short-term rentals in designated zones, it requires a special exception process for new rentals outside these areas. This is more restrictive than some cities that have fewer zoning limitations but less restrictive than cities that ban short-term rentals entirely.

Jim Thorpe is not overly Airbnb-friendly compared to cities with minimal regulations but is more accommodating than those with strict bans. The borough's enforcement of its rules ensures that short-term rentals operate within established guidelines, which can be beneficial for maintaining community harmony and ensuring a sustainable tourism industry. Hosts who comply with these regulations can successfully operate in Jim Thorpe, but they must be diligent about meeting all legal requirements.

How to Start a Short-Term Rental Business in Jim Thorpe

Starting a short-term rental business in Jim Thorpe, Pennsylvania, requires careful planning and adherence to local regulations. Here is a step-by-step guide to help you get started:

1. Research Local Regulations: Understand Jim Thorpe's zoning laws, licensing requirements, and tax obligations. Familiarize yourself with the borough's short-term rental ordinance to ensure compliance.Consult with local authorities or a real estate attorney to clarify any questions about the regulations. Join local real estate forums or groups to stay updated on any changes.
2. Choose the Right Property: Select a property that is zoned for short-term rentals and meets local requirements such as parking and bedroom size standards. Consider properties in popular tourist areas but ensure they comply with local zoning restrictions. Evaluate the property's condition and potential for renovation to enhance its appeal.
3. Obtain Necessary Permits and Licenses: Apply for a short-term rental permit from the Jim Thorpe Borough office. Ensure you have all required documents, including proof of ownership and insurance.Submit your application well in advance to avoid delays. Be prepared to address any zoning or compliance issues that may arise during the process.
4. Prepare the Property: Renovate and furnish the property to meet the standards expected by short-term rental guests. Ensure all amenities are in good working condition. Invest in quality furnishings and appliances. Consider hiring a professional cleaner and property manager to maintain the property between bookings.
5. Set Up Accounting and Tax Systems: Establish a system for tracking income and expenses. Ensure you are collecting and remitting all required taxes, including state and local occupancy taxes.Consult with an accountant to set up a separate business entity for your rental income. Use accounting software to streamline financial management and tax preparation.
6. Create a Listing on Booking Platforms: List your property on platforms like Airbnb or VRBO. Write a compelling description and include high-quality photos to attract guests. Optimize your listing with relevant keywords and set competitive pricing based on local market rates. Respond promptly to inquiries and maintain a high response rate to improve visibility.
7. Develop a Guest Management Strategy: Establish clear house rules and communicate them effectively to guests. Consider hiring a property management service to handle guest inquiries and issues. Set clear expectations for guest behavior and provide a comprehensive guide to the property and local area. Encourage guests to leave reviews to improve your listing's credibility.
8. Monitor and Adjust: Continuously monitor your business's performance, including occupancy rates and guest feedback. Adjust your strategies as needed to improve profitability and guest satisfaction. Use analytics tools provided by booking platforms to track performance metrics. Stay engaged with your guests and respond to feedback to maintain a high rating and attract repeat business.

By following these steps and staying informed about local regulations, you can successfully launch and manage a short-term rental business in Jim Thorpe.

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

For inquiries about short-term rental regulations and zoning in Jim Thorpe, Pennsylvania, hosts can contact the following resources:

Jim Thorpe Borough Office

1. Address: Jim Thorpe Borough Office, 101 E. 10th St., Jim Thorpe, PA 18229
2. Phone: (570) 325-3025
3. Fax: 570-325-8154

Borough Code Official: Todd Meltsch

Phone: (570) 894-2801

Zoning Officer: Sandra Salaski

Phone: 918-260-2889

Local Real Estate and Community Groups

Poconos Subreddit (r/Poconos): This online community often discusses short-term rental topics and local regulations. It can be a valuable resource for connecting with other hosts and staying informed about local issues.

BiggerPockets Forums: The "Short-Term & Vacation Rental Discussions" section on BiggerPockets often features threads about Pennsylvania short-term rentals, including discussions about regulations in various townships.

Local Real Estate Investment Groups: Joining local real estate investment associations in the Poconos area can provide networking opportunities and insights into navigating local short-term rental regulations.

These contacts and resources can help hosts navigate the regulatory landscape in Jim Thorpe and ensure compliance with local ordinances.

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

While specific discussions about Jim Thorpe's regulations on platforms like Reddit and Bigger Pockets are limited, nearby areas in the Poconos region provide valuable insights into how hosts perceive local regulations. Here are a few relevant sources and experiences:

1. Parking Challenges in Jim Thorpe: A BiggerPockets user shared their experience with parking challenges in Jim Thorpe. They noted the difficulty in securing off-site parking spaces to comply with local regulations, highlighting the need for creative solutions such as leasing parking spots from neighbors.
2. Penn Forest Township Discussions: On Reddit and BiggerPockets, hosts in nearby Penn Forest Township have discussed their experiences with local regulations. Many view the township as relatively Airbnb-friendly, with balanced regulations that allow for successful operation of short-term rentals. However, some hosts express frustration with the costs associated with permits and insurance.

These discussions highlight the importance of staying informed about local regulations and adapting to the unique challenges and opportunities in each area. While Jim Thorpe itself may not have extensive online discussions, the experiences of nearby areas provide valuable insights for hosts navigating similar regulatory environments