Lehigh County, Pennsylvania Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Lehigh County, Pennsylvania?

Short-term rental regulations in Lehigh County, Pennsylvania vary by municipality. It's important for hosts to research the specific rules in their area before listing a property on Airbnb, VRBO, or other platforms. Zoning codes, planning codes, and local ordinances often dictate if and how short-term rentals can operate.

Starting a Short-Term Rental Business in Lehigh County

To start a short-term rental business in Lehigh County, hosts must navigate a patchwork of regulations that differ across the county's cities, boroughs, and townships:

• In Allentown, the county's largest city, hosts must obtain a permit, pay a yearly fee, and register guest details with the city. Enforcement of short-term rental rules appears to be strict compared to other areas, with significant penalties possible for violations.
• Lehigh Township has more restrictive zoning for short-term rentals. They are only allowed in properties located in general commercial areas, require permits, and have other restrictions. No variances for short-term rental use of single-family homes have been issued.
• Lehighton Borough currently has no zoning or licensing restrictions on short-term rentals, and there is an active short-term rental market.
• Other areas like Washington Township are largely silent on the issue, with outdated zoning regulations that don't address short-term rentals. No licensing is required for residential rentals.

To obtain a short-term rental license in areas that allow them, property owners must typically submit an application with information such as:

1. Owner name and contact details
2. Floor plans showing habitable space and bedrooms
3. Site plan with parking spaces
4. Proof of hotel tax and sales tax registration
5. Deed demonstrating ownership

Licenses are issued to the property owner and must be renewed annually. Owners grant permission for township inspections as a condition of the license.

In general, aspiring Airbnb hosts in Lehigh County must carefully research the regulations in their specific municipality. Zoning permission, permits, licenses, safety requirements, taxes, and insurance should all be considered. Reddit and Bigger Pockets users report frustration dealing with regulatory hurdles in some areas of the county.

For questions on short-term rental rules and zoning, hosts can contact their local township or borough offices. The Pocono Mountains Visitors Bureau may also provide guidance. With proper due diligence, short-term rentals can be operated successfully in parts of Lehigh County.

Short-Term Rental Licensing Requirement in Lehigh County

Lehigh County itself does not have a unified short-term rental licensing process. Instead, requirements vary by municipality within the county. Hosts must research the specific regulations in their township, borough, or city.

For example, in Lehigh Township (Northampton County), short-term rentals are only permitted in certain commercial zoning districts and require a special exception from the Zoning Hearing Board. Applicants must submit:

1. Owner name and contact information
2. Floor plans showing habitable space and bedrooms
3. Site plan with parking spaces
4. Sewage disposal system details if not on public sewer
5. Proof of hotel tax and sales tax registration
6. Deed demonstrating ownership

Licenses are issued to the owner and are valid for one year. Renewal is required annually or whenever rental conditions change. By applying for and accepting a license, owners grant permission for township inspections of the rental property.

In contrast, Lehighton Borough currently has no specific zoning or licensing restrictions on short-term rentals. There is an active short-term rental market operating in the borough.

Other areas like Washington Township have outdated zoning codes that do not address short-term rentals at all. No rental licenses of any kind are required.

Where licenses are required, application fees may apply. For example, Lansford Borough charges $100 per year for a residential rental license, which covers short-term rentals. Inspections are required every 2 years.

Fines and penalties for operating without a required license vary by municipality. Specifics are often outlined in the local short-term rental ordinance. In general, violations of any provision can incur fines of around $500 per day.

The licensing process timeline depends on the municipality and completeness of the application. Special approvals like zoning variances will extend the timeline. Hosts should begin the process well in advance of planned rental activity.

To determine short-term rental license requirements and procedures, contact the zoning, planning, or administration offices in your specific township, borough, or city. Consult the local code or ordinances for details on fees, fines, and penalties. Allow ample time for the licensing process before beginning to rent to guests.

Required Documents for Lehigh County Short-Term Rentals

The specific documents required to operate a short-term rental in Lehigh County vary by municipality. However, based on the Lehigh Township short-term rental ordinance, hosts typically need to submit the following when applying for a license:

1. Completed Application: Fill out the short-term rental license application form provided by the township. This will include basic information about the owner, property, and rental unit.
2. Proof of Ownership: Submit a copy of the current deed for the property to establish proof of ownership. The license can only be issued to the property owner.
3. Floor Plans: Provide detailed floor plans for the short-term rental unit that show the habitable space and total number of bedrooms. This helps determine maximum occupancy limits.
4. Site Plan: Include a site plan that shows the location and number of on-site parking spaces for guests. If the property is not on a central sewer system, also show the location, approximate age, and capacity of the sewage disposal system.
5. Tax Documents: Submit copies of the current Northampton County Hotel Room Excise Tax Certificate and Pennsylvania Sales Tax license. Short-term rentals must be properly registered to collect and remit these taxes.
6. Signatures: The license application must be signed by both the property owner and the local managing agency, agent, or contact person.

Some townships may have additional requirements, such as proof of liability insurance, safety inspection certificates, or zoning permits. It's important for hosts to contact their local township office to confirm the exact documents needed to legally operate a short-term rental.

The application and required documents are typically submitted in-person or by mail to the township zoning department or code enforcement office. Fees vary but are often around $200-300 for an annual license. Processing times also differ by township but may take several weeks.

By carefully compiling these required documents and working closely with local officials, short-term rental owners in Lehigh County can obtain the necessary license to operate legally and avoid fines or penalties. Consulting with a local lawyer well-versed in short-term rental regulations may also be advisable.

Lehigh County Short-Term Rental Taxes

Short-term rental hosts in Lehigh County must collect and remit several types of taxes on their rental income. Understanding these tax obligations is crucial for operating a compliant and successful Airbnb or VRBO business.

1. Pennsylvania Hotel Occupancy Tax (6%): The state of Pennsylvania imposes a 6% hotel occupancy tax on all short-term rentals less than 30 days in duration. Hosts are responsible for adding this tax to the cost of each booking and remitting the collected taxes to the Pennsylvania Department of Revenue on a monthly basis.
2. Pennsylvania State Sales Tax (6%): In addition to the hotel occupancy tax, short-term rental hosts in Pennsylvania must collect the 6% state sales tax on all rental transactions. This tax is also filed and paid monthly to the Department of Revenue.
3. Lehigh County Hotel Room Rental Tax (4%): Lehigh County charges a 4% hotel room rental tax on all short-term stays under 30 days. Hosts must collect this tax from guests as part of the booking cost and remit it to the county treasurer's office monthly.
4. Local Sales Tax (1%): The state also administers a 1% local sales tax in Lehigh County that applies to short-term rentals. This tax is collected in addition to the state sales tax and remitted to the Department of Revenue.

In total, short-term rental hosts in Lehigh County must collect and pay 17% in taxes on their rental income - 6% for the state hotel occupancy tax, 6% for the state sales tax, 4% for the Lehigh County hotel tax, and 1% for the local sales tax.

Hosts who fail to comply with these tax laws may face penalties, interest, and legal action from the state and county. It's essential to maintain accurate records, collect the proper taxes, and file and pay them on time each month.

Tax Deductions and Write-Offs: Short-term rental hosts can deduct many of their business expenses to reduce their taxable income. Eligible write-offs may include:

1. Mortgage interest and property taxes
2. Rental unit utilities, maintenance, and repairs
3. Cleaning and laundry services
4. Supplies like linens, toiletries, and coffee
5. Booking and payment processing fees
6. Advertising and marketing costs
7. Depreciation on furniture and equipment

Hosts should track all rental-related expenses throughout the year and consult a tax professional to ensure they are claiming all allowable deductions on their federal and state income tax returns. Careful tax planning can significantly reduce hosts' overall tax burden from their short-term rental business.

Pennsylvania Wide Short-Term Rental Rules

While Pennsylvania does not have statewide laws specifically regulating short-term rentals, there are some relevant regulations Lehigh County hosts should understand:

Taxes: The state charges a 6% sales tax and 6% hotel occupancy tax on short-term rental bookings. Lehigh County charges an additional 4% hotel room rental tax, and there is a 1% local sales tax administered by the state, for a total of 17% in taxes that must be collected and remitted by hosts.

Zoning: Local zoning codes determine if short-term rentals are permitted in specific areas. Residential zones often prohibit rentals under 30 days, which would be considered commercial activity. Hosts must check their local zoning rules before listing a property.

Safety: Statewide building codes require smoke detectors, fire extinguishers, safe electrical systems, and adequate means of egress. Short-term rentals must comply with these codes and may be subject to inspections in some areas.

Discrimination: Federal and state fair housing laws apply to short-term rentals. Hosts cannot discriminate against guests based on race, gender, religion, national origin, disability, or other protected characteristics.

Insurance: Hosts should carry robust liability insurance in case a guest is injured on the property. Umbrella policies can provide additional protection against potential lawsuits stemming from short-term rental activity.

In addition to specific local regulations, Lehigh County short-term rental hosts must ensure their property is properly zoned, collect and pay all applicable taxes, meet building safety standards, operate in a non-discriminatory manner, and maintain adequate insurance coverage. Consulting state and local government resources can help hosts stay compliant, and professional legal or tax advice may be warranted for unique situations.

Does Lehigh County Strictly Enforce STR Rules?

Based on discussions among Airbnb hosts on Reddit and Bigger Pockets, it appears that Lehigh County's enforcement of short-term rental regulations varies significantly by municipality. Some areas are quite strict, while others are more lax or have no specific rules at all.

Allentown, the county's largest city, seems to take enforcement seriously compared to other areas. Reddit users report that Allentown has stiff penalties for violations and actively monitors compliance. Hosts express frustration navigating the city's regulatory hurdles on Bigger Pockets.

In contrast, Lehighton Borough currently has no restrictions on short-term rentals. Hosts operate freely there without any special permits or licenses required. It's considered a very Airbnb-friendly area.

Other municipalities like Lehigh Township and North Whitehall Township fall somewhere in between. They allow short-term rentals in certain zoning districts with special approvals, but prohibit them in purely residential areas. Enforcement seems inconsistent.

Overall, Lehigh County is a mixed bag for Airbnb hosts. While some hosts do operate under the radar in areas with restrictions, they risk fines and penalties if caught. The county as a whole is not particularly Airbnb-friendly, though pockets of opportunity exist.

Prospective hosts should carefully research the specific rules in their municipality before listing a property. Consulting with local officials and other hosts can provide clarity on how strictly rules are enforced in practice. Following all regulations, even if not consistently enforced, is the safest approach.

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

Starting a short-term rental business in Lehigh County requires careful planning and execution. Here's a step-by-step guide to help you get started:

1. Research local regulations: Before listing your property, thoroughly research the short-term rental regulations in your specific municipality within Lehigh County. Zoning laws, permit requirements, occupancy limits, and safety codes vary widely. Contact your local township or borough office for guidance.
2. Obtain necessary permits and licenses: Once you understand the rules, obtain any required permits or licenses for legal operation. This may include a rental license, zoning permit, or special exception. Prepare to submit documents like floor plans, site plans, deed, and proof of insurance. Budget for application and renewal fees.
3. Prepare your property: Ensure your rental property is safe, clean, and well-maintained. Make any necessary repairs or upgrades. Invest in durable, comfortable furniture and high-quality mattresses. Consider hiring a professional photographer to showcase your property's best features in your listing.
4. Set up your listing: Create an attractive, detailed listing on popular short-term rental platforms like Airbnb and VRBO. Highlight your property's unique selling points, amenities, and local attractions. Be transparent about any rules or restrictions. Set competitive rates based on comparable properties in your area.
5. Automate your operations: Utilize vacation rental software to streamline tasks like booking management, communication, cleaning coordination, and pricing optimization. This will save you time and help you provide a seamless experience for your guests.
6. Provide excellent customer service: Respond promptly to inquiries and booking requests. Offer helpful local recommendations. Ensure your property is clean and well-stocked for each guest. Address any issues quickly and professionally. Encourage satisfied guests to leave positive reviews, which will attract more bookings.
7. Comply with tax obligations: Short-term rentals in Pennsylvania are subject to state and local taxes, totaling around 11% in Lehigh County. Register to collect and remit the 6% PA hotel occupancy tax, 6% sales tax, and 4% county hotel tax as required. Maintain accurate records and file returns on time to avoid penalties.
8. Monitor your performance: Regularly assess your occupancy rates, revenue, and expenses. Adjust your rates and marketing strategy as needed to optimize your profits. Stay up-to-date on any changes to local regulations or tax laws that may affect your business.

By following these steps and prioritizing guest satisfaction, you can launch and grow a successful short-term rental business in Lehigh County. Remember to consult with local authorities, legal professionals, and tax experts to ensure full compliance with all applicable rules and regulations.

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

To get the most accurate and up-to-date information about short-term rental regulations and zoning in Lehigh County, it's best to contact your local township, borough, or city directly. Here are some key contacts:

Lehigh County Government Center

1. Phone: (610) 782-3000
2. Address: 17 South 7th St., Allentown, PA 18101

Lehigh Valley Planning Commission

1. Phone: (610) 264-4544
2. Email: lvpc@lvpc.org
3. Address: 961 Marcon Blvd, Suite 310, Allentown, PA 18109

Lehigh Township (Northampton County)

• Zoning Officer: Elizabeth Amato
• Phone: (610) 767-6771 ext. 113
• Email: eamato@lehightownship.com
• Address: 1069 Municipal Road, Walnutport, PA 18088

North Whitehall Township (Lehigh County)

• Zoning Officer: Jeff Bartlett
• Phone: (610) 799-3411 ext. 6
• Email: jbartlett@northwhitehall.org
• Address: 3256 Levans Road, Coplay, PA 18037

City of Allentown (Lehigh County)

• Phone: (610) 437-7630
• Address: 435 Hamilton St., Allentown, PA 18101

In addition to contacting local officials, prospective and current Airbnb hosts in Lehigh County may find it helpful to connect with other local hosts to share experiences and tips. While there are no official host groups based in Lehigh County, there are some online communities that may prove useful:

• Airbnb Community Center - Lehigh Valley Hosts: https://community.withairbnb.com/t5/Hosting/ct-p/en-hosting
• Lehigh Valley Short-Term Rental Alliance Facebook Group: https://www.facebook.com/groups/610498419851204/
• BiggerPockets Lehigh Valley Real Estate Investors Meetup: https://www.biggerpockets.com/forums/521-lehigh-valley-real-estate-investors-meetup

By contacting local zoning and planning officials and connecting with the wider host community, short-term rental operators in Lehigh County can stay informed about the evolving regulatory landscape and ensure compliance with all applicable rules. Open communication is key to running a successful and sustainable Airbnb business.

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

Discussions among Airbnb hosts on Reddit and Bigger Pockets provide insight into how local short-term rental regulations are perceived and navigated in practice in Lehigh County:

On Reddit, users report that Allentown, the county's largest city, takes enforcement of short-term rental rules more seriously than other areas. Hosts express frustration with the regulatory hurdles and stiff penalties for violations. One host shared their experience being fined for operating without the proper permits in Allentown.

In contrast, hosts on Bigger Pockets note that Lehighton Borough currently has no restrictions on short-term rentals, allowing them to operate freely without special licenses. Several hosts recommend Lehighton as an Airbnb-friendly area of Lehigh County.

Other townships like Lehigh Township and North Whitehall Township fall somewhere in between, with zoning that allows short-term rentals in certain districts but not others. Hosts on Bigger Pockets discuss the process of obtaining special exceptions and variances, with mixed success. Enforcement seems inconsistent in these areas.

The consensus among Lehigh County hosts is that the regulatory environment varies significantly within the county. Allentown is strict, Lehighton is lax, and other areas are hit-or-miss. Hosts advise carefully researching the specific rules of each municipality.

Overall, while some hosts operate under the radar in areas with restrictions, they acknowledge the risks of fines and crackdowns if caught. The county as a whole is not seen as particularly welcoming to short-term rentals compared to other markets, though pockets of opportunity exist.

Prospective hosts are encouraged to connect with other local hosts, either online or in-person, to get the lay of the land before listing a property. Understanding how rules are enforced in practice, not just on paper, is key to running a compliant rental business in Lehigh County.

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.