Middle Smithfield Township, Pennsylvania Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Middle Smithfield Township

Middle Smithfield Township in Pennsylvania has implemented specific regulations to manage short-term rentals, such as those listed on Airbnb and VRBO. Initially, the township amended its zoning ordinance to restrict short-term rentals, but later adopted a more comprehensive approach by establishing a permitting system. This system allows property owners to operate short-term rentals as long as they comply with the township's regulations.

To operate a short-term rental in Middle Smithfield Township, property owners must obtain a permit and adhere to specific standards. These standards include restrictions on occupancy maximums, parking, and unwanted behaviors from transient visitors. Property owners are also required to provide contact information, safety requirements, and notice signage outside the rental property. Additionally, there are provisions for taxation, fees, and fines for non-compliance.

Middle Smithfield Township's approach aims to balance the economic benefits of short-term rentals with the needs of the community and residential atmosphere. Unlike some other areas, Middle Smithfield does not restrict the number of days a property can be rented as a short-term rental, as long as the property owner complies with the ordinance.

Short-Term Rental Licensing Requirement in Middle Smithfield Township

To operate a short-term rental in Middle Smithfield Township, property owners must comply with specific licensing requirements. Here is a detailed list of the necessary steps and documents based on the township's regulations:

Required Documents and Information

• Copy of the Current Deed: This document proves ownership of the property.
• Septic System Evaluation (if applicable): For properties with private septic systems, owners must provide the location, approximate age, and capacity of the system, along with a professional evaluation and proof of pumping within the last 12 months.
• Monroe County Hotel Room Excise Tax Certificate: This certifies registration for the local hotel tax.
• Pennsylvania Sales and Use Tax Permit: Demonstrates compliance with state tax requirements.
• Trespass Waiver: A signed document allowing township officials to access the property for inspections.
• Application Fee: The exact fee amount may vary, so it's best to contact the township for the most current information.

Submission Process

All required documents and the application fee should be submitted to the Middle Smithfield Township Zoning Office. It is advisable to contact the office directly to confirm the exact requirements and any additional documentation needed.

Fees and Processing Time

The application fee for a short-term rental license in Middle Smithfield Township is not explicitly stated, but it is recommended to inquire about the current fee structure when submitting the application. The processing time can vary, so it's important to submit applications well in advance of intended rental dates to allow for processing and potential inspections.

Penalties for Non-Compliance

Operating a short-term rental without a valid license in Middle Smithfield Township can result in significant fines. Penalties range from $100 to $1,000 per violation, with each day of non-compliance considered a separate offense. Additionally, the township may impose court costs and reasonable attorney fees. In extreme cases, imprisonment is possible to the extent allowed by law for summary offenses. The township also reserves the right to seek equitable relief, including injunctions, to enforce compliance with its regulations.

Required Documents for Middle Smithfield Township Short-Term Rentals

To operate a short-term rental in Middle Smithfield Township, property owners must submit several documents as part of the application process. Here is a list of the required documents along with their purposes and where to obtain them:

Copy of the Current Deed:

1. Purpose: Proves ownership of the property.
2. Where to Get: Obtain from the Monroe County Recorder of Deeds office.

Septic System Evaluation (if applicable):

1. Purpose: Ensures the septic system can handle rental occupancy.
2. Where to Get: Hire a professional to evaluate and provide a report on the septic system's location, age, capacity, and recent pumping records.

Monroe County Hotel Room Excise Tax Certificate:

1. Purpose: Certifies registration for local hotel tax collection.
2. Where to Get: Obtain from the Monroe County Treasurer's office.

Pennsylvania Sales and Use Tax Permit:

1. Purpose: Allows collection and remittance of state sales tax.
2. Where to Get: Apply through the Pennsylvania Department of Revenue.

Trespass Waiver:

1. Purpose: Allows township officials to access the property for inspections.
2. Where to Get: Typically provided by the township as part of the application process.

Application Fee:

1. Purpose: Covers administrative costs for processing the application.
2. Where to Get: Payable to Middle Smithfield Township as part of the application submission.

Property Identification Number (PIN):

1. Purpose: Identifies the property for administrative purposes.
2. Where to Get: Obtain from local property records or the township office.

Managing Agent Information (if applicable):

1. Purpose: Provides contact details for a local managing agent if the owner is not a local resident.
2. Where to Get: Self-provided by the property owner or managing agent.

Proof of Safety Equipment:

• Purpose: Ensures compliance with safety standards (e.g., smoke detectors, fire extinguishers).
• Where to Get: Self-provided by installing necessary safety equipment and providing evidence of compliance.

These documents are essential for ensuring compliance with local regulations and maintaining a safe and well-managed short-term rental property in Middle Smithfield Township.

Middle Smithfield Short-Term Rental Taxes

Short-term rental operators in Middle Smithfield Township, Pennsylvania, are subject to several taxes that apply to their rental income. Understanding these tax obligations is crucial for running a compliant and profitable short-term rental business.

Tax Types and Rates

Pennsylvania Hotel Occupancy Tax:

• Rate: 6% of the total listing price, including any cleaning fees and guest fees for reservations of 29 nights or less.
• Purpose: This state-level tax applies to all short-term rentals across Pennsylvania and is collected by the Pennsylvania Department of Revenue.

Monroe County Hotel Room Excise Tax:

• Rate: While not explicitly stated for Middle Smithfield Township, nearby areas in Monroe County impose a 3% hotel excise tax. It's advisable to confirm if this applies.
• Purpose: This local tax is collected by the county and applies to short-term rentals.

Local Sales Tax:

• Rate: Typically, there is no additional local sales tax in Monroe County, but it's important to verify this with local authorities.
• Purpose: This tax would apply to the rental income if levied by the local government.

Income Taxes:

• Federal Income Tax: Rental income is subject to federal income tax and should be reported on Schedule E of your tax return.
• Pennsylvania Personal Income Tax: Rental income is also taxable at the state level in Pennsylvania.

Possible Write-Offs and Deductions

Short-term rental operators can potentially reduce their tax liability through various deductions:

• Property-related expenses: This includes mortgage interest, property taxes, insurance premiums, and depreciation on the property and major appliances or furniture.
• Operational costs: Expenses such as cleaning fees, maintenance costs, utilities, and property management fees are typically deductible.
• Advertising and marketing expenses: Costs associated with promoting your rental can be written off.
• Supplies: Expenditures on items like linens, toiletries, and other guest amenities are deductible.
• Professional services: Fees paid for accounting, legal, or tax preparation services related to your rental business can be deducted.
• Travel expenses: If you incur travel costs to check on or maintain your rental property, these may be deductible.

It's important to consult with a tax professional familiar with short-term rental regulations in Middle Smithfield Township to ensure you're maximizing your deductions while remaining compliant with all applicable tax laws.

Pennsylvania Wide Short-Term Rental Rules

In Pennsylvania, short-term rental operators must comply with both local and state-wide regulations. While local ordinances like those in Middle Smithfield Township provide specific guidelines for operating short-term rentals, there are also state-wide rules that apply to all hosts across Pennsylvania.

Pennsylvania-Wide Regulations

Hotel Occupancy Tax:

• Rate: Pennsylvania imposes a 6% hotel occupancy tax on short-term rentals, which is the same rate as the state sales tax. This tax applies to all rentals of 29 nights or less.
• Purpose: This tax is collected by the state and applies to all short-term rental income.

Sales and Use Tax:

• Rate: While not an additional tax specifically for short-term rentals, rental income is subject to Pennsylvania's sales and use tax if applicable goods or services are sold.
• Purpose: This tax is collected by the Pennsylvania Department of Revenue and applies to certain goods and services.

Tenant Rights and Landlord Obligations:

Pennsylvania's landlord-tenant law outlines rights and responsibilities for tenants and landlords, including those related to short-term rentals. This includes the right to a habitable living space and the duty to maintain properties safely.

Lease Agreements:

While not specific to short-term rentals, Pennsylvania law requires lease agreements to include essential information such as landlord identity, security deposit details, and clear terms on rent and duration.

Compliance and Enforcement

Pennsylvania does not have a centralized registry for short-term rentals at the state level, but local municipalities like Middle Smithfield Township require property owners to obtain permits and comply with local ordinances. Non-compliance with state or local regulations can result in fines and penalties, emphasizing the importance of understanding both state-wide and local rules.

Does Middle Smithfield Township Strictly Enforce STR Rules?

Middle Smithfield Township has implemented regulations to manage short-term rentals, but the enforcement of these rules is not as strict as in some other nearby municipalities like Lehman Township. While Middle Smithfield Township requires permits and adherence to specific standards, it allows for a more balanced approach between property owners' rights and community needs.

Middle Smithfield Township's enforcement is proactive but not overly aggressive. The township has established a permitting system that requires property owners to comply with safety standards, occupancy limits, and other regulations. However, unlike Lehman Township, which has banned new short-term rentals in residential zones, Middle Smithfield Township does not have such stringent restrictions. This suggests that while enforcement exists, it is more focused on ensuring compliance rather than outright prohibition.

Compared to other cities, Middle Smithfield Township is moderately Airbnb-friendly. It allows short-term rentals with proper permits, which is more permissive than some other areas in the Poconos region. However, it still maintains strict regulations to protect the residential character of neighborhoods and address potential issues like noise and overcrowding.

How to Start a Short-Term Rental Business in Middle Smithfield Township

Starting a short-term rental business in Middle Smithfield Township involves several key steps. Here's a comprehensive guide to help you get started:

• Research Local Regulations: Understand Middle Smithfield Township's zoning laws, permit requirements, and any restrictions on short-term rentals. Familiarize yourself with the necessary documents and fees. Consult with local authorities or a real estate attorney to ensure compliance with all regulations. Join local forums or groups to stay updated on any changes.
• Choose the Right Property: Select a property that is zoned for short-term rentals and meets local safety and health standards. Consider factors like proximity to attractions, parking availability, and neighborhood quality.Conduct a thorough inspection of the property to identify any needed repairs or upgrades. Ensure that the property aligns with your target market's preferences.
• Secure Financing: Determine your budget and secure financing if necessary. This includes covering purchase costs, renovations, and ongoing expenses like property taxes and insurance.Consider working with a financial advisor to explore options like mortgages or investment loans. Plan for contingencies and unexpected expenses.
• Obtain Necessary Permits: Apply for a short-term rental permit from Middle Smithfield Township. Ensure you have all required documents, such as a copy of the deed and septic system evaluation if applicable. Submit your application well in advance to allow time for processing. Be prepared to address any issues or concerns raised by local authorities.
• Prepare the Property: Renovate and furnish the property to meet guest expectations. Install necessary safety equipment like smoke detectors and fire extinguishers. Invest in quality furnishings and amenities to enhance guest experience. Consider hiring a professional interior designer for optimal layout and decor.
• Set Up Tax and Accounting Systems: Register for state and local taxes, including the Pennsylvania hotel occupancy tax. Set up an accounting system to track income and expenses. Consult with a tax professional to ensure compliance with all tax obligations. Use accounting software to streamline financial management and maximize deductions.
• Create a Listing: Develop an attractive listing on platforms like Airbnb or VRBO. Include high-quality photos, detailed descriptions, and clear house rules.Optimize your listing for search visibility by using relevant keywords. Respond promptly to inquiries and maintain a high response rate to improve visibility.
• Develop a Guest Management Strategy: Establish clear communication channels with guests. Set up a system for handling inquiries, check-ins, and any issues that may arise. Use automated messaging tools to streamline communication. Consider hiring a property management service if you have multiple properties or prefer hands-off management.
• Monitor and Adjust: Continuously monitor guest feedback and adjust your strategy as needed. Stay updated on local regulations and market trends.Encourage guests to leave reviews to improve your listing's visibility. Analyze feedback to identify areas for improvement and implement changes to enhance guest satisfaction.

By following these steps and tips, you can successfully launch and manage a short-term rental business in Middle Smithfield Township, ensuring compliance with local regulations while providing a great experience for your guests.

Who to Contact in Middle Smithfield Township about Short-Term Rental Regulations and Zoning?

For information about short-term rental regulations and zoning in Middle Smithfield Township, Pennsylvania, you can contact the following officials and resources:

Contact Information

Middle Smithfield Township Zoning Office:

• Phone: 570-223-8920 (follow prompts to reach the zoning department)
• Email: Contact the township office for specific email addresses.
• Address: Middle Smithfield Township Municipal Building, 147 Municipal Drive, East Stroudsburg, PA 18302

Zoning Officer: Shawn McGlynn

Phone: 570-223-8920 Ext. 128

Assistant Zoning Officer: Lori McCrory

Phone: 570-223-8920 Ext. (Contact the township for the exact extension)

Useful Groups and Communities

For hosts looking to connect with others in the area or find additional resources, consider the following:

1. BiggerPockets Forums: This platform has discussions about short-term rentals in the Poconos area, which includes Middle Smithfield Township.
2. Airbnb Community Center: While not specific to Middle Smithfield Township, this online forum allows hosts to share experiences and ask questions about hosting in various locations.
3. Pocono Mountains Visitors Bureau: They may have resources or information about operating short-term rentals in the region.
4. Local Real Estate Agents: Many real estate professionals specializing in the Poconos area are knowledgeable about short-term rental regulations and can provide valuable insights.
5. Monroe County Planning Commission: For broader county-level planning and zoning information, contact them at 570-517-3100.

Middle Smithfield Township Website: Visit the official township website for forms, ordinances, and updates on short-term rental regulations.

Remember to verify any information directly with the township for the most up-to-date and accurate guidance on short-term rental operations in Middle Smithfield Township.