Mount Pocono, Pennsylvania Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Mount Pocono

Mount Pocono, Pennsylvania, has established specific regulations for short-term rentals (STRs) like Airbnb and VRBO to maintain community standards and ensure guest safety. If you're considering starting an STR business in Mount Pocono, here's what you need to know:

• Licensing and Permits: Every short-term rental in Mount Pocono must obtain a valid license, which needs to be renewed annually6. This requirement applies to each individual rental unit, even in multi-family dwellings. The licensing process involves submitting an application to the Zoning Officer and paying the required fees6.
• Zoning Restrictions: Short-term rentals are only permitted in specific zoning districts within Mount Pocono. As of 2023, STRs are allowed in R-3, C-1, and C-2 zoning districts5. This zoning restriction aims to balance the needs of residential areas with the tourism industry that's vital to the Pocono economy.
• Occupancy Limits: Mount Pocono imposes strict occupancy limits for STRs. The maximum number of overnight guests is calculated as two people per bedroom, plus an additional two guests1. For example, a two-bedroom rental can accommodate a maximum of six people overnight. This rule helps prevent overcrowding and maintains the residential character of neighborhoods.
• Safety Requirements: To ensure guest safety, Mount Pocono requires STRs to meet specific safety standards. These include installing working smoke detectors, fire extinguishers, and ensuring staircases are in good condition1. Additionally, all bedrooms must meet minimum size requirements - no less than 70 square feet for a single occupant and 100 square feet for two occupants6.
• Parking Regulations: The borough requires STRs to provide a minimum of one off-street parking space per bedroom1. This rule helps prevent parking congestion in residential areas, a common complaint among neighbors of STRs.
• Local Contact Requirement: STR owners must designate a local contact person who can respond to issues within 30 minutes8. This requirement ensures that any problems can be addressed promptly, minimizing disturbances to neighbors.
• Noise and Behavior Regulations: Mount Pocono has implemented rules to control noise levels and regulate guest behavior. STR owners are expected to inform their guests about these regulations and take action if violations occur.
• Taxes: Short-term rental owners in Mount Pocono are required to collect and remit both Pennsylvania Sales and Use Tax and the Monroe County Hotel Excise Tax.

It's worth noting that the short-term rental landscape in the Poconos, including Mount Pocono, has become increasingly regulated in recent years. As one Reddit user commented, "Locals are getting more hostile toward short term renters who are only interested in profit or lower mortgage and make the neighborhood deal with the fallout". This sentiment has led to stricter enforcement of regulations.

Another important consideration is the saturation of the market. A property owner on Reddit noted, "The market is saturated and now some townships are requiring someone (either owner or manager) to be no further then 30 minutes from the property". This highlights the importance of thorough market research before investing in an STR property in Mount Pocono.

While starting a short-term rental business in Mount Pocono can be profitable, it requires careful planning and strict adherence to local regulations. Prospective STR owners should consult with local authorities and possibly a real estate attorney familiar with local laws before proceeding. Remember, regulations can change, so it's crucial to stay informed about any updates to Mount Pocono's STR ordinances.

Short-Term Rental Licensing Requirement in Mount Pocono

Mount Pocono has established a comprehensive licensing system for short-term rentals to ensure compliance with local regulations and maintain community standards. Here's a detailed breakdown of the requirements:

1. License Application: Every short-term rental unit in Mount Pocono must obtain a valid license. This applies to each individual rental unit, even in multi-family dwellings.
2. Annual Renewal: Licenses must be renewed annually.
3. Zoning Restrictions: Short-term rentals are only allowed in R-3, C-1, and C-2 zoning districts. As of October 2023, new licenses are no longer issued in R-2 districts.
4. Lot Size: In R-2 Zoning Districts, the dwelling unit must be situated on a lot of at least 0.50 acres.
5. Application Requirements:
   - Owner's name, address, telephone number, and email address
   - 24-hour contact information for the managing agency, agent, or local contact person
   - Diagram or photograph of the premises showing designated parking spaces
   - Sewage disposal system information (if not on central sewer)
   - Acknowledgment of regulations and posting requirements
   - Copy of Monroe County Hotel Room Excise Tax Certificate and Pennsylvania Sales Tax License (if applicable)
   - Any other information deemed necessary by the Code Official

Occupancy Limits: The maximum number of overnight guests is calculated as two people per bedroom, plus an additional two guests.

Parking: A minimum of one off-street parking space per bedroom must be provided.

Safety Requirements: The property must meet specific safety standards, including working smoke detectors, fire extinguishers, and sturdy staircases.

Local Contact: A designated local contact person who can respond to issues within 30 minutes is required.

To submit these requirements, applicants should file their application with the Code Official at the Mount Pocono Borough office. The short-term rental application form is available on the Mount Pocono Borough website.

Regarding fees, while the exact amount isn't specified in the search results, it's common for municipalities to charge an application fee. The process duration may vary, but typically takes a few weeks to complete.

Penalties for operating without a license can be severe. Any person who violates the short-term rental ordinance may be subject to a fine of up to $1,000 per day of violation, along with costs of suit, including reasonable attorneys' fees. Each day of violation constitutes a separate offense. Additionally, if an owner commits two or more offenses resulting in convictions within one year, the short-term rental license may be revoked.

Required Documents for Mount Pocono Short-Term Rentals

To operate a short-term rental in Mount Pocono, Pennsylvania, property owners must obtain and maintain several essential documents. Here's a comprehensive list of the required paperwork:

1. Short-Term Rental License: This is the primary document required to legally operate an STR in Mount Pocono. It must be renewed annually and is issued by the Code Official.
2. Zoning Permit: Confirms that the property is located in an approved zone for STR operation (R-3, C-1, or C-2 districts).
3. Property Diagram or Photograph: A visual representation of the premises showing designated parking spaces. This helps ensure compliance with parking regulations.
4. Sewage Disposal System Information: Required if the property is not on a central sewer system. This document verifies proper waste management.
5. Acknowledgment of Regulations: A signed statement confirming that the owner, agent, or local contact person has read and understood all STR regulations.
6. Posting Requirements Acknowledgment: A signed statement agreeing to post and maintain the required notices within the rental property.
7. Monroe County Hotel Room Excise Tax Certificate: This document is necessary for collecting and remitting the required local taxes.
8. Pennsylvania Sales Tax License: Required for collecting and remitting state sales tax on rental income.
9. Local Contact Information: Documentation providing 24-hour contact details for the managing agency, agent, or local contact person.
10. Safety Inspection Certificate: While not explicitly mentioned in the search results, this is likely required to prove compliance with safety standards such as smoke detectors and fire extinguishers.
11. Occupancy Calculation: A document showing the maximum occupancy based on the number of bedrooms (two people per bedroom plus two additional guests).
12. Parking Plan: Documentation detailing both on-site and off-site parking arrangements, ensuring at least one space per bedroom.

To obtain these documents, property owners should contact the Mount Pocono Borough office and the Code Official. The application form for the short-term rental license is available on the Mount Pocono Borough website. Some documents, such as tax certificates and licenses, may need to be obtained from relevant county or state offices.

Mount Pocono Short-Term Rental Taxes

Short-term rental operators in Mount Pocono, Pennsylvania, are subject to several taxes. Understanding these tax obligations is crucial for running a compliant and profitable rental business. Here's a breakdown of the taxes that apply:

1. Pennsylvania Hotel Occupancy Tax: This state-level tax is set at 6% of the listing price, including any cleaning fees and guest fees for reservations of 29 nights or shorter. This tax applies uniformly across Pennsylvania, regardless of the specific location of the Airbnb property.
2. Local Hotel Occupancy Tax: Mount Pocono imposes a 3% Hotel Excise Tax on short-term rentals5. This is in addition to the state-level tax and is specific to the Mount Pocono area.
3. Sales Tax: While not explicitly mentioned for Mount Pocono, Pennsylvania has a 6% state sales tax rate. Short-term rental operators should be prepared to collect and remit this tax as well.
4. Local Sales Tax: Some counties in Pennsylvania impose an additional 1% local sales tax. However, the search results don't specify if this applies to Mount Pocono.

It's important to note that while platforms like Airbnb often collect and remit these taxes on behalf of hosts, it's ultimately the host's responsibility to ensure all required taxes are paid.

Possible Write-offs and Deductions

Short-term rental operators in Mount Pocono can potentially reduce their tax burden through various deductions:

1. Mortgage Interest: If you have a mortgage on your rental property, the interest paid is typically deductible.
2. Property Taxes: The property taxes paid on your rental property can be deducted4.
3. Insurance Premiums: Costs for property insurance are generally deductible16.
4. Depreciation: You may be able to claim depreciation on your property and major appliances or furniture.
5. Cleaning and Maintenance: Fees for professional cleaning and property upkeep are deductible.
6. Utilities: Costs for electricity, water, gas, and internet used for the rental can be deducted.
7. Furnishings and Supplies: Expenses for furniture, linens, and other guest supplies are deductible.
8. Marketing and Advertising: Costs associated with promoting your rental can be written off.
9. Property Management Fees: If you use a property management service, these fees are typically deductible.
10. Travel Expenses: If you travel to check on or maintain your rental property, these costs may be deductible.

Remember, accurate record-keeping is crucial for claiming these deductions. It's advisable to consult with a tax professional familiar with short-term rental regulations in Mount Pocono to ensure you're maximizing your deductions while remaining compliant with all tax laws.

Statewide Short-Term Rental Rules

While Pennsylvania doesn't have comprehensive statewide regulations for short-term rentals, there are some important rules that affect all hosts, including those in Mount Pocono:

1. Taxation: Short-term rental operators across Pennsylvania must collect and remit a 6% hotel occupancy tax, which is equivalent to the state sales tax rate. This tax applies to rentals of 29 nights or shorter.
2. Tax Registration: Before collecting taxes, operators must register for a tax license through the myPATH system (mypath.pa.gov). This registration is required even if a third-party platform collects taxes on the host's behalf.
3. Income Reporting: Income from short-term rentals should be reported on Tax Schedule C for rentals of 29 nights or less. For longer-term rentals (over 30 days), hosts should use Schedules E, R, or Royalty Income.
4. Insurance Requirement: While not explicitly stated as a statewide rule, many municipalities in Pennsylvania, including Mount Pocono, require short-term rental operators to maintain liability insurance. The typical minimum coverage is $500,000.
5. Local Regulations: It's important to note that Pennsylvania allows significant autonomy to local governments in regulating short-term rentals. This means that rules can vary widely between municipalities. Mount Pocono hosts should be aware that local regulations may be more stringent than state-level requirements.
6. Zoning Considerations: While not a statewide rule, many Pennsylvania municipalities, including Mount Pocono, have implemented zoning restrictions for short-term rentals. Hosts should verify that their property is in a zone that permits short-term rentals.
7. Safety Standards: Although specific requirements may vary by location, Pennsylvania generally expects short-term rentals to meet basic safety standards. This typically includes functioning smoke detectors, fire extinguishers, and safe structural elements like staircases.

While these rules apply across Pennsylvania, it's crucial for Mount Pocono hosts to remember that local regulations often go beyond these basic statewide requirements. Always consult with local authorities or a legal professional to ensure full compliance with both state and local laws.

Does Mount Pocono Strictly Enforce STR Rules?

Mount Pocono takes a relatively strict approach to enforcing short-term rental (STR) regulations compared to other cities. The borough has implemented comprehensive rules and actively monitors compliance, making it a moderately Airbnb-friendly destination with clear guidelines for hosts.

Mount Pocono's enforcement strategy includes:

1. Licensing Requirements: Every STR unit must obtain a valid license, which needs annual renewal. This allows the borough to keep track of all active rentals.
2. Occupancy Limits: The borough imposes strict occupancy restrictions, calculated as two people per bedroom plus an additional two guests. This rule is actively enforced to prevent overcrowding and maintain neighborhood character.
3. Safety Inspections: Regular safety inspections are conducted to ensure compliance with fire safety and structural requirements. Failure to meet these standards can result in license revocation.
4. Zoning Restrictions: STRs are only permitted in specific zoning districts (R-3, C-1, and C-2). The borough actively enforces these zoning regulations to maintain the balance between residential and tourist areas.
5. Local Contact Requirement: Hosts must designate a local contact person who can respond to issues within 30 minutes. This rule is enforced to ensure prompt resolution of any problems.

While Mount Pocono is not as restrictive as some major cities, it's clear that the borough takes its STR regulations seriously. However, the enforcement approach seems to be more focused on ensuring compliance rather than outright prohibition.

Despite the rules, many hosts continue to operate successfully in Mount Pocono. As one Reddit user noted, "Overall, it was worth it. It made good money, and we couldn't be there all the time, so it was better than having it sit idle". This suggests that while the rules are enforced, they are not so restrictive as to discourage all STR activity.

However, it's important to note that the market has become increasingly saturated, and local sentiment towards STRs has shifted. Another Reddit user mentioned, "Locals are getting more hostile toward short-term renters who are only interested in profit or lower mortgage and make the neighborhood deal with the fallout". This changing attitude may lead to stricter enforcement in the future.

How to Start a Short-Term Rental Business in Mount Pocono

Starting a short-term rental business in Mount Pocono requires careful planning and adherence to local regulations. Here's a step-by-step guide to get you started:

1. Research Local Regulations: Thoroughly review Mount Pocono's short-term rental ordinances. Pay special attention to zoning restrictions, as STRs are only permitted in R-3, C-1, and C-2 zoning districts. Ensure your property meets the minimum lot size requirement of 0.50 acres if in an R-2 Zoning District.
2. Evaluate Your Property: Assess your property's suitability for short-term rentals. Consider factors like location, amenities, and potential guest appeal. Ensure you can provide the required off-street parking (one space per bedroom) and that your property isn't within 500 feet of another STR.
3. Develop a Business Plan: Create a comprehensive business plan outlining your investment strategy, target market, pricing approach, and financial projections. Set clear goals and metrics to measure success. Consider factors like seasonality in the Poconos when planning your revenue strategy.
4. Secure Financing: If needed, explore financing options for property acquisition or renovations. Consider mortgages, home equity loans, or partnerships. Ensure you have sufficient reserves to cover startup costs and initial operating expenses.
5. Obtain Necessary Licenses and Permits: Apply for a short-term rental license from the Mount Pocono Borough office. Each rental unit requires its own license, renewed annually. You'll also need to register for tax purposes to collect and remit the required state and local taxes.
6. Prepare Your Property: Renovate and furnish your property to meet safety standards and create an attractive space for guests. Install required safety equipment like smoke detectors and fire extinguishers. Consider hiring a professional designer to optimize the layout and decor for the short-term rental market.
7. Designate a Local Contact Person: Appoint a local contact who can respond to issues within 30 minutes, as required by Mount Pocono regulations. This could be yourself, a property manager, or another responsible individual.
8. Set Up Your Listing: Create compelling listings on platforms like Airbnb or VRBO. Use professional photos and detailed descriptions highlighting your property's unique features and local attractions. Be sure to clearly state any house rules, including age restrictions if applicable.
9. Implement a Management System: Choose a reliable property management system to handle bookings, guest communication, and cleaning coordination. Consider using a professional cleaning service to maintain high standards between guests.
10. Stay Compliant and Adapt: Keep up with any changes in local regulations. Renew your license annually and be prepared for potential inspections. Continuously gather guest feedback and adjust your offering to improve the guest experience and maintain competitiveness in the market.

Remember, success in the short-term rental business requires ongoing effort and adaptation. Stay informed about market trends, maintain open communication with neighbors and local authorities, and always prioritize guest satisfaction while respecting community standards.

Who to Contact in Mount Pocono about Short-Term Rental Regulations and Zoning?

If you're looking to operate a short-term rental in Mount Pocono, it's crucial to stay informed about the latest regulations and zoning requirements. Here's who you should contact for the most up-to-date information:

Zoning and Code Enforcement Officer

1. Name: Shawn McGlynn
2. Phone: (484) 330-9088
3. Email: smcglynn@sfmconsultingllc.org
4. Office: 1361 Pocono Boulevard Suite 100
5. Office Hours: Monday, Wednesday, and Friday, 8am - 11am (Call to make an appointment)

Mount Pocono Borough Office

• Phone: (570) 839-8436
• Fax: (570) 839-0981
• Website: https://mountpocono-pa.gov/[5]

For specific questions about short-term rental regulations, zoning permits, and licensing requirements, these contacts should be your primary resources. Remember that Mount Pocono only allows short-term rentals in R-3, C-1, and C-2 zoning districts as of October 2023.

Useful Communities and Resources for Hosts:

• Pocono Region Short-Term Renting Owners' Group on Facebook: This is a private group for short-term rental homeowners or those considering a STR in the Pocono region.
• Pocono Mountains Association of REALTORS® (PMAR) Short-Term Rental Committee: This committee provides education and resources for STR owners in the Pocono Mountains area.
• Poconos Association for Vacation Rental Homeowners (PoconosVRO): This organization aims to be the voice of short-term rentals in the Pocono Mountains and provides valuable resources for owners.
• BiggerPockets Forums: There are several threads discussing short-term rentals in the Poconos area, which can provide peer insights and experiences.
• Pocono Mountains Visitors Bureau: They partner with various organizations to ensure that owners, property managers, renters, and guests are following guidelines and being good neighbors.

By staying connected with these official channels and community resources, you'll be better equipped to navigate the short-term rental landscape in Mount Pocono and the broader Pocono Mountains region.