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

Starting a Short-Term Rental Business in Tannersville

Tannersville, Pennsylvania, a popular destination in the Pocono Mountains, has specific regulations governing short-term rentals (STRs) like Airbnb and VRBO. These rules aim to balance the needs of local residents with the growing tourism sector. If you're considering starting a short-term rental business in Tannersville, here's what you need to know:

Zoning Restrictions

Short-term rentals in Tannersville are only permitted in certain zoning districts. According to local regulations, STRs are allowed in R-3, C-1, and C-2 zoning districts. However, it's important to note that as of October 2023, new licenses are no longer being issued in R-1 and R-2 residential zones. This zoning restriction is crucial to consider when selecting a property for your STR business.

Licensing and Permits

To operate a short-term rental in Tannersville, you must obtain the necessary permits and licenses:

Short-Term Rental Permit: This is required for each dwelling unit being rented as an STR. The permit is effective for one year and must be renewed annually.

Change of Use Permit: Before starting your STR operation, you may need to apply for a change of use permit under zoning regulations.

Business License: Some municipalities in the Poconos require a business license in addition to the STR permit.

Occupancy Limits

Tannersville imposes strict regulations on the number of overnight occupants allowed in each short-term rental property. The limit is typically two people per bedroom, plus two additional guests. For example, a two-bedroom rental property can accommodate a maximum of six people overnight.

Short-Term Rental Licensing Requirement in Tannersville

To operate a short-term rental (STR) in Tannersville, Pennsylvania, property owners must obtain a Short Term Rental Permit (STRP) from the Village of Tannersville. The licensing requirements are designed to ensure public safety, maintain community standards, and regulate the growing short-term rental market. Here's a comprehensive list of the requirements based on the official regulations:

• Application Submission: File a completed STRP application with the Village Clerk or Code Enforcement Officer.
• Biannual Renewal: Permits must be renewed every two years, with the deadline being January 31st of the renewal year.
• Fees: Pay the required application fee, which includes the inspection fee. The exact amount is set by resolution of the Village Board.
• Property Information: Provide detailed information about the rental property, including its address and tax parcel number.
• Owner Information: Submit the owner's name and a U.S. postal address for service of notices1.
• Tax Compliance: Provide a sworn statement that all village taxes and water rates are up to date and not in arrears.
• Water Supply: If the property uses well water, submit a water test result complying with Subpart 5-1 of the New York State Sanitary Code.
• Occupancy Limit: State the requested occupancy, which typically should not exceed two persons per bedroom except in extraordinary cases.
• Parking Plan: Submit a map showing vehicle parking for STR guests on the property. No on-street parking is allowed for STR guests.
• Insurance: Provide evidence of premises liability insurance of at least $500,000 that will be in effect during all rentals.
• Indemnification: Sign a notarized statement agreeing to indemnify and hold harmless the Village of Tannersville from any liability arising from the use of the premises as an STR1.
• Local Property Manager: Designate a local property manager who can respond to issues within 30 minutes.
• Safety Measures: Ensure the property is equipped with smoke detectors, carbon monoxide detectors, and other safety features as required.
• Information Display: Post the permit and an information sheet conspicuously within the STR1.

To submit these requirements, applicants should send the completed application and all supporting documents to:

Village of Tannersville
1 Park Lane
Tannersville, NY 12485

The initial inspection fee is $400, though this amount may be subject to change by the Village Board. The processing time for applications is typically within 30 days of receipt of a complete application, during which the Code Enforcement Officer will conduct an initial inspection.

Operating an STR without a valid permit is a violation of the local law. While specific fines for non-compliance are not detailed in the provided search results, the ordinance states that violations may result in penalties. Moreover, for existing STRs, failure to apply for a permit within 180 days of the law's effective date is considered a violation.

Required Documents for Tannersville Short-Term Rentals

To operate a short-term rental (STR) in Tannersville, Pennsylvania, property owners must submit several documents as part of their Short Term Rental Permit (STRP) application. Here's a comprehensive list of the required documents along with explanations of their purpose:

1. Completed STRP Application Form: This form includes basic information about the property, owner, and rental unit. It can be obtained from the Village Clerk or Code Enforcement Officer.
2. Proof of Ownership: A copy of the current recorded deed for the property to establish proof of ownership.
3. Owner Information: Provide the owner's name and a U.S. postal address for service of notices.
4. Tax Compliance Statement: A sworn statement that all village taxes and water rates are up to date and not in arrears.
5. Water Test Results: If the property uses well water, submit a water test result complying with Subpart 5-1 of the New York State Sanitary Code.
6. Occupancy Request: State the requested occupancy, which typically should not exceed two persons per bedroom except in extraordinary cases.
7. Parking Plan: Submit a map showing vehicle parking for STR guests on the property. No on-street parking is allowed for STR guests.
8. Proof of Insurance: Evidence of premises liability insurance of at least $500,000 that will be in effect during all rentals.
9. Indemnification Statement: A signed and notarized statement agreeing to indemnify and hold harmless the Village of Tannersville from any liability arising from the use of the premises as an STR.
10. Local Property Manager Information: For unhosted properties, provide the name, address, and phone number of a Local Property Manager who lives within 15 miles of the property and can respond to issues within 30 minutes.
11. Floor Plan: A detailed floor plan identifying all rooms, bedrooms, and the location of any pools (labeled as in-ground or above-ground).
12. Safety Equipment Verification: Proof that the property is equipped with smoke detectors, carbon monoxide detectors, and fire extinguishers as required by New York State standards.
13. 911 Fire Number Display: Evidence that the 911 fire number of the rental property is prominently displayed at the curb in numerals at least 4 inches high.

These documents should be submitted to the Village of Tannersville at 1 Park Lane, Tannersville, NY 124854. The initial inspection fee is $400, though this amount may be subject to change by the Village Board.

It's important to note that STR permits in Tannersville are valid for two years and must be renewed at the expiration of each two-year period, with the appropriate fee and inspection by the Code Enforcement Officer. Failure to comply with these requirements or operating an STR without a valid permit can result in penalties and legal issues.

Tannersville Short-Term Rental Taxes

Short-term rental operators in Tannersville, Pennsylvania must navigate a complex tax landscape that includes state, county, and potentially local taxes. Understanding these obligations is crucial for compliance and proper financial planning. Here's a breakdown of the taxes that typically apply to short-term rentals in Tannersville:

State Hotel Occupancy Tax

Pennsylvania imposes a 6% Hotel Occupancy Tax on short-term rentals14. This tax applies to all charges for the use of rooms, lodgings, or accommodations for periods less than 30 days12.

Local Hotel Occupancy Tax

In addition to the state tax, Monroe County, where Tannersville is located, levies its own Hotel Occupancy Tax. While the exact rate for Tannersville isn't specified in the search results, many counties in Pennsylvania impose an additional 1-5% tax415.

Sales Tax

Pennsylvania also requires short-term rental operators to collect a 6% state sales tax7. This is often combined with the Hotel Occupancy Tax for a total of 12% at the state level.

Local Sales Tax

Some municipalities in Pennsylvania impose an additional local sales tax. While not specifically mentioned for Tannersville, hosts should check with local authorities to confirm if any such tax applies6.

Occupancy or Lodging Taxes

Certain towns in Pennsylvania require hosts to pay occupation or lodging taxes, even for short-term rentals. The exact rate can vary by location10.

Tax Collection and Remittance

It's important to note that while platforms like Airbnb may collect and remit some taxes on behalf of hosts, it's ultimately the host's responsibility to ensure all required taxes are paid15. Hosts should verify which taxes are being collected by their chosen platform and which they need to handle directly.

Possible Write-offs and Deductions

Short-term rental hosts in Tannersville can potentially reduce their tax burden through various deductions. Some common write-offs include:

1. Mortgage interest and property taxes (if the property is used exclusively as a rental)
2. Utilities, including internet, electricity, and water
3. Cleaning fees and supplies
4. Furnishings and appliances for the rental space
5. Property insurance premiums
6. Advertising and marketing expenses
7. Property management fees
8. Repairs and maintenance costs
9. Depreciation of the property and its contents
10. Travel expenses related to managing the rental

It's crucial for hosts to maintain detailed records of all expenses and consult with a tax professional to ensure they're maximizing their deductions while remaining compliant with tax laws.

Remember, tax laws and rates can change, and local regulations may vary. Always verify current tax obligations with local authorities and consider seeking professional tax advice to ensure full compliance and optimal financial management of your short-term rental business in Tannersville.

Pennsylvania Wide Short-Term Rental Rules

Pennsylvania does not have state-wide specific laws governing short-term rentals (STRs) like Airbnb. Instead, regulation is determined by county and city governments, each with its own requirements for short-term rentals4. This decentralized approach means that hosts in Tannersville must primarily focus on local regulations while also being aware of some broader state-level considerations:

Taxation

While not a specific STR law, Pennsylvania imposes a 6% Hotel Occupancy Tax on short-term rentals, which applies to all charges for the use of rooms, lodgings, or accommodations for periods less than 30 days4. Additionally, hosts are required to collect a 6% state sales tax.

Third-Party Booking Agents

The Pennsylvania Department of Revenue has clarified that homeowners who exclusively use third-party booking agents (like Airbnb or VRBO) to rent their properties are not required to obtain a Sales, Use, and Hotel Occupancy Tax license. In these cases, the booking agent is responsible for collecting and remitting state and local taxes2.

Local Authority

The absence of state-wide regulations means that municipalities have the authority to create their own ordinances regarding short-term rentals. This can include:

1. Zoning restrictions
2. Licensing and permit requirements
3. Occupancy limits
4. Safety regulations
5. Noise ordinances
6. Parking requirements
7. Economic Opportunity

While not a rule per se, the state recognizes the economic potential of short-term rentals. Local governments are encouraged to balance regulations with the opportunity for tax revenue and economic growth from the STR industry.

Compliance Responsibility

Despite the lack of state-wide laws, hosts in Tannersville and throughout Pennsylvania are responsible for staying informed about and complying with their local ordinances. This includes keeping up with any changes or updates to these regulations.

Safety Standards

While specific requirements may vary by locality, hosts across Pennsylvania are generally expected to meet basic safety standards. This often includes installing smoke detectors, carbon monoxide alarms, and ensuring proper fire safety measures.

Does Tannersville Strictly Enforce STR Rules?

Tannersville, Pennsylvania, takes a relatively strict approach to enforcing short-term rental (STR) regulations compared to some other destinations. While the town recognizes the economic benefits of STRs, it has implemented and actively enforces a set of rules to maintain community standards and address residents' concerns.

Based on discussions from online forums like Reddit and Bigger Pockets, Tannersville is considered moderately Airbnb-friendly, but with clear boundaries. The town has established a permit system and specific requirements for STR operators, which are consistently enforced1.

Hosts in Tannersville generally operate within the established rules rather than attempting to circumvent them. This is partly due to the town's active enforcement and the potential consequences of non-compliance. One host on Reddit mentioned, "I'm not in an HOA and STRs are welcomed in my township.. I love the poconos and I'm happy with my decision". This suggests that while regulations exist, they are not overly burdensome for compliant operators.

However, it's important to note that Tannersville's approach is more stringent than some other popular vacation destinations. For instance, one Reddit user commented, "Tannersville is becoming all about warehouses now. Pocono township loves them", indicating that the town is actively managing its development, including the STR market.

The enforcement of STR rules in Tannersville appears to be consistent and thorough. The town requires hosts to obtain permits, adhere to occupancy limits, and meet safety standards1. These regulations are not just on paper but are actively enforced, with potential fines and permit revocations for non-compliance.

While some hosts may find the regulations challenging, many appreciate the structure they provide. The rules help maintain the quality of rentals and prevent oversaturation of the market. A host on Bigger Pockets noted, "I bought in fall of 22.. I visit with my family often and Airbnb .. worked out really good for me cause it was for my family 1st, airbnb 2nd... Airbnb paid 65% of all last year's costs".

How to Start a Short-Term Rental Business in Tannersville

Starting a short-term rental business in Tannersville, Pennsylvania requires careful planning and adherence to local regulations. Here's a comprehensive guide to help you get started:

1. Research the Market: Begin by thoroughly researching the Tannersville short-term rental market. Analyze local competition, pricing trends, and popular amenities. Look at successful Airbnb listings in the area to understand what attracts guests and how you can differentiate your property.
2. Understand Local Regulations: Familiarize yourself with Tannersville's specific short-term rental regulations. Obtain the necessary permits and licenses from the Township of Pocono. Ensure your property meets all safety standards and zoning requirements.
3. Create a Business Plan: Develop a detailed business plan outlining your goals, target market, financial projections, and marketing strategy. This will guide your decisions and help secure funding if needed.
4. Choose a Business Structure: Consider forming an LLC or corporation to protect your personal assets. Consult with a local attorney or financial advisor to determine the best structure for your situation.
5. Secure Financing: If necessary, explore financing options such as loans or investors to fund your property purchase or renovations. Be prepared to show your business plan and financial projections.
6. Select and Prepare Your Property: Choose a property that aligns with your business plan and local regulations. Prepare it for guests by furnishing, decorating, and stocking it with essential amenities. Consider local themes or unique features to make your rental stand out.
7. Set Up Your Business Operations: Establish systems for guest communication, cleaning, maintenance, and financial management. Consider using property management software to streamline operations.
8. Obtain Necessary Insurance: Secure appropriate insurance coverage, including general liability and property insurance. Many standard homeowners' policies don't cover short-term rentals, so you may need specialized coverage.
9. Register for Taxes: Register to collect and remit the required hotel occupancy tax to the state. Familiarize yourself with local and state tax requirements for short-term rentals.
10. Create Your Listing: Develop an attractive listing for your property on platforms like Airbnb and VRBO. Use high-quality photos, write compelling descriptions, and highlight unique features of your rental and the Tannersville area.
11. Set Competitive Pricing: Establish a pricing strategy that considers seasonal demand, local events, and competitor rates. Consider using dynamic pricing tools to optimize your rates.
12. Market Your Rental: Implement a marketing strategy to attract guests. This may include social media promotion, collaborating with local tourism boards, and encouraging guest reviews.
13. Provide Excellent Guest Experiences: Focus on creating exceptional experiences for your guests. Respond promptly to inquiries, provide local recommendations, and maintain high cleanliness standards. Aim for positive reviews to build your reputation and attract more bookings.

Remember, starting a short-term rental business in Tannersville requires ongoing attention to local regulations, market trends, and guest satisfaction. Stay informed about any changes in local ordinances and continuously seek ways to improve your offering to ensure long-term success in the competitive Tannersville short-term rental market.

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

For information about short-term rental regulations and zoning in Tannersville, Pennsylvania, you can contact the following offices:

Pocono Township Office

1. Address: 112 Township Drive, Tannersville, PA 18372
2. Phone: (570) 629-1922
3. Fax: (570) 629-7325
4. Office Hours: 8:00 am - 4:30 pm, Monday to Friday

Zoning Administrator

1. Contact: Lindsay Scerbo
2. Email: zoning@poconopa.gov

Zoning and Building Code Official

1. Contact: Shawn McGlynn
2. Email: zoning@poconopa.gov

Township Manager & Secretary

1. Contact: Jerrod Belvin
2. Email: jbelvin@poconopa.gov

When reaching out, be prepared to provide details about your property and your plans for short-term rentals. It's advisable to schedule an appointment to discuss your specific situation and ensure compliance with local regulations.

Useful Communities and Forums for Hosts

While there aren't specific local groups mentioned for Tannersville, short-term rental hosts can benefit from joining these broader communities:

• BiggerPockets Forums: A popular platform for real estate investors, including those interested in short-term rentals.
• Airbnb Community Center: An official forum for Airbnb hosts to share experiences and get updates.
• r/airbnb_hosts on Reddit: A subreddit where hosts discuss various aspects of running short-term rentals.
• AirHosts Forum: An independent forum dedicated to connecting Airbnb hosts.

These communities can provide valuable insights, tips, and support for navigating the short-term rental landscape in Tannersville and beyond.