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

Starting a Short-Term Rental Business in Tobyhanna Township

Tobyhanna Township, located in the heart of the Pocono Mountains, has become a popular destination for short-term rentals (STRs) in recent years. However, the township has implemented strict regulations to manage the growth of STRs and maintain the residential character of its communities. If you're considering starting a short-term rental business in Tobyhanna Township, here's what you need to know:

Permit Requirements

To operate a short-term rental in Tobyhanna Township, you must obtain a permit from the township. The permit process includes:

• Submitting a short-term rental permit application
• Paying the initial license application fee of $200
• Undergoing a property inspection
• Providing proof of a recent septic system pump-out
• Verifying compliance with occupancy limits and safety standards

It's important to note that permits are non-transferable and must be renewed annually for a fee of $150.

Occupancy Limits

Tobyhanna Township has implemented strict occupancy limits for short-term rentals. The township bases its occupancy limits on the International Building Code (IBC), which is more restrictive than many other municipalities in the area. This has been a point of contention for many STR owners, as it can significantly limit the number of guests allowed in a property.

Septic System Requirements

One of the most challenging aspects of obtaining an STR permit in Tobyhanna Township is meeting the septic system requirements. The township requires proof of a recent septic system pump-out, and in some cases, may require additional inspections or upgrades. For example, one property owner reported being required to upgrade their 500-gallon septic system to a 1,000-gallon system to obtain a permit.

Community Pushback

It's worth noting that there has been significant community pushback against short-term rentals in Tobyhanna Township. Some long-term residents have expressed concerns about noise, traffic, and the changing character of their neighborhoods. This has led to increased scrutiny of STR applications and stricter enforcement of regulations.

Recent Developments

As of March 2024, Tobyhanna Township has implemented a cap on the number of STR licenses, limiting them to 12% of the total number of homes in the township. This cap has created additional challenges for those looking to enter the STR market in Tobyhanna Township.

Short-Term Rental Licensing Requirement in Tobyhanna Township

To operate a short-term rental (STR) in Tobyhanna Township, property owners must obtain a Short-Term Rental Permit. Here's a comprehensive list of requirements based on the official township regulations:

Licensing Requirements:

1. Complete a Short-Term Rental Permit application
2. Provide proof of property ownership (copy of current recorded deed)
3. Submit a septic system certification (proof of recent pump-out)
4. Pass a property inspection
5. Provide a 24-hour contact number for the owner or local property manager
6. Submit a parking plan showing available off-street parking spaces
7. Provide proof of general liability insurance (minimum $500,000 coverage)
8. Sign a trespass waiver allowing township officials to inspect the property
9. Include a full copy of the Tobyhanna Township Short-Term Rental Ordinance with rental agreements
10. Comply with occupancy limits based on the International Building Code
11. Install smoke alarms, carbon monoxide detectors, and fire extinguishers
12. Display permit number in all advertisements

Submission and Fees:

Submit all required documentation and fees to:

Tobyhanna Township Office
105 Government Center Way
Pocono Pines, PA 18350

As of January 2025, the fees are as follows:

1. Initial license application fee: $600
2. Annual renewal fee: $500

Processing Time:

The initial license application typically takes up to 30 days to process once all documentation is submitted. Renewal applications should be submitted at least 30 days before the current license expires.

Penalties for Non-Compliance:

Operating an STR without a valid permit in Tobyhanna Township can result in severe penalties:

1. Fines ranging from $1,000 to $3,000 per violation
2. Each day of operation without a permit is considered a separate violation
3. The township may seek equitable relief, including injunctions to enforce compliance
4. All fines, penalties, costs, and reasonable attorney's fees will be charged to the property owner
5. Three uncured or repeated violations in a 12-month period can result in permit revocation or denial of renewal
6. The first set of two violations leads to a one-year revocation, while subsequent violations result in a three-year revocation

It's crucial for STR owners to stay compliant with all regulations, as the township has implemented strict enforcement measures. The permit is valid for one year and must be renewed annually, with renewal applications including any updated information or changes to the property.

Required Documents for Tobyhanna Township Short-Term Rentals

To operate a short-term rental in Tobyhanna Township, property owners must submit several documents as part of their permit application. Here's a list of the required documents along with explanations of their purpose and where to obtain them:

Completed Short-Term Rental Permit Application

1. Purpose: To provide essential information about the property and owner.
2. Where to get: Available on the Tobyhanna Township website or at the township office.

Proof of Property Ownership

1. Purpose: To verify that the applicant is the legal owner of the property.
2. Where to get: Copy of the current recorded deed from the Monroe County Recorder of Deeds office.

Septic System Certification

1. Purpose: To ensure the septic system is functioning properly and can handle the occupancy.
2. Where to get: Recent pump-out receipt and inspection report from a licensed septic service provider.

Parking Plan

1. Purpose: To demonstrate adequate off-street parking for guests.
2. Where to get: Create a diagram or aerial photograph showing available parking spaces.

Proof of General Liability Insurance

• Purpose: To protect against potential liability claims.
• Where to get: Obtain from your insurance provider (minimum $500,000 coverage).

Monroe County Hotel Room Excise Tax Certificate

• Purpose: To ensure compliance with local tax regulations.
• Where to get: Monroe County Treasurer's Office.

Pennsylvania Sales and Use Tax Permit

• Purpose: To comply with state tax requirements for short-term rentals.
• Where to get: Pennsylvania Department of Revenue website.

Trespass Waiver

• Purpose: To allow township officials to inspect the property when necessary.
• Where to get: Provided by the Tobyhanna Township office.

Property Inspection Report

• Purpose: To verify compliance with safety standards and occupancy limits.
• Where to get: Scheduled through the Tobyhanna Township office upon application submission.

Signed Attestation of Ordinance Compliance

• Purpose: To acknowledge understanding and agreement to follow all STR regulations.
• Where to get: Included in the application package from Tobyhanna Township.

24-hour Contact Information

• Purpose: To provide a local point of contact for emergencies or complaints.
• Where to get: Designate a responsible party within a 30-minute drive of the property.

Homeowners Association Notification (if applicable)

• Purpose: To inform the HOA of the intent to operate an STR.
• Where to get: Write a letter to your HOA board.

It's important to note that as of March 2024, Tobyhanna Township has implemented a cap on STR licenses, limiting them to 12% of the total number of homes in the township8. This new regulation may affect the availability of permits for new applicants. Always check with the township office for the most up-to-date requirements and availability before submitting your application.

Tobyhanna Township Short-Term Rental Taxes

Short-term rental operators in Tobyhanna Township, Pennsylvania, are subject to several taxes. Understanding these tax obligations is crucial for running a compliant and successful rental business. Here's a breakdown of the applicable taxes:

Pennsylvania Hotel Occupancy Tax: This is a statewide tax of 6% on the rental price, including any cleaning fees or additional services. This tax applies to all short-term rentals in Pennsylvania, including those in Tobyhanna Township.

Monroe County Hotel Excise Tax: Monroe County, where Tobyhanna Township is located, imposes an additional 3% tax on short-term rentals. This brings the total tax rate to 9% for rentals in the township.

Local Sales Tax: While not specifically mentioned for Tobyhanna Township, it's worth noting that some Pennsylvania jurisdictions charge an additional 1% local sales tax on short-term rentals23. However, this may not apply in Tobyhanna Township.

Income Tax: Rental income is subject to both federal and state income tax. In Pennsylvania, you'll need to report your rental income on your personal income tax return.

It's important to note that while platforms like Airbnb often collect and remit some of these taxes on behalf of hosts, it's ultimately the host's responsibility to ensure all taxes are properly paid. Always verify which taxes are being collected by your booking platform and which you need to handle directly.

Possible Write-offs and Deductions

Short-term rental hosts in Tobyhanna Township may be eligible for several tax deductions to offset their rental income. Some potential deductions include:

1. Mortgage interest and property taxes
2. Cleaning and maintenance costs
3. Utilities (proportional to rental use)
4. Insurance premiums
5. Depreciation of the property and furnishings
6. Repairs and improvements
7. Supplies for guests
8. Marketing and advertising expenses
9. Professional fees (e.g., accountant, property manager)
10. Travel expenses related to managing the rental

To maximize these deductions, it's crucial to keep detailed records of all expenses related to your short-term rental business. Consider consulting with a tax professional familiar with short-term rental regulations in Pennsylvania to ensure you're taking advantage of all available deductions while remaining compliant with tax laws.

Remember, tax laws can change, and individual circumstances vary. Always consult with a qualified tax professional for personalized advice regarding your short-term rental business in Tobyhanna Township.

Pennsylvania Wide Short-Term Rental Rules

While Tobyhanna Township has its own specific regulations for short-term rentals, there are also state-wide rules that affect hosts across Pennsylvania, including those in Tobyhanna Township. Here are the key state-wide requirements:

Hotel Occupancy Tax: Short-term rental operators in Pennsylvania must collect and remit a 6% hotel occupancy tax on the rental price, including any cleaning fees or additional services3. This tax applies to all short-term rentals throughout the state, regardless of local regulations.

Sales and Use Tax Permit: Short-term rental hosts in Pennsylvania are required to obtain a Pennsylvania Sales and Use Tax Permit7. This permit allows hosts to collect and remit the required taxes to the state.

Liability Insurance: While not a state-wide requirement, many municipalities in Pennsylvania, including Tobyhanna Township, require short-term rental operators to maintain liability insurance. The typical minimum coverage required is $500,0007.

Property Rights: Pennsylvania law generally recognizes property owners' rights to rent out their properties. However, local municipalities have the authority to regulate short-term rentals through zoning ordinances and other local regulations1.

Zoning Compliance: Short-term rentals must comply with local zoning regulations. While these can vary by municipality, state law allows local governments to enforce zoning rules that may restrict or regulate short-term rentals4.

Safety Standards: While specific requirements may vary, Pennsylvania generally expects short-term rentals to meet basic safety standards. This often includes having functioning smoke alarms, carbon monoxide detectors, and fire extinguishers7.

Fair Housing Laws: Short-term rental operators in Pennsylvania must comply with federal and state fair housing laws, which prohibit discrimination based on race, color, national origin, religion, sex, familial status, and disability.

It's important to note that while these are state-wide considerations, local regulations like those in Tobyhanna Township often impose additional or more stringent requirements. Short-term rental hosts should always check both state and local regulations to ensure full compliance.

Does Tobyhanna Township Strictly Enforce STR Rules?

Tobyhanna Township has implemented some of the strictest short-term rental (STR) regulations in the Pocono Mountains region, and they are known for their rigorous enforcement. The township is not particularly Airbnb-friendly compared to other cities, as evidenced by the numerous challenges hosts face when trying to operate STRs in the area.

The township's enforcement of STR rules is notably stringent, with several key factors contributing to this reputation:

Rigorous Permit Process: Obtaining an STR permit in Tobyhanna Township is a complex and demanding process. Hosts are required to submit extensive documentation, including proof of recent septic system pump-outs and inspections. This level of scrutiny often leads to additional expenses and hurdles for potential hosts.

Occupancy Limits: The township enforces strict occupancy limits based on the International Building Code, which are more restrictive than many other municipalities in the area. This significantly impacts the profitability of STRs, as hosts are limited in the number of guests they can accommodate.

Community Pushback: There is significant opposition to STRs from long-term residents, who have expressed concerns about noise, traffic, and changes to neighborhood character3. This community pressure has led to increased scrutiny of STR applications and stricter enforcement of regulations.

Cap on STR Licenses: As of March 2024, Tobyhanna Township has implemented a cap on the number of STR licenses, limiting them to 12% of the total number of homes in the township. This restriction makes it increasingly difficult for new hosts to enter the market.

Penalties for Non-Compliance: The township imposes severe penalties for operating without a valid permit, including fines ranging from $1,000 to $3,000 per violation, with each day of operation considered a separate violation5.

Despite these strict regulations, some hosts do continue to operate in Tobyhanna Township. However, they often face significant challenges and must be extremely diligent in complying with all regulations. Many hosts have reported difficulties in obtaining permits, particularly due to septic system requirements and occupancy limits.

The overall sentiment among STR operators in Tobyhanna Township is that while it's possible to run a successful STR business, it requires considerable effort, investment, and strict adherence to regulations. The township's approach to STRs is decidedly more restrictive than many other popular vacation destinations, reflecting a clear prioritization of long-term resident concerns over the interests of short-term rental operators.

How to Start a Short-Term Rental Business in Tobyhanna Township

Starting a short-term rental (STR) business in Tobyhanna Township requires careful planning and adherence to local regulations. Here's a comprehensive guide to help you get started:

Research local regulations and zoning laws: Thoroughly review Tobyhanna Township's Short-Term Rental ordinance to ensure your property is in an allowed zone for STRs. Be aware that as of February 2024, the township has implemented a cap on the number of STR licenses, limiting them to 12% of the total number of homes in the township. This restriction makes it crucial to check the availability of permits before proceeding.

Obtain necessary licenses and permits

1. Apply for a Pennsylvania Sales and Use Tax License

2. Obtain a Monroe County Hotel Excise Tax Certificate

3. Complete Tobyhanna Township's STR License application, which includes:

• Property owner information
• 24/7 contact person who can respond to issues
• Parking plan showing all available parking spaces
• Trespass waiver allowing township officials to enter if issues arise
• Proof of insurance

4. Pay the initial license application fee of $600

5. Schedule and pass a township safety inspection

Prepare your property: Ensure your property meets all safety requirements, including:

• Functioning smoke alarms and carbon monoxide detectors
• Fire extinguishers
• Marked exits and evacuation plans
• Adequate lighting and railings

Additionally, consider amenities that are popular in the area, such as outdoor fire pits, BBQ grills, and patio seating.

Set occupancy limits: Tobyhanna Township's occupancy rules allow 2 guests per bedroom plus an additional 2 guests total. Be mindful that even properties with more than 5 bedrooms are still limited to a maximum of 10 guests.

Develop a pricing strategy: Research other listings in your area to understand the market and set competitive rates. Consider seasonal trends, as Tobyhanna Township experiences peak seasons during summer (June-August) and winter for skiing.

Create your listing: Develop an attractive listing that highlights your property's unique features, proximity to local attractions (such as Tobyhanna State Park or Pocono Raceway), and amenities that cater to guests seeking a serene escape or outdoor adventures.

Implement a management system: Establish a robust cleaning and maintenance schedule to ensure your property is always guest-ready. Consider hiring a professional Airbnb management company to assist with marketing, guest communication, cleaning, and maintenance.

Stay compliant: Renew your STR license annually, paying the renewal fee of $500. Stay informed about any changes in local regulations and ensure ongoing compliance to avoid penalties.

Be a good neighbor: Implement strict house rules to minimize disruptions to the community. Provide guests with local tips and recommendations to enhance their experience and set your property apart in this competitive market.

By following these steps and staying diligent in your approach, you can establish a successful short-term rental business in Tobyhanna Township. Remember to always prioritize guest safety, community relations, and regulatory compliance to ensure long-term success in this market.

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

For inquiries about short-term rental regulations and zoning in Tobyhanna Township, the following contacts and resources are available:

Short-Term Rental Administration

1. Renee Rafferty, STR Administrator
2. Email: rrafferty@tobyhannatownshippa.gov
3. Phone: (570) 355-2224

Zoning Department

1. Bethanne Eisler
2. Email: beisler@tobyhannatownshippa.gov
3. Phone: (570) 355-2236

Township Office

1. Address: 105 Government Center Way, Pocono Pines, PA 18350
2. Main Phone: (570) 646-1212

STR Complaint Hotline

For non-emergency STR complaints only: (570) 507-8181

Online Resources

1. Tobyhanna Township Website: https://tobyhannatownshippa.gov
2. Zoning and Short-Term Rental Information: https://tobyhannatownshippa.gov/zoning/

Community Groups and Forums

Short-Term Rental Alliance of Tobyhanna Township (STRATT): This local organization provides resources and advocacy for STR owners in the area.

1. BiggerPockets Forum: There's an active thread discussing STR regulations in Tobyhanna Township, which can be a valuable resource for connecting with other hosts and staying updated on local regulations.
2. Reddit r/Poconos: This subreddit occasionally discusses STR-related topics in the Poconos area, including Tobyhanna Township.

When contacting township officials or participating in community forums, it's advisable to be respectful and professional. Keep in mind that regulations can change, so it's crucial to verify the most current information directly with the township offices. Additionally, given the recent discussions about potential caps on STR licenses, staying engaged with these resources can help you stay informed about any upcoming changes to local regulations.