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Chestnuthill Township, Pennsylvania Short-Term Rental Regulation: A Guide For Airbnb Hosts
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Disclaimer: This article is for informational purposes only and not legal advice. Regulations could have changed since this article was published. Check local zoning authorities and consult a legal professional before making any decisions.
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Starting a Short-Term Rental Business in Chestnuthill Township
Chestnuthill Township, Pennsylvania, has implemented specific regulations for short-term rentals (STRs) such as Airbnb and VRBO. These rules aim to balance the interests of property owners, visitors, and long-term residents. If you're considering starting a short-term rental business in Chestnuthill Township, here's what you need to know:
License Requirement: All short-term rental owners must obtain a license from the Chestnuthill Township Zoning Officer. Operating without a license is a violation of the township ordinance.
Annual Renewal: Short-term rental licenses are valid for one year and must be renewed annually. Any changes to the rental conditions governed by the ordinance also require license renewal.
Zoning Restrictions: Short-term rentals are only permitted in general commercial zones. Properties in residential zones are no longer allowed to operate as short-term rentals.
Occupancy Limits: Overnight occupancy is limited to two persons per bedroom. The maximum number of day guests allowed at any time is 50% of the maximum overnight occupancy.
Bedroom Limitations: The number of bedrooms permitted for a short-term rental cannot exceed the number approved on the property's sewage permit. Properties without a sewage permit on record are limited to three bedrooms unless proof of adequate sewage disposal is provided.
Safety Requirements: All short-term rental units must be equipped with smoke alarms in each sleeping room, outside each sleeping area, and on every additional story. Carbon monoxide alarms are required in units with fuel-fired appliances or attached garages.
Parking Regulations: The property must have adequate off-street parking for guests. Parking on lawns, vegetated areas, or along public streets is prohibited.
Noise and Conduct: Short-term rental occupants and guests are prohibited from engaging in disorderly conduct or creating unreasonable noise disturbances.
Information Packet: Owners must provide guests with a packet containing township requirements and post a notice with essential information, including contact details, occupancy limits, and local regulations.
Insurance Requirement: Short-term rental owners must maintain a minimum of $500,000 in liability insurance coverage.
It's worth noting that the short-term rental landscape in the Poconos region, which includes Chestnuthill Township, has been evolving. Some areas have seen a significant drop in Airbnb rentals due to new regulations. However, Chestnuthill Township seems to be open to considering new short-term rental applications, as evidenced by a recent conditional use hearing for a property at 206 Merwinsburg Road in Effort.
For those interested in starting a short-term rental business in Chestnuthill Township, it's crucial to stay informed about the latest regulations and to work closely with township officials to ensure compliance. The township's approach aims to balance the economic benefits of short-term rentals with the need to maintain community character and address residents' concerns.
Remember that regulations can change, so it's advisable to check with the Chestnuthill Township office for the most up-to-date information before investing in a short-term rental property.
Short-Term Rental Licensing Requirement in Chestnuthill Township
In Chestnuthill Township, Pennsylvania, operating a short-term rental (STR) without a license is a violation of the township ordinance. Here's a comprehensive list of requirements for obtaining a short-term rental license:
Application Submission: Owners must submit a detailed application to the Chestnuthill Township Zoning Officer.
Owner Information: The application must include the owner's name, address, telephone number, and email address.
Local Contact: If the owner doesn't have a managing agency, they must provide a 24-hour telephone number. Otherwise, they need to provide details of a managing agency, agent, or local contact person.
Property Details: Floor plans of the rental unit, including total habitable floor space and number of bedrooms, must be submitted.
Multiunit Information: For multiunit structures, specify the total number of units and how many are used as short-term rentals.
Parking Plan: A site plan showing the location and number of on-site parking spaces is required.
Sewage System Information: Provide details about the sewage disposal system, including its location, approximate age, and capacity. An evaluation from a pumper/hauler certifying proper function is necessary.
Tax Certificates: Include copies of the current Monroe County hotel room excise tax certificate and Pennsylvania sales and use tax license.
Signatures: Both the owner and the local managing agent or contact person must sign the application.
Trespass Waiver: The owner must sign a waiver allowing access to the property for inspection by Enforcement Officers.
Proof of Ownership: Include a copy of the current recorded deed for the property.
Insurance: Provide evidence of at least $500,000 in liability insurance covering short-term rentals for the full license term.
Safety Equipment: The property must be equipped with smoke alarms in each sleeping room, outside sleeping areas, and on every additional story. Carbon monoxide alarms are required in units with fuel-fired appliances or attached garages.
Submission and Fees:
- Submit the application and required documents to the Chestnuthill Township Zoning Officer.
- License fees are payable to Chestnuthill Township upon filing the application.
- The fee amount is established by resolution of the Board of Supervisors.
Processing Time:
While the exact processing time isn't specified, licenses are valid for one year and must be renewed annually or when any conditions of the short-term rental change.
Fines and Penalties:
Operating without a license is considered a violation. Penalties for violations include:
- Fines ranging from $100 to $1,000 per violation.
- Potential imprisonment to the extent allowed by law for summary offenses.
- Each day a violation continues is considered a separate violation.
- The township may seek equitable relief, including injunctions.
- License revocation or denial of renewal for uncured or repeated violations.
It's crucial for property owners to comply with these requirements to avoid penalties and ensure the legal operation of their short-term rentals in Chestnuthill Township.
Required Documents for Chestnuthill Township Short-Term Rentals
When applying for a short-term rental license in Chestnuthill Township, property owners must submit several documents to ensure compliance with local regulations. Here's a list of the required documents, along with explanations of their purpose:
- Completed Application Form: This form, available from the Chestnuthill Township Zoning Officer, includes basic information about the property and owner.
- Floor Plans: Detailed floor plans of the rental unit, showing total habitable floor space and the number of bedrooms. This helps verify compliance with occupancy limits.
- Site Plan: A diagram showing the location and number of on-site parking spaces. This ensures adequate off-street parking for guests.
- Sewage System Evaluation: An assessment from a certified pumper/hauler confirming the proper functioning of the sewage disposal system. This document should include the system's location, approximate age, and capacity.
- Tax Certificates: Copies of the current Monroe County hotel room excise tax certificate and Pennsylvania sales and use tax license. These prove compliance with local and state tax requirements.
- Trespass Waiver: A signed document allowing Enforcement Officers access to the property for inspection purposes.
- Property Deed: A copy of the current recorded deed establishing ownership of the property.
- Insurance Declaration: Evidence of liability insurance coverage of at least $500,000 for the duration of the license term, specifically covering short-term rentals.
- Managing Agency Information: If applicable, provide details of the managing agency, agent, or local contact person, including a 24-hour telephone number.
- Multiunit Information: For properties with multiple units, specify the total number of units and how many are used as short-term rentals.
- Signed Agreements: Both the owner and the local managing agent or contact person must sign the application.
- Sewage Permit: For rentals advertising more than five bedrooms, provide a sewage disposal system permit or approval from the Sewage Enforcement Officer.
These documents serve to ensure that short-term rentals in Chestnuthill Township meet safety standards, comply with local regulations, and maintain accountability for both owners and guests. Property owners can obtain most of these documents through relevant local authorities, certified professionals, or their own records.
Remember that requirements may change, so it's advisable to check with the Chestnuthill Township Zoning Officer for the most up-to-date information when preparing your application.
Chestnuthill Township Short-Term Rental Taxes
Short-term rental operators in Chestnuthill Township, Pennsylvania, are subject to several taxes at the state and local levels. 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 state-level tax is set at 6% of the total rental fee, including cleaning fees. It applies to all short-term rentals lasting less than 30 days.
- Local Hotel Tax: In addition to the state tax, Chestnuthill Township, being part of Monroe County, may impose a local hotel tax. While the exact rate for Chestnuthill Township isn't specified in the search results, nearby Mount Pocono in Monroe County charges a 3% Hotel Excise Tax.
- Pennsylvania Sales Tax: Short-term rentals are subject to the state sales tax of 6% on the total rental fee, including any cleaning fees charged.
- Local Sales Tax: While not applicable in Chestnuthill Township, it's worth noting that some Pennsylvania counties, such as Allegheny and Philadelphia, charge an additional 1% local sales tax.
- Income Tax: Rental income is subject to state income tax in Pennsylvania. Landlords must report all earnings from rental properties on their tax returns.
In total, short-term rental operators in Chestnuthill Township can expect to collect and remit approximately 15% in taxes (6% state hotel occupancy tax, 3% local hotel tax, and 6% state sales tax), plus any applicable income tax on their rental earnings.
Possible Write-offs and Deductions:
Short-term rental operators may be eligible for several deductions to reduce their tax liability:
- Utilities: Expenses for electricity, water, gas, and internet are deductible, but only for the portion used by guests.
- Cleaning and maintenance: Costs for cleaning between guest stays, laundry services, and cleaning supplies are fully deductible.
- Insurance: Both homeowner's and rental insurance policies covering the rental property are deductible.
- Advertising and listing fees: Any fees paid to platforms like Airbnb or other marketing channels are deductible.
- Supplies and amenities: Items provided to guests such as toiletries, linens, and kitchenware are deductible.
- Repairs and maintenance: Costs for fixing leaks, replacing doors, or other necessary property upkeep are deductible.
- Mortgage interest: A portion of the mortgage interest can be deducted based on rental usage.
- Property taxes: These can be partially deducted based on the percentage of the property used for rentals.
- Depreciation: You may be able to deduct for the wear and tear of your property over time.
It's important to keep detailed records of all expenses related to your short-term rental business to support these deductions. Consulting with a tax professional familiar with short-term rental regulations in Pennsylvania can help ensure you're maximizing your deductions while remaining compliant with all tax laws.
Pennsylvania Wide Short-Term Rental Rules
While Pennsylvania does not have comprehensive state-wide legislation specifically targeting short-term rentals, there are several state-level requirements that affect hosts in Chestnuthill Township and across the commonwealth:
- Hotel Occupancy Tax: Pennsylvania imposes a 6% hotel occupancy tax on all short-term rentals lasting less than 30 days. This tax applies to the total rental fee, including any cleaning fees charged.
- Sales and Use Tax: Short-term rentals are subject to the state sales tax of 6% on the total rental fee, including cleaning fees.
- Income Tax Reporting: Rental income must be reported on state income tax returns. Hosts are required to keep accurate records of their rental income and expenses.
- Third-Party Booking Agents: If a host exclusively uses third-party booking platforms (like Airbnb or VRBO) for all their rentals, they may not need to obtain a separate Sales, Use, and Hotel Occupancy Tax license. The booking platforms are responsible for collecting and remitting these taxes on behalf of the host.
- Insurance Requirements: While not a state-wide mandate, many municipalities in Pennsylvania, including Chestnuthill Township, require short-term rental operators to maintain a minimum amount of liability insurance coverage.
- Safety Standards: Although specific requirements may vary by municipality, Pennsylvania generally expects all rental properties to meet basic safety standards, including functioning smoke detectors and carbon monoxide alarms where applicable.
- Accessibility: Short-term rentals must comply with state and federal accessibility laws, which may require certain accommodations for guests with disabilities.
- Fair Housing Laws: Pennsylvania's fair housing laws apply to short-term rentals, prohibiting discrimination based on race, color, national origin, religion, sex, familial status, or disability.
- Property Rights: State law recognizes that property owners have the right to rent out their properties, but this right is subject to local zoning and other regulations.
- Consumer Protection: Short-term rentals are subject to Pennsylvania's consumer protection laws, which require truthful advertising and fair business practices.
While these state-wide rules provide a framework, it's crucial for hosts in Chestnuthill Township to also comply with local ordinances, which often impose additional, more specific requirements for short-term rental operations.
Does Chestnuthill Township Strictly Enforce STR Rules?
Chestnuthill Township takes a relatively strict approach to enforcing short-term rental (STR) regulations compared to some other areas. The township is not particularly Airbnb-friendly, and operating STRs without proper compliance is risky.
The township's ordinance, adopted in 2019, requires all STR owners to obtain a license from the zoning officer. This process involves submitting detailed documentation, including floor plans, site plans, proof of insurance, and other requirements. The ordinance also restricts STRs to general commercial zones, effectively prohibiting them in residential areas.
Enforcement of these regulations appears to be active and ongoing. At a township meeting, Chairman Carl Gould II stated, "This is a work in progress. Those units did not get up and running overnight, and we will not get them shut down overnight. All I can tell you is that they are on the radar here." This indicates a commitment to addressing non-compliant STRs, albeit gradually.
The township's approach to STRs is notably stringent. For instance, the ordinance sets specific limits on occupancy, parking, and guest behavior. It also requires owners to promptly address any disturbances caused by their guests, showing a clear intent to maintain community standards and quality of life for residents.
Despite the strict regulations, some hosts do attempt to operate in Chestnuthill Township. However, this is not without significant risk. The consequences of non-compliance are severe, including potential fines and the revocation of operating privileges. The township's ordinance explicitly states that operating an STR without a license is a violation, subject to penalties.
While some hosts on platforms like BiggerPockets and Reddit have discussed potential "workarounds," such as only accepting bookings for 30 days or more to avoid classification as a short-term rental, the general consensus is that Chestnuthill Township is not a favorable market for Airbnb-style rentals compared to areas with more relaxed regulations.
How to Start a Short-Term Rental Business in Chestnuthill Township
Starting a short-term rental business in Chestnuthill Township requires careful planning and adherence to local regulations. Here's a step-by-step guide to help you get started:
Research Zoning Regulations
First, verify that your property is located in a general commercial zone, as Chestnuthill Township only allows short-term rentals in these areas. Contact the Township Zoning Officer to confirm your property's zoning status and discuss any potential restrictions or requirements specific to your location.
Obtain a Short-Term Rental License
Apply for a short-term rental license from the Chestnuthill Township Zoning Officer. This process involves submitting a detailed application that includes:
- Your personal information and contact details
- Floor plans of the rental unit
- A site plan showing parking spaces
- Proof of liability insurance (minimum $500,000 coverage)
- Sewage system information and evaluation
- Tax certificates
- A signed trespass waiver for property inspections
Prepare Your Property
Ensure your property meets all safety standards and township requirements. This includes:
- Installing smoke alarms in each sleeping room and outside sleeping areas
- Providing carbon monoxide alarms if you have fuel-fired appliances or an attached garage
- Limiting occupancy to two persons per bedroom
- Setting up adequate off-street parking
Create a Management Plan
Develop a comprehensive management plan that addresses:
- Guest check-in and check-out procedures
- Cleaning and maintenance schedules
- A system for addressing guest concerns or emergencies
- Strategies for ensuring guest compliance with township rules
Set Up Tax Accounts
Register for the necessary tax accounts, including:
- Pennsylvania Hotel Occupancy Tax
- Local Hotel Tax (if applicable)
- Pennsylvania Sales Tax
- State Income Tax reporting for rental income
Develop House Rules and Information Packet
Create a clear set of house rules and an information packet for guests that includes:
- Maximum occupancy limits
- Parking instructions
- Noise restrictions
- Trash disposal methods
- Emergency contact information
- Local attractions and amenities
List Your Property
Once you've obtained all necessary permits and prepared your property, you can list it on short-term rental platforms. Be sure to accurately represent your property and clearly communicate any township-specific rules or restrictions to potential guests.
Implement a Booking and Payment System
Set up a reliable system for managing bookings and processing payments. Consider using established platforms that handle these aspects or invest in specialized software if you plan to manage bookings independently.
Establish a Marketing Strategy
Develop a marketing plan to attract guests. This might include:
- Professional photography of your property
- Creating a website or social media presence
- Offering competitive rates based on local market research
- Highlighting unique features of your property or location
Monitor and Adapt
Regularly review your business performance and guest feedback. Stay informed about any changes to local regulations and be prepared to adapt your operations as necessary to remain compliant and successful.
Remember, starting a short-term rental business in Chestnuthill Township requires ongoing commitment to compliance and guest satisfaction. By following these steps and maintaining open communication with township officials, you'll be well-positioned to run a successful and legally compliant short-term rental operation.
Who to Contact in Chestnuthill Township about Short-Term Rental Regulations and Zoning?
For information about short-term rental regulations and zoning in Chestnuthill Township, the following contacts are available:
Zoning Officer
- Phone: 570-992-7247
- The Zoning Officer is responsible for issuing short-term rental licenses and can provide detailed information about the application process and requirements.
Township Manager - David R. Albright
- Email: dalbright@chestnuthilltwp-pa.gov
- As the Township Manager, Mr. Albright can provide general information about the township's policies on short-term rentals.
Planning/Zoning Director - Matthew Neeb
- Email: mneeb@chestnuthilltwp-pa.gov
- Mr. Neeb can offer insights into zoning regulations and how they apply to short-term rentals.
Planning/Zoning Assistant - Karen Hayes
- Email: khayes@chestnuthilltwp-pa.gov
- Ms. Hayes can assist with general inquiries about zoning and short-term rental regulations.
Chestnuthill Township Municipal Building
- Address: 271 Route 715, Brodheadsville, PA 18322
- Phone: 570-992-7247
- Fax: 570-992-2225
- This is the main point of contact for all township-related matters, including short-term rental regulations.
For hosts looking to connect with others or find additional resources, the following communities and groups may be helpful:
Pocono Mountains Visitors Bureau: This organization supports the tourism industry in the Poconos and may provide valuable insights for short-term rental hosts.
Reddit r/Poconos: This subreddit often discusses short-term rental issues in the Pocono region, including Chestnuthill Township.
BiggerPockets Forums: While not specific to Chestnuthill Township, these forums often have discussions about short-term rental regulations and strategies in various locations.
Pennsylvania Association of Realtors: This organization may provide resources and updates on short-term rental regulations affecting the state.
Remember that regulations can change, so it's always best to verify current information directly with the township officials. When contacting these resources, be prepared with specific questions about your property and intended use to get the most accurate and relevant information.
What Do Airbnb Hosts in Chestnuthill Township on Reddit and Bigger Pockets Think about Local Regulations?
While there aren't many specific discussions about Chestnuthill Township on Reddit or BiggerPockets, hosts in nearby areas of the Poconos have shared their experiences with short-term rental regulations. Here are some insights from these platforms:
Towamensing Trails Experience:
A host on Reddit shared their experience operating a short-term rental in Towamensing Trails, a nearby community. They mentioned that the STR process is challenging but doable. The annual fees are $600 for STR licensing on top of $600 regular dues. They also described an antiquated system for guest registration, requiring in-person visits to the office and cash payments for guest packets.
Indian Mountain Lakes Perspective:
Another Reddit user living in Indian Mountain Lakes (IML) commented on the HOA's approach to short-term rentals. They mentioned that while the HOA is generally accepting of Airbnbs, there are registration fees and strict community rules that guests must follow. The user also noted issues with long wait times at the community gate during peak rental periods.
Pocono Region Trends:
A BiggerPockets forum user observed a significant drop in short-term rental prices and occupancy rates in the Pocono region over the past year compared to during the COVID-19 pandemic. They suggested that potential investors should be cautious about the changing market conditions.
Zoning and Regulation Concerns:
One host on Reddit expressed concern about potential additional STR regulations coming from both Monroe and Carbon counties, as well as individual townships. They noted that these regulations could impact the long-term viability of STR investments in the area.
While these experiences are not specific to Chestnuthill Township, they provide insight into the challenges and considerations faced by short-term rental operators in the broader Pocono region. Hosts in Chestnuthill Township may face similar issues and should stay informed about local regulations and community sentiments.
🤔 Confused? Get your vacation rental license, tax registration and inspections done for you
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Reveal any property's Airbnb and Long-Term rental profitability
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