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

What are Short-Term Rental (Airbnb, VRBO) Regulations in Bucks County, Pennsylvania?

Short-term rentals through platforms like Airbnb and VRBO have become increasingly popular in recent years. However, many counties and municipalities have enacted regulations on these rentals. Bucks County in Pennsylvania is no exception. Here's what you need to know about the short-term rental rules in Bucks County.

Starting a Short-Term Rental Business in Bucks County

To operate a short-term rental in Bucks County, property owners must obtain a permit from their local municipality. For example:

• In Newtown Borough, owners must get a short-term rental permit from the Zoning Officer. The rental is limited to owner-occupied properties.
• Middletown Township only allows short-term rentals with a variance approved by the Zoning Hearing Board.
• In New Hope Borough, a short-term rental permit is required and is only valid for one year. The owner or a designated local contact person must be available to respond within one hour.

Bucks County also requires short-term rental owners to register with the county and file quarterly tax returns. The county imposes a 5% Lodging Room Rental Tax on rentals less than 30 days.

Some Bucks County towns have additional restrictions. For example, Buckingham Township considered banning short-term rentals in certain residential areas after complaints from neighbors about safety and disruption. Tinicum Township has also explored tighter regulations.

Real estate investors looking to purchase short-term rental properties in Bucks County need to carefully research the zoning laws in each municipality. Regulations can vary significantly between different boroughs and townships.

Enforcement of short-term rental rules has been a challenge. In one case, a homeowner in Buckingham Township was ordered to cease operating an Airbnb after neighbor complaints, even though she argued the township's rules were unclear. Legal battles have occurred in other parts of Pennsylvania, with courts often siding with homeowners over municipalities trying to restrict short-term rentals.

Despite the regulatory hurdles, some investors are still finding success with short-term rentals in Bucks County. One property in Scottsdale, Arizona owned by BiggerPockets personalities David Greene and Rob Abasolo is generating over $300,000 per year in revenue. While Scottsdale is not in Bucks County, it shows the profit potential of high-end, well-located vacation rentals.

In summary, Bucks County and its municipalities have various ordinances governing short-term rentals. Owners must obtain permits, register with the county, and collect lodging taxes. Zoning laws can prohibit rentals in some residential areas. Careful due diligence on local regulations is essential before starting an Airbnb business in Bucks County.

Short-Term Rental Licensing Requirements in Bucks County

To legally operate a short-term rental in Bucks County, property owners must obtain a permit from their local municipality and register with the county. Here are the key requirements:

Municipal Permit:

1. Apply for a short-term rental permit with the local Zoning Officer or designated official
2. Provide owner contact information, including a 24/7 phone number
3. Appoint a local "person in charge" to respond to issues within 1 hour if the owner lives more than 20 miles away
4. Specify the number of bedrooms, maximum occupancy, and on-site parking
5. For properties with septic systems, provide a current evaluation and pump receipt
6. Submit copies of the Bucks County Lodging Tax and PA Sales Tax permits
7. Pay permit application fees, which vary by municipality
8. Permits are valid for 1 year and must be renewed annually

County Registration:

1. Register with the Bucks County Treasurer's Office
2. File quarterly returns and remit the 5% Lodging Room Rental Tax
3. If using a booking platform that collects taxes (like Airbnb), note that on the filing
4. Email completed forms to Nina Stephens at the Treasurer's Office

The application process typically takes several weeks, depending on the municipality. Once issued, the short-term rental permit must be prominently displayed inside the rental unit.

Fines and Penalties:

1. Operating without a valid permit is a violation subject to fines
2. In New Hope Borough, the fine is $500 for the first offense and $1000 for subsequent offenses
3. Continued non-compliance may result in the revocation of the rental permit

To avoid penalties, it's critical that Bucks County short-term rental owners obtain the required municipal permit, register with the county, and stay current on their tax filings. For more information, contact your local municipality and the Bucks County Treasurer's Office at 215-348-6244.

Required Documents for Bucks County Short-Term Rentals

To obtain a short-term rental permit in Bucks County, property owners must submit the following documents:

1. Short-Term Rental Permit Application: The application form, available from your local municipality, collects key information about the rental property, owner, and local contact person. It must be completed in full and signed by the owner.
2. Proof of Ownership: Provide a copy of the recorded property deed to verify ownership. If the property is owned by an LLC or other entity, submit formation documents showing the owner's relationship to the entity.
3. Floor Plan: A sketch or diagram of the rental unit's floor plan, indicating the number and location of bedrooms and the maximum occupancy. This helps verify compliance with occupancy limits and building codes.
4. Parking Plan: A site plan or photograph showing the number and location of on-site parking spaces for guests. Sufficient off-street parking must be provided to minimize impacts on neighbors.
5. Septic System Certification (if applicable): For properties not on public sewer, provide a current septic system evaluation certifying proper function and a receipt showing the tank was pumped within the last 3 years. This must be approved by the Bucks County Health Department.
6. Bucks County Room Rental Tax Permit: All short-term rentals must register with the Bucks County Treasurer's Office and obtain a Lodging Room Rental Tax Certificate of Authorization. This allows the county to collect the 5% lodging tax on rentals less than 30 days.
7. Pennsylvania Sales Tax License: Short-term rentals must also register with the state and obtain a Sales and Use Tax Permit. This is required to collect and remit the 6% PA sales tax on lodging.
8. Liability Insurance: Proof of liability insurance coverage of at least $500,000 is required. The insurance policy must cover short-term rental use of the property.
9. Signed Affidavit: The owner must sign an affidavit certifying that the information provided is true and agreeing to abide by all short-term rental regulations.

These documents, along with the permit application and fee, are typically submitted to the municipal Zoning Officer or other designated official. The review and approval process can take several weeks. Once issued, the short-term rental permit must be prominently displayed inside the rental unit.

Failing to obtain a permit or operating a rental without the required documents can result in fines and penalties. By carefully assembling a complete application package, owners can ensure a smoother permitting process and avoid costly delays in launching their short-term rental business.

Bucks County Short-Term Rental Taxes

Short-term rental owners in Bucks County must collect and remit several taxes. Understanding these obligations is critical for compliance and profitability. Here are the key taxes that apply:

Bucks County Hotel Lodging Tax (5%): The county assesses a 5% tax on all stays shorter than 30 days. Proceeds fund tourism promotion. Owners must register with the county, file quarterly returns, and remit taxes to the Treasurer's Office.

Pennsylvania Sales and Use Tax (6%): The state levies a 6% sales tax on lodging rentals less than 30 days. Owners must register for a Sales, Use and Hotel Occupancy Tax License and file returns electronically through the myPATH system.

Some municipalities charge additional local taxes. For example, Allegheny and Philadelphia counties collect an extra 1% hotel tax. Check with your local tax office for details.

If your booking platform like Airbnb collects taxes for you, indicate that on your county tax filing. However, it's ultimately the owner's responsibility to ensure proper collection and remittance.

Possible Deductions and Write-Offs

Short-term rentals often have higher expenses than traditional rentals. Many of these costs are deductible, such as:

1. Cleaning fees
2. Property management fees
3. Booking commissions
4. Maintenance and repairs
5. Supplies (linens, toiletries, etc.)
6. Utilities
7. Insurance
8. Depreciation

Carefully tracking and documenting these expenses is essential for maximizing deductions. Owners who materially participate in their rental business may be able to deduct losses against other income, but passive loss rules apply.

Depreciation strategies like cost segregation studies can provide significant deductions. However, short-term rentals are depreciated over 39 years (commercial property) vs. 27.5 years for residential rentals.

Consulting a tax professional is recommended to optimize your tax strategy and ensure proper reporting of rental income and expenses. With proactive planning, short-term rental owners can minimize taxes and enhance cash flow.

Pennsylvania Wide Short-Term Rental Rules

While most short-term rental regulations in Pennsylvania are determined at the county and municipal levels, there are a few state-wide rules that Bucks County hosts need to be aware of:

1. Pennsylvania Hotel Occupancy Tax: The state levies a 6% hotel occupancy tax on all stays shorter than 30 days, the same rate as the state sales tax. Bucks County Airbnb operators must collect and remit this tax to the Pennsylvania Department of Revenue. Hosts need to register for a Hotel Occupancy Tax account at mypath.pa.gov before collecting the tax from guests.
2. Local Sales Tax: Pennsylvania also imposes a 1% local sales tax on short-term lodging rentals. This is in addition to the 6% state hotel occupancy tax and any county-level taxes. Bucks County hosts are responsible for collecting and remitting this tax as well.
3. Tax Remittance: Short-term rental income and occupancy taxes can be reported and paid electronically through the myPATH system. Rental income under 30 days should be reported on Tax Schedule C, while longer rentals use Schedules E, R, or Royalty Income.
4. Liability Insurance: While not legally mandated state-wide, it is highly recommended that Bucks County short-term rental operators carry robust liability insurance, typically at least $500,000 to $1 million in coverage. Many municipalities require proof of liability insurance as part of the permitting process.
5. Safety Requirements: Pennsylvania's Uniform Construction Code sets standards for smoke alarms, carbon monoxide detectors, fire extinguishers, and other safety equipment in rental properties. While enforcement is at the local level, Bucks County hosts must ensure their rentals meet these state-wide safety requirements.

Beyond these state-wide rules, the bulk of short-term rental regulation in Pennsylvania happens at the county and municipal levels. Bucks County and its townships, boroughs, and cities have their own zoning laws, permit requirements, occupancy limits, and tax obligations that hosts must comply with. Careful research into local ordinances is essential for Bucks County Airbnb operators.

Does Bucks County Strictly Enforce STR Rules?

Based on discussions among short-term rental hosts on platforms like BiggerPockets and Reddit, Bucks County appears to be taking an increasingly strict stance on enforcing its STR regulations. Compared to some other Pennsylvania counties, Bucks is less "Airbnb friendly" and more proactive about cracking down on non-compliant rentals.

There have been multiple reports of Bucks County hosts receiving cease-and-desist letters from their municipalities after neighbor complaints. In one case in Buckingham Township, a host was ordered to immediately stop renting on Airbnb, forcing her to cancel several reservations and forfeit nearly $5,000 in bookings.

The county's tougher approach seems to be driven by concerns about safety, neighborhood character, and housing affordability. Existing zoning laws often don't address short-term rentals, so places like Buckingham and Tinicum townships are working to tighten their ordinances to explicitly restrict STRs in residential areas.

Despite the legal gray area, Pennsylvania courts have generally sided with homeowners over municipalities trying to bar short-term rentals under current laws. This has pushed more Bucks County townships to update their zoning codes.

However, the lack of clarity has also emboldened some hosts to continue operating STRs without permits or in violation of local rules. On Reddit, Airbnb hosts discuss strategies for evading detection, such as booking longer-term stays to get around nightly limits.

This has created an adversarial dynamic in some neighborhoods, with residents going to town meetings or taking to social media to report illegal rentals and pressure officials to take action. Condo and apartment complexes are also fighting back, posting signs threatening fines and eviction for STRs.

Overall, while Bucks County hosts can still find loopholes to list on Airbnb and other sites, the risks are rising as townships strengthen their regulations and enforcement. The county appears committed to preserving residential character and preventing the unchecked proliferation of STRs seen in more tourist-driven markets. Hosts looking to get into the short-term rental game in Bucks should be prepared to navigate an increasingly restrictive and contentious environment.

How to Start a Short-Term Rental Business in Bucks County

Starting a successful short-term rental business in Bucks County requires careful planning and execution. Here are the key steps to launch your STR venture:

1. Research Local Regulations: Before investing in a rental property, thoroughly investigate the short-term rental laws in your target municipality. Zoning codes, permit requirements, and tax obligations vary widely across Bucks County. Consult with the local zoning office, attend town meetings, and connect with other STR hosts to understand the regulatory landscape.
2. Obtain Required Permits: Once you've confirmed that STRs are allowed in your chosen location, apply for the necessary permits from your municipality and the county. This typically includes a zoning permit, proof of ownership, floor plans, parking arrangements, and septic certification (if applicable). Start the process early, as approvals can take several weeks.
3. Register with Tax Authorities: Short-term rentals in Pennsylvania are subject to state and local taxes. Register for a Sales, Use and Hotel Occupancy Tax License with the Department of Revenue, and a Lodging Room Rental Tax Certificate of Authorization from the Bucks County Treasurer's Office. Set up processes to collect and remit taxes accurately.
4. Prepare Your Property: Ensure your rental unit is safe, clean, and well-appointed. Install smoke detectors, carbon monoxide alarms, and fire extinguishers to meet building codes. Furnish the space with comfortable furniture, quality linens, and modern amenities. Consider hiring a professional photographer to showcase your rental's best features.
5. Create House Rules: Establish clear house rules to set expectations for guests and minimize disruptions to neighbors. Cover policies on noise, parking, occupancy limits, pets, smoking, and events. Communicate these rules in your listing and provide a printed copy in the rental unit.
6. Automate and Systematize: Streamline your STR operations with technology tools like smart locks, noise monitors, and automated messaging. Consider using a property management platform to handle bookings, cleaning, and maintenance. Build a network of reliable service providers to ensure consistent quality.
7. List on Booking Platforms: Create compelling listings on popular STR platforms like Airbnb and VRBO. Craft an attention-grabbing headline, write a detailed description, and use high-quality photos. Set competitive rates based on market research and adjust your pricing strategy based on demand.
8. Promote Your Listing: Drive bookings through targeted marketing. Leverage social media, online travel forums, and local tourism websites to reach potential guests. Encourage satisfied customers to leave reviews and offer incentives for repeat stays or referrals.
9. Provide Excellent Customer Service: Respond promptly to guest inquiries, provide clear check-in instructions, and be available to address any issues that arise during stays. Go above and beyond with thoughtful touches like local recommendations or welcome baskets. Solicit feedback and continuously improve the guest experience.
10. Comply and Stay Informed: Keep meticulous records of your rental income and expenses for tax purposes. Stay up-to-date on any changes to local STR regulations or tax requirements. Consider joining a local host community or industry association to share best practices and advocate for fair policies.

By following these steps and remaining adaptable, you can build a thriving short-term rental business in Bucks County. While the regulatory environment may be challenging, hosts who prioritize compliance, quality, and customer service can achieve long-term success in this dynamic market.

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

For questions about short-term rental regulations and zoning in Bucks County, here are the key contacts and resources:

Bucks County Planning Commission

The Bucks County Planning Commission assists municipalities with land use practices and policies. Contact them for guidance on county-wide STR regulations.

1. Phone: (215) 345-3400
2. Email: bcpc@buckscounty.org
3. Address: The Almshouse, Neshaminy Manor Center, 1260 Almshouse Road, Doylestown, PA 18901

Bucks County Treasurer's Office

The Treasurer's Office handles registration and tax collection for short-term rentals. Contact them about the 5% Lodging Room Rental Tax.

• Phone: (215) 348-6244
• Email: Nina Stephens at nstephens@buckscounty.org
• Address: 55 East Court Street, Administration Building, 3rd Floor, Doylestown, PA 18901

Municipal Zoning Offices

Since zoning laws vary by municipality, contact your local zoning department for specific STR requirements. For example:

Buckingham Township Building & Zoning Department

• Phone: (215) 794-8836
• Email: Richard G. Myers, Zoning Officer, at rmyers@buckinghampa.org

Newtown Borough Zoning Officer

• Phone: (215) 968-2109 ext. 201
• Email: zoning@boroughofnewtown.com

Useful Communities and Resources

Connect with other Bucks County STR hosts and access helpful resources through these groups and websites:

• Bucks County Short-Term Rental Alliance (private Facebook group): https://www.facebook.com/groups/buckscountystr/
• Bucks County Airbnb Hosts Forum on BiggerPockets: https://www.biggerpockets.com/forums/530/topics/606091-starting-out-in-bucks-county-pa
• Bucks County Host Community on Airbnb: https://community.withairbnb.com/t5/Hosting/Bucks-County-PA-Hosts/td-p/1293417
• Short Term Rental University - Bucks County: https://shorttermrentaluniversity.com/bucks-county/

By contacting these offices and engaging with the local host community, short-term rental operators can get the most current information on regulations and connect with experienced hosts for advice on running a successful STR business in Bucks County.

What Do Airbnb Hosts in Bucks County on Reddit and Bigger Pockets Think about Local Regulations?

Discussions on platforms like Reddit and BiggerPockets provide valuable insights into how Bucks County hosts are navigating the complex short-term rental landscape. Here are some key takeaways from local hosts:

Strict Enforcement Actions

On the Bucks County subreddit, one host shared their experience receiving a cease-and-desist letter in Buckingham Township after a neighbor complaint. The township ordered them to immediately stop renting on Airbnb, forcing the cancellation of several reservations and a loss of nearly $5,000 in bookings. This highlights the county's increasingly proactive stance on STR compliance.

Primary Residence Restrictions

A Pennsylvania host on BiggerPockets noted that their town in north central PA has a primary residence restriction, requiring the STR property to be owner-occupied. As a result, they are looking to neighboring areas for future investment properties. This underscores the importance of thoroughly researching municipal zoning laws before purchasing an STR.

Lack of Clarity Breeds Non-Compliance

In a thread on the Airbnb community forum, Bucks County hosts discussed strategies for evading detection, such as booking longer stays to circumvent nightly rental limits. Some justified the workarounds by pointing to the lack of clarity in current laws. However, others cautioned that operating in a "gray area" is risky as townships work to close loopholes with stricter regulations.

Rising Tensions with Residents and HOAs

Bucks County residents are increasingly vocal in their opposition to illegal STRs, as evidenced by heated discussions on local Facebook groups and Nextdoor threads. Hosts report neighbors threatening to report non-compliant rentals to township officials. Condo and apartment complexes are also cracking down, with one host on Reddit describing signs in their building threatening fines and eviction for STRs.

Advice for Prospective Hosts

Experienced Bucks County hosts on BiggerPockets stress the importance of due diligence before starting an STR business. They recommend carefully reviewing zoning laws, securing proper permits, and maintaining open communication with neighbors to avoid conflicts. Hosts also suggest joining local STR alliances or meetup groups to stay informed on regulatory changes and share best practices.

While the regulatory environment poses challenges, Bucks County hosts who prioritize compliance and community relations can still find success with short-term rentals. However, the county's tougher stance on enforcement means hosts must remain vigilant and adaptable to stay ahead of the ever-evolving STR landscape.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.