Erie County, New York Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Erie County, New York?

Short-term rentals like Airbnb and VRBO have become increasingly popular in Erie County, New York in recent years. However, local governments are starting to regulate these rentals more closely. Here's an overview of the current rules and regulations for STRs in Erie County.

Starting a Short-Term Rental Business in Erie County

As of January 4, 2024, a new law requires STR operators in Erie County to:

• Register with the Erie County Comptroller's Office
• Collect a 3% occupancy tax from guests
• File quarterly or annual occupancy tax returns, even if no tax was collected

The county expects to reach tax collection agreements with the short-term rental platforms like Airbnb and VRBO. But until then, hosts are solely responsible for tax compliance. STRs are also subject to state lodging taxes, so operators must register with the NY Dept of Taxation and Finance as well.

The Town of Clarence has its own permitting process. STR applicants must certify:

1. They own the property
2. Smoke detectors and fire extinguishers meet state code
3. Floor plans show parking, guest access points
4. Adequate off-street parking is available
5. Emergency contacts and other info will be posted onsite

STRs are prohibited in certain residential zones in Clarence. Buffalo and Amherst also have STR registration and inspection requirements.

The new county tax is estimated to generate $1-2 million annually from roughly 2,000 STRs. Proceeds will mainly go to Visit Buffalo Niagara for tourism promotion. The goal is to level the playing field with hotels, which were already paying occupancy taxes of 3-5%.

Some legislators have proposed exemptions for owner-occupied rentals or stays over 30 days. There are also calls to dedicate some tax revenue to affordable housing. But the law passed in December 2023 did not include any changes from the original proposal.

Enforcement may be a challenge, as the county doesn't have a full list of STRs. Unregistered operators could face penalties of $100/day. The county plans to use existing databases and agreements with platforms to identify STRs.

Anecdotally, STR investors and hosts on forums like BiggerPockets and Reddit have discussed opportunities and experiences with vacation rentals in the region. One host in Buffalo reported charging around $100/night for a unit they normally rent for $750/month.

So in summary, Erie County's new regulations add some costs and red tape for STR operators. But with strong demand from tourists and proximity to destinations like Niagara Falls, the short-term rental market still appears to have potential for growth. Hosts will need to stay on top of evolving state and local requirements.

Short-Term Rental Licensing Requirements in Erie County

To legally operate a short-term rental in Erie County, property owners must obtain a permit from the Erie County Comptroller's Office. The application process involves the following steps:

Submit a completed Certificate of Registration within 3 days of opening the STR business. The form can be downloaded from the Erie County Comptroller's website or requested by emailing ErieCountyBedTax@erie.gov.

For properties with multiple STR units, file the Certificate of Registration for the principal place of business. Include a list of all other STR locations in Erie County with the same information as on the Certificate of Registration.

Mail the completed Certificate of Registration to:

Erie County Comptroller's Office
95 Franklin Street, Room 1100
Buffalo, NY 14202

Upon approval, the Comptroller's Office will issue a Certificate of Authority for each STR location. This certificate must be prominently displayed at the rental property.

STR operators must collect a 3% occupancy tax from guests for properties with 30 rooms or less, or 5% for properties with more than 30 rooms. These taxes are filed quarterly (due on March 20, June 20, Sept 20, Dec 20) or annually (due June 20) with the Comptroller's Office using the appropriate tax return form.

The initial application fee is $100, with a $50 renewal fee required annually.

Some municipalities within Erie County have additional permitting requirements. For example, in the Town of Clarence, STR applicants must also certify that:

1. They own the rental property
2. Smoke detectors and fire extinguishers meet NY state fire code
3. Floor plans show the location of parking, guest access points, and fire exits
4. Adequate off-street parking is available for the advertised number of guests
5. Emergency contacts and other required information will be visibly posted onsite

STRs are prohibited in certain residential zones in Clarence. Buffalo and Amherst also have their own STR registration and inspection requirements.

Penalties for operating an unlicensed STR in Erie County can be steep. Unregistered operators may be fined $100 per day by the county. The City of Buffalo recently increased their fine for unlicensed STRs from $75 to $500. With active enforcement efforts underway, it's crucial for hosts to stay compliant with all state and local regulations.

The licensing process typically takes 1-2 weeks in Erie County, though timelines may vary if additional municipal permits are required. STR operators are encouraged to begin the registration process well in advance of launching their rental business. By following the proper steps to obtain required permits and pay occupancy taxes, hosts can avoid costly penalties while contributing to the region's growing tourism economy.

Required Documents for Erie County Short-Term Rentals

To legally operate a short-term rental in Erie County, property owners must obtain and submit the following documents:

Certificate of Registration: This form must be filed with the Erie County Comptroller's Office within 3 days of opening the STR business. It provides basic information about the rental property and owner. The Certificate of Registration can be downloaded from the Comptroller's website or requested by email. For properties with multiple STR units, file one form for the principal place of business and include a list of all other STR locations in the county.

Certificate of Authority: After receiving a completed Certificate of Registration, the Comptroller's Office will issue this certificate for each STR location. The Certificate of Authority must be prominently displayed at the rental property to show compliance with county regulations.

Quarterly or Annual Tax Return Forms: STR operators must collect a 3% occupancy tax (for properties with 30 rooms or less) or 5% tax (for properties with more than 30 rooms) from guests. These taxes are filed quarterly (due on March 20, June 20, Sept 20, Dec 20) or annually (due June 20) using the appropriate tax return form, available on the Comptroller's website. Returns must be filed even if no tax was collected during the period.

Some municipalities have additional documentation requirements. For example, in the Town of Clarence, the Short-Term Rental Application also requires:

1. Certification of property ownership
2. Floor plans showing parking, guest access points, fire exits
3. Posting of emergency contacts, such as property managers or co-hosts, and other required info onsite

STRs are prohibited in certain residential zones in Clarence. The City of Buffalo also requires STRs to obtain a Short-Term Rental Certificate by submitting an application to the Permit and Inspection Services Department.

By obtaining and prominently displaying all required permits and certificates, STR operators can demonstrate compliance with Erie County's registration, tax collection, and safety regulations. Failure to file the proper documents can result in fines of $100 per day or more.

Erie County Short-Term Rental Taxes

Short-term rental operators in Erie County must collect and remit the following taxes:

1. Erie County Occupancy Tax: As of January 2024, Erie County charges a 3% occupancy tax on all STR revenue for properties with 30 rooms or less. For STRs with more than 30 rooms, the rate is 5%. This new tax is expected to generate $1-2 million annually from roughly 2,000 vacation rentals in the county. Proceeds will primarily go to Visit Buffalo Niagara for tourism promotion.
2. New York State and Erie County Sales Tax: STR hosts must also collect and remit the combined 8.75% sales tax, which consists of the 4% New York State sales tax and the 4.75% Erie County sales tax. These taxes apply to all STR revenue.

Hosts listing their properties on platforms like Airbnb and Vrbo may have the occupancy taxes collected and remitted on their behalf. However, those renting independently are responsible for charging, collecting, and submitting these taxes themselves.

To remit taxes, hosts must first register with the New York State Department of Taxation and Finance. They will then receive a Certificate of Authority, which allows them to collect and remit sales tax. Occupancy and sales taxes are due quarterly and must be filed online through the state's Online Services system. Late payments are subject to penalties and interest.

It's crucial for STR operators to keep accurate records of all rental revenue and taxes collected, as the city or state may conduct audits to ensure compliance. Failure to properly collect and remit taxes can result in significant fines and legal consequences.

Potential Write-Offs and Deductions

STR hosts may be able to deduct certain expenses related to their rental business on their tax returns. These can include:

1. Mortgage interest and property taxes (if the STR is not the primary residence)
2. Utilities, such as electricity, water, and internet
3. Cleaning and maintenance costs
4. Supplies and amenities provided to guests
5. Advertising and platform fees (e.g., Airbnb or Vrbo commissions)
6. Depreciation of furniture and equipment used in the rental

Hosts should consult with a tax professional to determine which deductions apply to their specific situation and to ensure proper documentation of expenses. By carefully tracking income and expenses, STR operators can minimize their tax liability while staying compliant with local and state regulations.

New York State-Wide Short-Term Rental Rules

In addition to Erie County's local regulations, short-term rental hosts must also comply with state-wide laws in New York. These state requirements apply to all STR operators, including those in Erie County.

The most notable state law is the New York State Multiple Dwelling Law (MDL), which generally prohibits rentals of less than 30 days in buildings with three or more units, unless the permanent tenant is present during the guest's stay. This effectively bans unhosted short-term rentals in many apartments and multi-family properties across the state.

The MDL makes an exception for hosted stays, allowing permanent occupants to rent out part of their unit for less than 30 days, as long as all guests have unobstructed access to every room and exit. No more than two paying guests are permitted in these hosted stays.

Additionally, the New York State Building Code prohibits short-term rentals of less than 30 days in one- and two-family homes, with some exceptions for hosted stays similar to the MDL.

Advertising unregistered or illegal STRs is also prohibited under state law. Fines for advertising non-compliant listings range from $1,000 to $7,500 and are issued to the person responsible for the advertisement.

All STR operators state-wide, including those in Erie County, must also:

1. Register with the New York State Department of Taxation and Finance
2. Obtain a Certificate of Authority to collect state sales and lodging taxes
3. Collect the combined state sales tax (4%) and Erie County sales tax (4.75%) on all STR revenue
4. File quarterly online sales tax returns with the state

So in summary, while Erie County has its own 3% occupancy tax and permit requirements, STR hosts must also ensure their rentals comply with state building codes, dwelling laws, tax obligations, and other regulations. The state rules significantly restrict short-term rentals in multi-family buildings and impose tax and registration requirements on hosts across New York.

Does Erie County Strictly Enforce STR Rules?

Based on discussions among Airbnb hosts on forums like BiggerPockets and Reddit, Erie County does appear to strictly enforce its short-term rental regulations, especially compared to some other markets. The City of Buffalo in particular has a detailed ordinance requiring all STRs to register with the Department of Permits and Inspections Services, with fees ranging from $150-250 for the initial registration.

While some hosts on these forums expressed interest in investing in Erie County STRs, others cautioned about the compliance challenges. One host on BiggerPockets noted that "Last I heard, renting an entire place for less than 30 days is illegal in NY. Your market is very regulated and many hosts have received fines."

Another Reddit thread highlighted how Erie County's strict enforcement has impacted the local market: "Western NY area for us has been busy, people still looking to get away and enjoy a break from their normal lives. I'm sure it could be busier but it's been pretty steady for us so far." This suggests that while demand exists, the regulations have prevented the STR market from reaching its full potential.

Scanning the available STR listings on Airbnb also reveals that the vast majority of Erie County hosts are operating legally by displaying their permit numbers. Very few, if any, appear to be skirting the rules and operating under the radar.

So in summary, Erie County and especially the City of Buffalo are much less Airbnb-friendly than other popular STR markets with looser regulations. Between the registration requirements, fees, and active enforcement, most hosts seem to be complying with the law rather than risking fines by operating illegally. Investors eyeing the Erie County market should be prepared to follow the stringent local rules.

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

Starting a short-term rental business in Erie County requires careful planning and attention to local regulations. Follow these steps to launch your STR:

1. Research local zoning laws and regulations:

• Review Erie County's STR ordinance to confirm your property is eligible. Owner-occupied STRs outside of N-4-30 and N-4-50 zones have fewer restrictions than non-owner occupied rentals.
• Check if your property is in a municipality with additional STR rules, like the Town of Clarence or City of Buffalo.
• Consult with local officials or a lawyer specializing in land use to ensure full compliance.

2. Register with tax authorities:

• Register with the New York State Department of Taxation and Finance to obtain a Certificate of Authority to collect sales tax.
• As of January 2024, you must also register with the Erie County Comptroller's Office to collect the 3% county occupancy tax.
• Keep detailed records of all STR revenue and taxes collected, as the city or state may audit for compliance.

3. Obtain required licenses and permits:

• In Erie County, apply for a Certificate of Registration within 3 days of opening your STR. Include a list of all rental locations if you have multiple units.
• Schedule an inspection with the city to verify your rental meets building and safety codes. Remedy any violations.
• Begin the permitting process well in advance, as it can take several weeks to complete.

4. Prepare your property for guests:

• Ensure your rental is furnished, cleaned, and stocked with essential amenities.
• Install required safety features like interconnected smoke/CO alarms and fire extinguishers. Post emergency info and exit diagrams.
• Decorate your space to stand out and appeal to your target demographic. Provide extras like local guidebooks to enhance the guest experience.

5. Create a compelling listing:

• Take high-quality photos that highlight your rental's best features. Write an accurate, enticing description.
• Choose a competitive nightly rate based on your property's size, amenities, and location.
• List your STR on multiple platforms like Airbnb and Vrbo to maximize exposure. Promote any unique selling points.

6. Automate your STR business:

1. Use vacation rental software to manage bookings, guest communication, cleaning, and more.
2. Consider hiring a local property manager, especially if you live outside Erie County.
3. Vet potential managers carefully and establish clear contracts. Stay involved to ensure quality control.

7. Launch and optimize your listing:

1. Once your property is ready and compliant, publish your listing and start accepting bookings.
2. Provide excellent customer service to earn positive reviews and build your reputation.
3. Analyze your booking data and guest feedback regularly. Adjust your pricing, policies, and amenities as needed to optimize occupancy and revenue.

By following these steps and staying informed of evolving regulations, you'll be well-positioned to launch a successful short-term rental business in Erie County. While the process requires effort, a well-run STR can be a lucrative investment in this popular New York destination.

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

For questions about Erie County's short-term rental regulations, taxes, and zoning, contact:

Erie County Comptroller's Office
95 Franklin Street, Room 1100
Buffalo, NY 14202
Phone: (716) 858-8400
Email: ErieCountyBedTax@erie.gov
Website: https://www4.erie.gov/comptroller/

The Comptroller's Office is responsible for registering STRs, collecting the 3% occupancy tax, and ensuring compliance with the county's rental regulations. They can provide guidance on the Certificate of Registration process and quarterly tax filings.

For additional questions about zoning and permitting in specific municipalities, reach out to:

• Town of Clarence Building and Zoning Department
  1 Town Place
  Clarence, NY 14031
  Phone: (716) 741-8952
  Website: https://www.clarence.ny.us/170/Building-Zoning
• City of Buffalo Department of Permit & Inspection Services
  City Hall, Room 301
  65 Niagara Square
  Buffalo, NY 14202
  Phone: (716) 851-6583
  Email: PermitRequests@city-buffalo.com
  Website: https://www.buffalony.gov/339/Permit-Inspection-Services

These local building departments can help with questions about STR zoning restrictions, permits, inspections, and licensing requirements that may apply on top of the county regulations.

Erie County hosts may also find it useful to connect with other local STR operators in online forums and social media groups, such as:

• Bigger Pockets Erie, PA forums: https://www.biggerpockets.com/forums/432/topics/715803-looking-for-a-great-cashflowing-town-try-erie-pa
• Bigger Pockets Buffalo, NY forums: https://www.biggerpockets.com/forums/61/topics/409034-investing-in-erie-pennsylvania
• r/AirBnB subreddit: https://www.reddit.com/r/AirBnB/
• Western New York Short Term Rental Alliance Facebook group: https://www.facebook.com/groups/1032016117169000/

These communities allow hosts to share experiences, ask for advice, and stay up-to-date on evolving regulations impacting STRs in the region. However, always verify information with official county and municipal sources.

By working closely with the Erie County Comptroller and local zoning offices, prospective short-term rental operators can ensure they follow all the necessary steps to register, file taxes, and obtain required permits before launching their business. Connecting with the host community can provide additional support in navigating the regulatory landscape.

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

Based on discussions in local Erie County forums on Reddit and BiggerPockets, short-term rental hosts have mixed feelings about the regulations:

On the Buffalo subreddit, one host shared their experience starting an STR in a house they recently purchased on the West Side. They plan to live in part of the house while renting out the rest. Commenters were generally supportive, noting that owner-occupied rentals are not the main issue driving housing shortages. As one user put it, "If you live there and rent it out, that's typically fine, but Airbnb is certainly part of the housing crisis. In my opinion long term renting is probably better for the community."

Another thread discussed Erie County's crackdown on the Swimply app, which allows people to rent out their private pools. The county argues this is illegal without a permit, but the original poster questioned how it's different from Airbnb rentals that include pool access. Replies noted the strict safety requirements for public pools in New York State and the potential liability issues.

On BiggerPockets, a few investors have posted about opportunities in Erie, PA (not to be confused with Erie County, NY). One host touted the strong cash flow potential, with many of their rentals achieving cap rates over 17%. While Erie, PA may not appreciate as quickly as other markets, they argue it's "an amazing city to purchase for cash flow."

Another BiggerPockets user asked for general advice about investing in Erie, PA as an out-of-state buyer, seeking recommendations on neighborhoods, realtors, and property managers. However, the post did not receive any replies with specific local insights.

Overall, the online discussions suggest Erie County STR hosts are aware of the evolving regulatory landscape and working to stay compliant. Owner-occupants seem to face less backlash than absentee investors. The county appears to be ramping up enforcement on STRs and related services like Swimply. But with limited data points, it's hard to draw broad conclusions about host sentiment. Many seem to be taking a "wait and see" approach as they navigate the new rules.

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.