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

Starting a Short-Term Rental Business in Berks County

If you're considering starting a short-term rental business in Berks County, Pennsylvania, it's important to familiarize yourself with the local regulations. Short-term rental rules are often found in zoning codes, planning codes, and county ordinances.

In the Borough of West Reading, for example, owners must obtain a permit from the Code Enforcement Officer before renting out any residential unit. Failure to comply can result in the suspension or revocation of the permit.

Similarly, Exeter Township has established specific zoning districts where short-term lodging is permitted. Owners must obtain a Short Term Lodging License, which requires submitting a detailed floor plan, proof of compliance with performance standards, and passing an annual inspection.

The Township of Bern also requires owners to obtain a short-term rental permit before operating an Airbnb or similar rental. Licenses must be renewed annually and properties are subject to inspection by the Zoning Officer.

While there are no statewide laws governing short-term rentals in Pennsylvania, it's crucial to check the specific regulations of your municipality. Some cities like Philadelphia have their own permitting and zoning requirements for Airbnbs.

In addition to local ordinances, make sure to review any contracts, leases, HOA rules or tenant organization rules that may restrict short-term rentals on your property. Violating these agreements could result in penalties even if you are in compliance with county regulations.

As a short-term rental operator in Pennsylvania, you will also be responsible for collecting and remitting the 6% Hotel Occupancy Tax and 1% Local Sales Tax on your bookings. Airbnb collects and pays these taxes on behalf of hosts in many Pennsylvania locations.

By thoroughly researching the applicable short-term rental regulations and obtaining the necessary permits, you can launch your Airbnb business in Berks County with confidence. The Berks County Housing Authority provides helpful resources for landlords looking to participate in their Housing Choice Voucher Program as well.

Short-Term Rental Licensing Requirement in Berks County

To legally operate a short-term rental in Berks County, Pennsylvania, owners must obtain the necessary permits and licenses from their local municipality. The specific requirements vary depending on the city, borough, or township where the property is located.

In the Borough of West Reading, for example, all STR owners must obtain a permit from the Code Enforcement Officer for each premises containing a rental unit. The permit is valid from July 1 to June 30 and must be renewed annually. Failure to obtain a permit constitutes a violation of the borough's ordinance and may result in the suspension or revocation of the permit by the Code Enforcement Officer.

Similarly, Exeter Township requires STR owners to obtain a Short Term Lodging License before providing any short-term lodging. The licensing procedure involves submitting an application, paying an annual license and inspection fee, and providing documentation such as a detailed floor plan, proof of compliance with performance standards, and satisfaction of the township's requirements. The Zoning Officer conducts an annual inspection to confirm compliance. Failure to schedule the inspection and pay the fee will result in revocation of the license.

In the Township of Bern, owners must obtain a short-term rental permit prior to operating an STR. If the ownership of the property changes, the new owner must apply for a new permit before renting the property as a short-term rental. Operating an STR without a permit is a violation of the township's ordinance.

To apply for a short-term rental permit in Bern Township, owners must submit an application containing information such as:

• Property address
• Owner's name, address, phone number, and email
• 24-hour contact information for the person in charge
• Total number of bedrooms
• Floor plan identifying rooms, bedrooms, and pools
• Parking diagram
• Copies of the Berks County Hotel Room Excise Tax Certificate and Pennsylvania Sales and Use Tax Permit
• Proof of liability insurance coverage of at least $500,000

Passing an inspection by the Zoning Officer verifying safety features like smoke detectors, carbon monoxide detectors, fire extinguishers, and more

Permits in Bern Township are subject to annual renewal and a separate permit is required for each dwelling unit being used as an STR. The township may deny a permit if the owner has any outstanding code violations.

While the exact fees and processing times vary by municipality, it's crucial for STR owners in Berks County to thoroughly research the permitting requirements in their specific location. Failing to obtain and maintain a valid short-term rental license can result in significant fines, penalties, and the forced closure of the rental property. By working closely with local officials and diligently following all regulations, owners can legally operate successful STRs in this growing Pennsylvania market.

Required Documents for Berks County Short-Term Rentals

To legally operate a short-term rental in Berks County, Pennsylvania, owners must submit the following documents when applying for a permit:

1. Completed Application: Fill out the Short-Term Rental Permit Application form in its entirety. The application will ask for basic information about the property, owner, and rental unit.
2. Property Address: Provide the address of the property intended for use as a short-term rental.
3. Owner Information: Include the name, address, telephone number, and email address of the property owner.
4. Person in Charge: Provide the name, address, and 24-hour telephone number of the person(s) in charge of the STR. If the owner resides more than 15 miles from the property, a local contact person must be designated.
5. Bedroom Count: Specify the total number of permitted bedrooms in the rental unit. This determines the maximum occupancy allowed.
6. Floor Plan: Submit a detailed floor plan identifying all rooms, bedrooms, and the location of any pools (labeled as in-ground or above-ground).
7. Multi-Unit Structures: If the STR is located in a multi-unit building, indicate the total number of dwelling units and the number being used as short-term rentals.
8. Parking Diagram: Provide a diagram or aerial photograph showing the location and number of on-site parking spaces.
9. Tax Certificates: Include copies of the current Berks County Hotel Room Excise Tax Certificate and Pennsylvania Sales and Use Tax Permit. Tax ID numbers may be deleted.
10. Liability Insurance: Provide proof of at least $500,000 in general liability insurance coverage for the full duration of the permit term.
11. Deed Copy: Submit a copy of the current recorded deed for the property to establish proof of ownership.
12. HOA Approval: If applicable, provide written notice to the homeowner's association indicating intent to use the property as a short-term rental.

In addition to these documents, the property must pass an inspection by the Zoning Officer to verify safety features like smoke detectors, carbon monoxide detectors, fire extinguishers, and more.

Gathering all required materials before beginning the permit application can help the process go smoothly. The specific township or borough where the STR is located may have additional requirements, so it's important to check with local officials for the most accurate information.

By carefully following the documentation requirements and working closely with the Berks County Planning Commission and local zoning departments, STR owners can ensure they are operating in full compliance with all applicable regulations.

Berks County Short-Term Rental Taxes

When operating a short-term rental in Berks County, Pennsylvania, owners are responsible for collecting and remitting the following taxes:

Pennsylvania Hotel Occupancy Tax (HOT): The state of Pennsylvania imposes a 6% tax on the rental of any room or space offered for lodging to accommodate transients. This tax applies to all STRs in Berks County, regardless of the length of stay. The HOT is collected by the host and remitted to the Pennsylvania Department of Revenue on a monthly basis.

Berks County Hotel Room Rental Tax: In addition to the state HOT, Berks County levies a 5% tax on the consideration received by each operator of a hotel within the county from each transaction of renting a room or rooms to accommodate transients. This tax is also known as the Berks County Hotel Room Excise Tax and must be collected by STR hosts.

Pennsylvania Sales and Use Tax: STR owners in Berks County are required to obtain a Pennsylvania Sales and Use Tax Permit and collect the applicable sales tax on all taxable rentals. The current sales tax rate in Berks County is 6%, which includes the 6% state rate and 0% county rate. A copy of the Sales and Use Tax Permit must be submitted when applying for an STR permit.

It's important to note that STR owners are responsible for collecting these taxes from guests and remitting them to the appropriate authorities. Failure to comply with tax obligations can result in penalties and fines.

Possible Write-Offs or Deductions

STR owners in Berks County may be able to deduct certain expenses related to their rental business on their tax returns. Some common deductions include:

1. Mortgage interest
2. Property taxes
3. Insurance premiums
4. Utilities (electricity, water, gas, internet, etc.)
5. Cleaning and maintenance costs
6. Repairs and replacements
7. Supplies and amenities provided to guests
8. Advertising and marketing expenses
9. Depreciation of furniture and equipment

To claim these deductions, STR owners should keep accurate records of all income and expenses throughout the year. Consulting with a tax professional can help ensure compliance with all applicable tax laws and maximize potential write-offs.

By understanding the tax obligations and potential deductions associated with operating an STR in Berks County, owners can better manage their finances and maintain a profitable rental business.

Pennsylvania Wide Short-Term Rental Rules

While Pennsylvania does not have a comprehensive statewide policy governing short-term rentals, there are a few regulations that apply across the state and affect Berks County hosts:

1. Hotel Occupancy Tax: Pennsylvania imposes a 6% Hotel Occupancy Tax on the rental of any room or space offered for lodging to accommodate transients. This tax applies to all STRs in Berks County, regardless of the length of stay. Hosts are responsible for collecting this tax from guests and remitting it to the Pennsylvania Department of Revenue on a monthly basis.
2. Local Sales Tax: In addition to the Hotel Occupancy Tax, Pennsylvania charges a 1% Local Sales Tax on the total listing price, including cleaning fees. Airbnb collects and remits this tax on behalf of hosts in many Pennsylvania locations.
3. Tax Registration: STR operators in Pennsylvania must register for a tax license at mypath.pa.gov before collecting taxes. Income from short-term rentals should be reported on Tax Schedule C, while income from rentals over 30 days uses Schedules E, R or Royalty Income.
4. Zoning and Permits: While there are no statewide zoning laws specific to STRs, many cities and counties in Pennsylvania have their own zoning requirements and permitting processes. In Berks County, for example, the Township of Bern requires all STR owners to obtain a short-term rental permit before operating. Failure to comply is a violation of the township's ordinance.
5. Safety Requirements: Although not mandated at the state level, many Pennsylvania municipalities require STRs to meet certain safety standards, such as having smoke detectors, carbon monoxide detectors, and fire extinguishers. In Berks County, the Township of Bern requires an inspection by the Zoning Officer to verify these safety features before approving an STR permit.

Beyond these state-level considerations, it's crucial for Berks County STR hosts to thoroughly research and comply with the specific rules and regulations of their local municipality. By understanding both the statewide and local requirements, hosts can operate their rentals legally and avoid potential fines or penalties.

Does Berks County Strictly Enforce STR Rules?

Based on discussions among hosts on forums like BiggerPockets and Reddit, Berks County appears to be relatively strict in enforcing its short-term rental regulations compared to some other areas. Many hosts have reported difficulties operating STRs in Berks County due to the specific permitting requirements and zoning restrictions in various municipalities.

For example, in Exeter Township, short-term lodging is only permitted in certain zoning districts and requires a Short Term Lodging License. The licensing process involves submitting detailed documentation, passing inspections, and paying annual fees. Failure to comply can result in fines and revocation of the license.

Similarly strict rules exist in other Berks County localities like the Borough of West Reading, where operating an STR without a permit from the Code Enforcement Officer is considered a violation subject to penalties. Appeals of any enforcement actions go through the formal court system.

While some hosts on BiggerPockets and Reddit have mentioned "workarounds" like only accepting 30+ day bookings to avoid being classified as a short-term rental, the general consensus is that Berks County is not particularly Airbnb-friendly compared to markets with more relaxed regulations. Attempting to operate an STR without the proper permits is very risky.

The Berks County Housing Authority conducts initial and biennial inspections of units in their Housing Choice Voucher Program, demonstrating the county's proactive approach to code enforcement. Although this program is separate from STR regulations, it shows Berks County and its municipalities tend to strictly monitor and enforce rules on rental properties in general.

In summary, based on the specific zoning restrictions, permitting requirements, and enforcement mechanisms that exist in Berks County's various municipalities, as well as anecdotes from hosts on real estate forums, Berks County appears to be relatively strict in regulating short-term rentals compared to more Airbnb-friendly markets. Hosts should not expect to successfully operate STRs in Berks County without carefully following all local regulations and obtaining the required permits.

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

Starting a short-term rental business in Berks County, Pennsylvania can be a profitable venture if done correctly. Follow these steps to successfully launch your Airbnb or VRBO business:

1. Research local regulations: Before investing in a property, thoroughly research the specific STR regulations in your municipality. Zoning laws, permitting requirements, and occupancy limits vary across Berks County. Contact your local zoning office to confirm your property is eligible for short-term rentals.
2. Choose a suitable property: Consider factors like proximity to your home, tourist attractions, and amenities when selecting a rental property. Analyze the local STR market to ensure there is sufficient demand and set a realistic budget for purchasing or leasing the property.
3. Obtain necessary permits and licenses: Apply for a Short-Term Rental License with your municipality, which typically involves submitting a completed application, proof of ownership, a floor plan, proof of insurance, and paying an annual fee. You may also need a general business license and zoning permit.
4. Prepare the rental space: Ensure your property is safe, clean, and well-maintained. Install required safety features like smoke detectors, carbon monoxide detectors, and fire extinguishers. Furnish and decorate the space to create an inviting atmosphere for guests.
5. Secure appropriate insurance: Protect yourself and your investment by obtaining insurance with a minimum of $500,000 in liability coverage. Work with your insurance agent to find a policy that specifically covers STR operations.
6. Create a detailed listing: Once your property is ready, create a listing on popular STR platforms like Airbnb and VRBO. Include high-quality photos, a compelling description, and competitive pricing. Highlight unique selling points and amenities to attract guests.
7. Develop a guest screening process: Establish clear house rules and communicate expectations upfront to ensure a smooth rental experience. Utilize the booking platform's guest verification and review systems to vet potential renters before accepting reservations.
8. Arrange for cleaning and maintenance: Hire a reliable cleaning service or handle turnover cleaning yourself to ensure the rental is spotless for each new guest. Stay on top of regular maintenance tasks and make repairs promptly to maintain a high-quality rental.
9. Comply with tax obligations: Register with the Berks County Treasurer's office to obtain a Hotel Room Rental Tax License. Collect and remit the 5% Berks County Hotel Room Rental Tax and 6% Pennsylvania Hotel Occupancy Tax on all bookings.
10. Continuously improve and adapt: Monitor guest reviews and feedback to identify areas for improvement. Stay up-to-date on changes in local regulations and market trends to ensure your STR business remains compliant and competitive.

By following these steps and remaining diligent in your management, you can build a successful short-term rental business in Berks County. Remember to prioritize guest satisfaction, maintain open communication with local authorities, and continuously adapt to changes in the market to maximize your profitability.

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

If you have questions about short-term rental regulations and zoning in Berks County, your first point of contact should be your local municipality's zoning office. Each city, borough, and township in Berks County has its own specific rules and permitting processes for short-term rentals.

For example, in Exeter Township, you can contact the Zoning Officer at 610-779-5660 or zoning@exetertownship.com for information on their Short Term Lodging License requirements.

In Perry Township, the zoning office is managed by Kraft Municipal Group, Inc. You can call them at 610-777-1311 to schedule an appointment for permit applications or questions.

For properties located in the City of Reading, contact the Zoning Office at 610-655-6326 or zoning@readingpa.gov. They can provide guidance on the required zoning permits and any other applicable regulations.

If you're unsure which municipality your property falls under, you can look it up using the Berks County Assessment Office's parcel search tool at https://www.countyofberks.com/departments/assessment. For general questions, you can also contact the Assessment Office directly at 610-478-6262 or assessment@berkspa.gov.

Another helpful resource is the Berks County Commissioners Office. While they don't handle zoning directly, they may be able to point you in the right direction. You can reach them at 610-478-6136.

For support from fellow short-term rental hosts, consider joining online communities like the Airbnb Community Center or the BiggerPockets Forums. These platforms allow you to connect with experienced hosts, ask questions, and learn from others navigating the regulatory landscape in Berks County and beyond.

By working closely with your local zoning office and connecting with other hosts, you can ensure you're operating your short-term rental in compliance with all applicable regulations in Berks County.

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

While there are limited discussions specifically about short-term rental regulations in Berks County on Reddit and BiggerPockets, some hosts have shared their experiences navigating local rules in Pennsylvania:

In a Reddit thread titled "Navigating around a city's restrictions", a host mentioned that their city in Pennsylvania recently added restrictions requiring permits for short-term rentals. The host was told they were not zoned for STRs and received a notice after a neighbor complained. To avoid further issues, the host switched to 30-night minimum stays.

On the BiggerPockets forums, a user posted about looking into starting short-term rentals in the Poconos area of Pennsylvania. They noted that most townships do not allow STRs, and even those that do often prohibit them in residential properties. The user was seeking advice on potential workarounds to these restrictions.

In another Reddit discussion, hosts debated the ethics of Airbnb allowing listings that violate local regulations. Some shared anecdotes of illegal STRs operating in places like New York City and Thailand, with hosts instructing guests not to mention Airbnb to anyone in the building. While not specific to Berks County, this highlights the challenges of inconsistent enforcement of STR laws.

A new investor on BiggerPockets introduced herself as a hopeful house flipper and landlord in the Reading, PA area of Berks County. While her post did not directly address STR regulations, it shows an interest in real estate investing in the Berks County market.

Overall, the limited discussions from Berks County hosts suggest that navigating the patchwork of local short-term rental regulations in Pennsylvania can be challenging. Hosts appear to be seeking clarity and sometimes exploring workarounds to rules prohibiting STRs in certain areas. However, more specific feedback from Berks County hosts would be valuable to paint a clearer picture of their experiences with local ordinances.

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.