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

Starting a Short-Term Rental Business in Coolbaugh Township

Coolbaugh Township, located in Monroe County, Pennsylvania, has established specific regulations for short-term rentals (STRs) such as Airbnb and VRBO. These rules are designed to maintain community standards while allowing property owners to participate in the growing vacation rental market. Here's what you need to know about starting a short-term rental business in Coolbaugh Township:

Licensing Requirements: To operate a short-term rental in Coolbaugh Township, property owners must obtain a Short-Term Rental License. This license must be renewed annually and is non-transferable. The initial application fee is $200, with an annual renewal fee of $150.

Zoning Restrictions: Short-term rentals are only permitted in certain zoning districts within Coolbaugh Township. These include R-1, R-2, R-3, W-C, and C-3 Zoning Districts. It's crucial to verify that your property is in an eligible zone before proceeding with your STR plans.

Occupancy Limits: Coolbaugh Township has specific occupancy rules for short-term rentals. The maximum occupancy is calculated as two guests per bedroom plus an additional four guests. For example, a three-bedroom home could host up to 10 guests (6 based on bedrooms plus 4 extra), while a five-bedroom home could accommodate up to 14 guests.

Safety Requirements: All short-term rentals must pass a township safety inspection before a license is issued. This inspection checks for essential safety features such as smoke alarms, carbon monoxide detectors, fire extinguishers, clearly marked exits, and adequate lighting and railings.

Parking Regulations: Property owners must provide a parking plan showing all available on-site parking spaces. The township requires a minimum of one parking space per bedroom. All guest parking must be on the property, not in public rights-of-way or on streets.

Local Contact Person: STR owners must designate a local contact person who can respond to issues within 30 minutes. This requirement ensures that any problems can be addressed promptly, even if the property owner doesn't live nearby.

Noise and Nuisance Regulations: Coolbaugh Township has strict rules about noise and nuisance. Property owners are responsible for ensuring their guests do not disturb neighbors or violate local ordinances. Repeated violations can result in fines or the revocation of the STR license.

Tax Compliance: Before applying for a Coolbaugh Township STR license, owners must obtain a Pennsylvania Sales and Use Tax License and a Monroe County Hotel Excise Tax Certificate. These ensure proper collection and remittance of all applicable taxes on rental income.

Insurance Requirements: Short-term rental owners in Coolbaugh Township must provide proof of insurance with a minimum of $500,000 in rental liability coverage for the property.

Community and HOA Considerations: Some communities within Coolbaugh Township, such as Arrowhead Lake and Pocono Farms, have their own additional rules for short-term rentals. It's important to check with your HOA or community association for any specific requirements or restrictions.

Enforcement and Penalties: Coolbaugh Township takes STR regulations seriously. Operating without a license or violating the terms of the license can result in fines of up to $1,000 per day of violation. Multiple violations can lead to the revocation of the STR license.

Application Process: To apply for an STR license, property owners must submit a completed application form, along with all required documentation, to the Coolbaugh Township office. The process typically takes up to 30 days for initial applications.

Starting a short-term rental business in Coolbaugh Township requires careful planning and adherence to local regulations. While the rules may seem stringent, they are designed to ensure the safety of guests and maintain the quality of life for full-time residents. Many property owners in the area have successfully navigated these regulations and operate thriving vacation rental businesses.

It's worth noting that the STR landscape in the Poconos, including Coolbaugh Township, is evolving. Some long-time STR operators in the area have reported increasing scrutiny and stricter enforcement of regulations. There's also growing sentiment among some full-time residents against the proliferation of short-term rentals. As such, it's crucial for prospective STR owners to stay informed about any changes to local ordinances and to maintain good relationships with neighbors and the community.

Despite these challenges, Coolbaugh Township remains a popular destination for vacationers, offering opportunities for those willing to comply with local regulations and operate responsibly. By understanding and following the rules, short-term rental owners can contribute positively to the local economy while providing memorable experiences for visitors to the Pocono Mountains.

Short-Term Rental Licensing Requirement in Coolbaugh Township

To operate a short-term rental (STR) in Coolbaugh Township, property owners must obtain a Short-Term Rental License. The licensing process is designed to ensure compliance with local regulations and maintain community standards. Here's a comprehensive list of requirements based on the official township information:

Completed Application Form: Owners must submit a detailed application including:

• Owner's name, address, telephone number, and email
• 24-hour contact information for a local managing agency or agent
• A photograph of the rental property from the access road
• Marketing entity identification number
• Floor plan drawn to scale
• Number of bedrooms and maximum occupancy
• Parking plan showing available on-site spaces

Bedroom Size Compliance: All designated bedrooms must contain a minimum of 70 square feet.

Insurance Proof: A declaration page showing a current liability insurance policy of at least $500,000 covering short-term rentals for the license duration.

Safety Features: The property must have:

1. Functioning smoke detectors
2. Fire extinguishers
3. Carbon monoxide monitors
4. Clearly marked exits and evacuation plans
5. Adequate lighting and railings

Parking Provision: A minimum of one parking space per bedroom, located on the property.

Occupancy Limits: Maximum occupancy is calculated as two guests per bedroom plus an additional four guests.

Local Contact Person: Designation of a local contact who can respond to issues within 30 minutes.

Zoning Compliance: The property must be in an eligible zone (R-1, R-2, R-3, W-C, or C-3 Zoning Districts).

Tax Compliance: Owners must obtain a Pennsylvania Sales and Use Tax License and a Monroe County Hotel Excise Tax Certificate.

Community Association Approval: If applicable, proof of approval from the HOA or community association.

Submission Process:

Applications and fees should be submitted to:

Coolbaugh Township
5550 Memorial Blvd.
Tobyhanna, PA 18466

Fees:

1. Initial License Application Fee: $200
2. Annual Renewal Application Fee: $150
3. Re-Inspection Fee (if needed): $40

Processing Time:

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

Penalties for Non-Compliance:

Operating an STR without a license in Coolbaugh Township can result in severe penalties:

1. Fines of up to $1,000 per day of violation, with each day considered a separate offense
2. Liability for all court costs and reasonable attorney fees if legal action is required
3. License revocation for one year after three violations in a 12-month period
4. Permanent license revocation for four or more violations

The township has recently increased enforcement efforts, hiring a third-party company to identify unregistered STRs and ensure compliance with regulations. This stricter approach underscores the importance of obtaining proper licensing and adhering to all local ordinances when operating a short-term rental in Coolbaugh Township.

Required Documents for Coolbaugh Township Short-Term Rentals

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

Pennsylvania Sales and Use Tax License

1. Purpose: This license is necessary for collecting and remitting sales tax on short-term rental income.
2. Where to obtain: Pennsylvania Department of Revenue website or office

Monroe County Hotel Room Rental Excise Tax Certificate

1. Purpose: Required to collect and remit the 3% county hotel tax on short-term rentals.
2. Where to obtain: Monroe County Treasurer's office

Completed Coolbaugh Township Short-Term Rental License Application

1. Purpose: Provides essential information about the property owner, rental unit details, parking, and occupancy.
2. Where to obtain: Coolbaugh Township website or office

Proof of Insurance

1. Purpose: Demonstrates adequate liability coverage for the rental property.
2. What's required: Certificate of insurance showing a minimum of $500,000 in rental liability coverage
3. Where to obtain: Your insurance provider

Trespass Waiver

1. Purpose: Grants township officials permission to enter the property if issues arise with the short-term rental.
2. Where to obtain: Included in the application package from Coolbaugh Township

Parking Plan

• Purpose: Shows the number and location of available on-site parking spaces for guests.
• What's required: A diagram or photograph of the property indicating parking areas
• Where to obtain: Create yourself or have a professional create it

Septic System Information (if applicable)

• Purpose: Ensures the septic system is adequate for the proposed occupancy and properly maintained.
• What's required: Documentation of the system's capacity and recent maintenance
• Where to obtain: Your septic service provider or township records

Floor Plan

• Purpose: Illustrates the layout of the rental unit, including bedrooms and emergency exits.
• What's required: A scale drawing of the property's interior
• Where to obtain: Create yourself or hire a professional to draft it

Photograph of the Property

• Purpose: Helps officials identify the rental unit from the street.
• What's required: A clear photo of the property taken from the access road
• Where to obtain: Take the photo yourself

Local Contact Person Information

• Purpose: Provides a 24/7 contact who can respond to issues within 30 minutes.
• What's required: Name, address, and phone number of the local contact
• Where to obtain: Arrange with a local property manager or trusted individual

Marketing Entity Identification Number

• Purpose: Identifies where the property is being advertised for rent.
• What's required: Listing numbers or identifiers from platforms like Airbnb or VRBO
• Where to obtain: Your short-term rental listing accounts

Coolbaugh Township Zoning Permit (if required)

• Purpose: Ensures the property is in a zone that allows short-term rentals.
• Where to obtain: Coolbaugh Township Zoning Office

Homeowners Association (HOA) Approval (if applicable)

• Purpose: Confirms that short-term rentals are allowed by your HOA or community association.
• Where to obtain: Your HOA or community association board

By gathering these documents, short-term rental owners in Coolbaugh Township can demonstrate their commitment to operating legally and responsibly. Remember that all documents must be current and valid at the time of application or renewal. The township may request additional information or clarification during the review process to ensure compliance with local ordinances.

Coolbaugh Township Short-Term Rental Taxes

Short-term rental operators in Coolbaugh Township, Monroe County, Pennsylvania, are subject to several taxes. Understanding these tax obligations is crucial for compliance and proper financial planning. Here's a breakdown of the applicable taxes:

Pennsylvania Hotel Occupancy Tax: The state imposes a 6% hotel occupancy tax on the total listing price, including cleaning fees, for stays less than 30 days. This tax applies uniformly across Pennsylvania, regardless of the property's location.

Monroe County Hotel Excise Tax: Monroe County levies an additional 3% hotel excise tax on all short-term rentals. This tax is specific to Monroe County and is on top of the state occupancy tax.

Pennsylvania Sales Tax: The state also collects a 1% local sales tax on short-term rentals. This is in addition to the hotel occupancy tax, bringing the total state-level tax to 7%.

In total, short-term rental operators in Coolbaugh Township are subject to a 10% tax rate (6% state hotel occupancy tax + 1% state sales tax + 3% Monroe County hotel excise tax).

It's important to note that while platforms like Airbnb often collect and remit these taxes on behalf of hosts, operators are still required to register with the appropriate authorities and may need to file regular tax returns, even if no additional tax is owed.

Possible Write-offs and Deductions

Short-term rental operators in Coolbaugh Township may be eligible for several tax deductions to offset their rental income. Some common deductible expenses include:

• Mortgage interest and property taxes
• Utilities (electricity, water, gas, internet)
• Cleaning and maintenance fees
• Insurance (both homeowner's and rental insurance)
• Advertising and listing fees
• Supplies and amenities for guests
• Repairs and maintenance of the rental property
• Depreciation of the property and furnishings
• Professional services (accounting, legal fees)
• Vehicle expenses related to the rental business

It's crucial to keep detailed records of all expenses related to your short-term rental business. Remember that if you use the property personally, you may need to pro-rate some expenses based on the percentage of time the property is used for rental purposes.

For those who rent their property for 14 days or less per year, they may qualify for the "14-day rule," which allows them to exclude the rental income from their tax return. However, in this case, they cannot claim any of the associated expenses as deductions.

Always consult with a tax professional familiar with short-term rental regulations to ensure you're maximizing your deductions while remaining compliant with tax laws.

Pennsylvania Wide Short-Term Rental Rules

While Pennsylvania does not have comprehensive state-wide laws specifically regulating short-term rentals like Airbnb, there are some state-level requirements that affect hosts across the Commonwealth, including those in Coolbaugh Township:

• Hotel Occupancy Tax: Pennsylvania imposes a 6% hotel occupancy tax on the total listing price, including cleaning fees, for stays less than 30 days. This tax applies uniformly across the state, regardless of the property's location.
• Sales Tax: In addition to the hotel occupancy tax, the state collects a 1% local sales tax on short-term rentals, bringing the total state-level tax to 7%.
• Tax Registration: While many third-party booking platforms collect and remit taxes on behalf of hosts, operators may still need to register with the Pennsylvania Department of Revenue. However, hosts who exclusively use third-party booking agents for all their rentals are not required to obtain a separate Sales, Use, and Hotel Occupancy Tax license.
• Insurance Requirements: While not a state law, it's strongly recommended that short-term rental operators maintain adequate liability insurance. Many local jurisdictions, including Coolbaugh Township, require proof of insurance as part of their licensing process.
• Building and Safety Codes: Short-term rentals must comply with state-wide building and safety codes, including requirements for smoke detectors, carbon monoxide alarms, and fire extinguishers.
• Anti-Discrimination Laws: Pennsylvania's Human Relations Act prohibits discrimination in housing accommodations, which extends to short-term rentals. Hosts must comply with these anti-discrimination laws when accepting guests.
• Landlord-Tenant Law: While short-term rentals typically fall outside traditional landlord-tenant relationships, hosts should be aware of Pennsylvania's landlord-tenant laws, as some provisions may apply in certain situations.

Business Registration: Depending on the scale of operations, hosts may need to register their short-term rental activity as a business with the Pennsylvania Department of State.

It's important to note that while these state-wide rules provide a baseline, local regulations in Coolbaugh Township and Monroe County may be more stringent and take precedence. Hosts should always consult with local authorities and legal professionals to ensure full compliance with all applicable laws and regulations.

Does Coolbaugh Township Strictly Enforce STR Rules?

Coolbaugh Township has become increasingly strict in enforcing short-term rental regulations over the past few years. Compared to other cities, Coolbaugh Township is now considered less Airbnb-friendly due to its rigorous enforcement and comprehensive regulations.

The township has taken a proactive approach to monitoring and regulating short-term rentals. They have hired a third-party company specifically to identify unregistered STRs, ensure compliance with occupancy limits and other rules, and issue fines to non-compliant owners. This increased scrutiny has made it challenging for hosts to operate under the radar.

Many hosts on Reddit and Bigger Pockets forums have reported experiencing stricter enforcement and growing community backlash against short-term rentals in the Pocono Mountains area, including Coolbaugh Township. One Reddit user commented, "Locals are getting more hostile toward short term renters who are only interested in profit or lower mortgage and make the neighborhood deal with the fallout."

The township's regulations are comprehensive and strictly enforced. They require hosts to obtain a short-term rental license, comply with occupancy limits, provide adequate parking, and meet various safety requirements. Violations can result in hefty fines of up to $1,000 per day and potential license revocation.

Despite the strict rules, some hosts do continue to operate in Coolbaugh Township. However, they face significant risks and challenges. Many have reported receiving fines or having difficulties with neighbors and homeowners' associations. The consensus among experienced hosts is that attempting to operate without proper licensing and compliance is extremely risky and not recommended.

The regulatory environment in Coolbaugh Township has become decidedly less favorable for short-term rentals compared to its past. While it was once a popular and relatively unrestricted area for vacation rentals, the current climate is one of increased regulation and enforcement. Hosts who choose to operate in this market must be prepared to fully comply with all licensing, tax, and operational requirements, as the days of flying under the radar are effectively over in Coolbaugh Township.

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

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

Research Zoning Regulations

1. Before purchasing a property or converting an existing one, verify that short-term rentals are allowed in your chosen area. Coolbaugh Township permits STRs in R-1, R-2, R-3, W-C, and C-3 Zoning Districts. Contact the township zoning office to confirm your property's eligibility.
2. Tip: Consider properties in areas with high tourist appeal, such as those near Pocono Mountains attractions or lakefront locations.

Acquire Necessary Licenses and Permits

1. Obtain a Short-Term Rental License from Coolbaugh Township. You'll also need a Pennsylvania Sales and Use Tax License and a Monroe County Hotel Excise Tax Certificate.
2. Tip: Start the application process early, as it can take up to 30 days for approval. Ensure all your documentation is in order to avoid delays.

Prepare Your Property

1. Ensure your property meets all safety requirements, including smoke detectors, carbon monoxide alarms, fire extinguishers, and clearly marked exits. Create a floor plan and parking plan as required by the township.
2. Tip: Consider hiring a professional inspector to identify any potential issues before the official township inspection.

Set Up Your Business Structure

1. Decide on a business structure (LLC, sole proprietorship, etc.) and register your business with the Pennsylvania Department of State if required.
2. Tip: Consult with a local accountant or lawyer to determine the best structure for your specific situation.

Obtain Adequate Insurance

1. Secure a liability insurance policy with a minimum coverage of $500,000 for your short-term rental property.
2. Tip: Shop around for insurance providers experienced in short-term rental coverage to get the best rates and most comprehensive protection.

Designate a Local Contact Person

1. Appoint a responsible individual who can respond to issues within 30 minutes, as required by township regulations.
2. Tip: If you don't live nearby, consider hiring a local property management company to handle this responsibility.

Set Up Tax Collection and Remittance

1. Implement a system to collect and remit the required taxes, including the 6% state hotel occupancy tax, 1% state sales tax, and 3% Monroe County hotel excise tax.
2. Tip: Consider using a property management platform that can automatically calculate and collect these taxes for you.

Create House Rules and Guest Information

1. Develop clear house rules that align with township regulations, including noise restrictions and occupancy limits. Prepare an information packet for guests with emergency contacts and local amenities.
2. Tip: Clearly communicate rules about noise, parking, and trash disposal to prevent issues with neighbors and potential fines.

Market Your Property

1. List your property on popular short-term rental platforms like Airbnb and VRBO. Consider creating a dedicated website for your rental.
2. Tip: Highlight unique features of your property and the surrounding area to attract guests. Professional photography can significantly improve your listing's appeal.

Implement a Cleaning and Maintenance Schedule

1. Establish a thorough cleaning protocol between guests and a regular maintenance schedule to keep your property in top condition.
2. Tip: Build relationships with reliable local cleaning services and handymen to ensure quick responses to maintenance issues.

Monitor and Adjust Your Business

1. Regularly review your pricing strategy, guest feedback, and financial performance. Stay informed about any changes to local regulations.
2. Tip: Join local short-term rental owner groups or associations to stay updated on industry trends and regulatory changes in Coolbaugh Township.

Engage with the Community

1. Build positive relationships with neighbors and participate in community events to foster goodwill towards your short-term rental business.
2. Tip: Consider offering discounted stays to locals for their out-of-town guests to build community support.

By following these steps and staying compliant with local regulations, you can establish a successful short-term rental business in Coolbaugh Township. Remember that the key to long-term success is not just meeting the minimum requirements, but exceeding them to provide exceptional experiences for your guests while being a responsible member of the community.

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

For questions about short-term rental regulations, licensing, and zoning in Coolbaugh Township, the following contacts and resources are available:

Coolbaugh Township Office

1. 5520 Municipal Drive
2. Tobyhanna, PA 18466
3. Phone: (570) 894-8490

Short-Term Rental Questions:

Email: str@coolbaughtwp.org

Zoning and Code Enforcement:

1. Tomas Keane
2. Director of Zoning & Code Enforcement
3. Phone: (570) 894-8490 ext. 1
4. Email: tkeane@coolbaughtwp.org

Clinton Oddy

Code Enforcement Officer

For general inquiries about short-term rental regulations, zoning, or to submit applications, you can visit the Coolbaugh Township office during business hours.

Community Resources for Short-Term Rental Hosts:

1. Coolbaugh Township Board of Supervisors Meetings: Attend public meetings to stay informed about local regulations and proposed changes. Special meetings related to short-term rentals are occasionally held, such as the one on April 29, 2023, which discussed potential changes to the Short-Term Rental Ordinance.
2. Local Airbnb Host Groups: Search Facebook for "Pocono Airbnb Hosts" or similar groups to connect with other local hosts. These groups can provide valuable insights into local regulations and best practices.
3. Pocono Mountains Visitors Bureau: While not specifically for short-term rental regulations, this organization can provide useful information about tourism in the area, which may be relevant for hosts. You can reach them at (570) 421-5791.
4. BiggerPockets Forums: The BiggerPockets website has forums where real estate investors, including short-term rental operators, discuss various topics. Look for threads specific to Pennsylvania or the Pocono Mountains area.
5. Airbnb Community Center: This official Airbnb forum allows hosts to discuss various topics, including local regulations. You can find threads specific to Pennsylvania or create your own to connect with other hosts in the area.

By utilizing these resources and maintaining open communication with township officials, short-term rental operators in Coolbaugh Township can stay informed about regulations and connect with other local hosts for support and advice.

What Do Airbnb Hosts in Coolbaugh Township on Reddit and Bigger Pockets Think about Local Regulations?

Airbnb hosts in Coolbaugh Township have shared various experiences and opinions about local short-term rental regulations on online forums. Here are some insights from verified threads and discussions:

Occupancy Limits Viewed Favorably: On BiggerPockets, a user named Mike Eichler, who identifies as a realtor and STR property manager, noted that Coolbaugh Township's occupancy rules are more favorable compared to neighboring areas. He stated, "Coolbaugh's occupancy rules state that they allow 2 guests per bedroom with an additional 4 allowed for the home (no max). Example here being a 3 bedroom home is allowed 10 guests and a 5-bedroom home is allowed 14 guests."

Inspection Requirements: The same BiggerPockets user mentioned that Coolbaugh Township requires an inspection before granting an STR permit. He advised, "Just ensure to have all your ducks in a row and follow the rules and you'll be fine. (Sometimes they can be picky when making sure you have enough smoke detectors, fire extinguishers hand rails etc.)"

Community Concerns: On Reddit, a user in the r/Poconos subreddit expressed concerns about the proliferation of short-term rentals in the area. They commented, "Truthfully, my only gripe is that many of the homes here are being converted to short-term rentals and I'm not really keen on being surrounded by people who seem to think that I'm the concierge/travel guide for their vacation."

These experiences and opinions from hosts in Coolbaugh Township reveal a mixed sentiment towards local STR regulations. While some appreciate the more lenient occupancy limits compared to neighboring areas, others find the overall regulatory environment challenging. The economic benefits of STRs are recognized, but concerns about community impact persist. As with many areas experiencing growth in the short-term rental market, Coolbaugh Township hosts are navigating a complex landscape of regulations, community relations, and business opportunities.