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

Starting a Short-Term Rental Business in Lehigh Township

Starting a short-term rental business in Lehigh Township, Pennsylvania, involves navigating specific regulations that vary significantly from other areas in Lehigh County. Unlike some municipalities, Lehigh Township has more restrictive zoning for short-term rentals. These rentals are only allowed in properties located in general commercial areas, such as the Neighborhood Commercial (NC) and Resort Commercial (RC) zoning districts, and require special exceptions from the Zoning Hearing Board.

To operate a short-term rental in Lehigh Township, property owners must obtain the necessary permits and licenses. This typically involves submitting detailed documents, including:

• Owner Information: Providing the owner's name and contact details.
• Floor Plans: Including detailed floor plans that show habitable space and the total number of bedrooms to determine maximum occupancy limits.
• Site Plan: A site plan showing parking spaces and sewage disposal system details if not connected to a public sewer.
• Tax Documents: Proof of hotel tax and sales tax registration to ensure compliance with tax laws.
• Proof of Ownership: A deed demonstrating ownership of the property.

Licenses are issued annually and require renewal. By accepting a license, owners grant permission for township inspections to ensure compliance with safety and zoning regulations.

While Lehigh Township has strict regulations, other areas in Lehigh County, such as Lehighton Borough, have no specific zoning or licensing restrictions on short-term rentals, making them more Airbnb-friendly. In contrast, Allentown, the largest city in Lehigh County, requires hosts to obtain a residential rental license and pay a yearly fee, with strict enforcement of regulations.

For instance, a property owner in Lehigh Township might face challenges if they attempt to operate a short-term rental in a residential zone without proper zoning variances. However, in commercial zones, they can successfully operate with the right permits and compliance with local ordinances.

Operating a short-term rental in Lehigh Township requires careful adherence to local zoning and licensing regulations. Potential hosts should consult local ordinances and seek legal advice to ensure compliance and avoid penalties. Despite the challenges, with proper planning and compliance, short-term rentals can be a viable business option in Lehigh Township's commercial areas.

Short-Term Rental Licensing Requirement in Lehigh Township

To operate a short-term rental in Lehigh Township, property owners must comply with specific licensing requirements. These regulations are designed to ensure safety, compliance with zoning laws, and proper tax remittance. Here is a detailed list of the requirements:

1. Owner Information: Provide the owner's name and contact details.
2. Floor Plans: Include detailed floor plans showing habitable space and the total number of bedrooms to determine maximum occupancy limits.
3. Site Plan: Submit a site plan with parking spaces and sewage disposal system details if not connected to a public sewer.
4. Tax Documents: Offer proof of hotel tax and sales tax registration to ensure compliance with tax laws.
5. Proof of Ownership: A deed demonstrating ownership of the property.
6. Trespass Waiver: Some areas may require a trespass waiver signed by the property owner.

Submission Process: These documents are typically submitted in-person or by mail to the township zoning department or code enforcement office. The application process may involve working with third-party management associates for registration and licensing.

Fees: Application fees can vary but are often around $200-300 for an annual license. Renewal is required annually or whenever rental conditions change.

Timeline: The processing time for the license application can take several weeks, depending on the completeness of the application and any special approvals needed.

Fines and Penalties: Operating a short-term rental without a required license can incur fines of around $500 per day, depending on the local ordinance. Compliance with all regulations is crucial to avoid these penalties and ensure a smooth operation of the rental business.

Required Documents for Lehigh Township Short-Term Rentals

To operate a short-term rental in Lehigh Township, property owners must submit several documents as part of the licensing process. These documents are crucial for ensuring compliance with local regulations and zoning laws. Here is a list of the required documents along with their purposes:

1. Completed Application Form: This form is provided by the township and includes basic information about the owner, property, and rental unit. It serves as the foundation for the licensing process.
2. Proof of Ownership: A copy of the current deed is required to establish proof of ownership. The license can only be issued to the property owner.
3. Floor Plans: Detailed floor plans showing habitable space and the total number of bedrooms are necessary to determine maximum occupancy limits. This helps ensure that the rental does not exceed safety standards.
4. Site Plan: A site plan is needed to show the location and number of on-site parking spaces for guests. If the property is not connected to a public sewer, details about the sewage disposal system, including its location, age, and capacity, must also be provided.
5. Tax Documents: Copies of the Northampton County Hotel Room Excise Tax Certificate and Pennsylvania Sales Tax license are required. These documents ensure that the property is properly registered for tax collection and remittance.
6. Sewage Disposal System Details: If the property uses a private septic system, a professional evaluation detailing the system's location, age, capacity, and ability to serve as a short-term rental must be submitted.
7. Trespass Waiver: Some areas may require a trespass waiver signed by the property owner, although this is not universally required in Lehigh Township.

These documents are typically obtained from the property owner's records or through professional services such as surveyors for site plans and engineers for septic system evaluations. The application and required documents are submitted to the township zoning department or code enforcement office. It is essential to consult with local officials to confirm the exact documents needed, as requirements may vary slightly based on specific township ordinances.

Lehigh Township Short-Term Rental Taxes

Operating a short-term rental in Lehigh Township involves several tax obligations. These taxes are crucial for compliance with state and local regulations. Here is a breakdown of the taxes applicable to short-term rentals in Lehigh Township:

Tax Types and Rates

1. Pennsylvania Hotel Occupancy Tax: This state tax is 6% of the rental income. It applies to all short-term rentals with stays under 30 days.
2. Pennsylvania State Sales Tax: An additional 6% sales tax is levied on all rental transactions. This tax is also collected and remitted monthly.
3. Lehigh County Hotel Room Rental Tax: Lehigh County imposes a 4% tax on short-term stays. This tax is collected from guests and remitted to the county treasurer's office monthly.
4. Local Sales Tax: There is a 1% local sales tax administered by the state, which applies to short-term rentals. This tax is collected in addition to the state sales tax.

In total, short-term rental hosts in Lehigh Township must collect and remit 17% in taxes on their rental income.

Possible Write-Offs or Deductions

While taxes are a significant expense for short-term rental owners, there are several deductions available to reduce taxable income. These include:

1. Mortgage Interest: The interest paid on loans for acquiring or improving a rental property can be deducted.
2. Property Taxes: Real estate taxes on the rental property are deductible.
3. Maintenance and Repairs: Expenses for maintaining and repairing the property, such as fixing leaks or replacing broken windows, can be deducted.
4. Depreciation: The gradual wear and tear of the property over time can be deducted as depreciation, typically over 27.5 years for residential properties.
5. Operational Expenses: Costs like cleaning services, utilities, and booking fees can also be deducted.

These deductions help minimize tax liabilities and maximize profits from short-term rental operations. It is advisable to consult with a tax professional to ensure all eligible deductions are claimed accurately.

Pennsylvania-Wide Short-Term Rental Rules

While Pennsylvania does not have state-wide laws specifically targeting short-term rentals, hosts must navigate a complex web of local zoning restrictions, permit requirements, and occupancy regulations. However, there are some state-wide considerations that affect hosts across different cities, including Lehigh Township.

State-Wide Tax Requirements

Hotel Occupancy Tax: Pennsylvania imposes a 6% hotel occupancy tax on all short-term rentals. This tax is collected by the host and remitted to the state.

Sales Tax: An additional 6% sales tax is levied on all rental transactions. This tax is also collected and remitted monthly.

Insurance Requirements: Although not mandated state-wide, many local ordinances require short-term rental operators to carry a minimum of $500,000 in general liability insurance. This requirement is often included in local regulations to ensure that hosts are adequately covered in case of accidents or property damage.

Zoning and Permitting: Zoning laws and permitting requirements vary significantly across different municipalities. For instance, some areas restrict short-term rentals to specific zoning districts, such as commercial zones, while others allow them in residential areas with certain restrictions. Hosts must comply with local zoning ordinances and obtain necessary permits to operate legally.

Enforcement and Compliance: While there are no uniform state-wide enforcement mechanisms, local municipalities are responsible for enforcing their own regulations. This can include inspections to verify compliance with occupancy limits, safety standards, and other local ordinances. Non-compliance can result in fines, penalties, and even license revocation.

In summary, while Pennsylvania does not have comprehensive state-wide regulations for short-term rentals, local municipalities play a crucial role in setting and enforcing rules. Hosts must be aware of these local regulations to ensure compliance and avoid penalties. Additionally, understanding state-wide tax requirements and insurance standards can help hosts navigate the complex landscape of short-term rental operations in Pennsylvania.

Does Lehigh Township Strictly Enforce STR Rules? Is Lehigh Township Airbnb Friendly?

Lehigh Township enforces its short-term rental (STR) rules with a moderate level of strictness. While it allows STRs in specific commercial zoning districts, such as the Neighborhood Commercial (NC) and Resort Commercial (RC) zones, it does not permit them in residential areas without special exceptions. This approach indicates that the township is not entirely Airbnb-friendly compared to other areas like Lehighton Borough, which has no specific restrictions on short-term rentals.

Enforcement in Lehigh Township is consistent with its zoning regulations. The township requires licenses and special exceptions for operating STRs, which suggests a structured approach to compliance. However, the lack of variances granted for single-family homes in residential zones indicates a strict adherence to zoning laws.

Despite the restrictions, some hosts may still operate in Lehigh Township, particularly in areas where STRs are permitted. However, the need for special exceptions and licenses discourages many potential hosts from operating in residential zones. Discussions on platforms like Bigger Pockets and Reddit suggest that hosts are generally cautious about operating outside the designated commercial zones due to the risk of fines and penalties.

Compared to other cities in Lehigh County, such as Allentown, which is known for strict enforcement, Lehigh Township's approach is more restrictive in terms of zoning but less aggressive in enforcement. Allentown has stiff penalties for violations and actively monitors compliance, making it less Airbnb-friendly than Lehigh Township in terms of regulatory hurdles. On the other hand, Lehighton Borough offers a more relaxed environment for STR hosts, making it a preferred location for those seeking fewer regulatory challenges.

In summary, while Lehigh Township is not as Airbnb-friendly as some other areas due to its restrictive zoning, it does provide a structured framework for operating short-term rentals in designated commercial zones. Hosts must carefully comply with local regulations to avoid penalties, but the township's enforcement is not as aggressive as in some other municipalities.

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

Starting a short-term rental business in Lehigh Township requires careful planning and compliance with local regulations. Here is a step-by-step guide to help you get started:

Research Local Regulations

1. Begin by thoroughly understanding Lehigh Township's zoning laws and short-term rental regulations. Ensure that your property is located in a zone where STRs are permitted, typically commercial areas like Neighborhood Commercial (NC) or Resort Commercial (RC) zones. Familiarize yourself with the licensing requirements and any necessary permits.
2. Tip: Consult with local officials or a real estate attorney to clarify any ambiguities in the regulations.

Obtain Necessary Licenses and Permits

1. Once you've confirmed that your property is eligible, apply for the required licenses and permits. This typically involves submitting detailed documents, including proof of ownership, floor plans, and tax registration documents.
2. Tip: Ensure all documents are complete and accurate to avoid delays in the application process.

Prepare Your Property

1. Ensure your property meets safety and health standards. This includes installing smoke detectors, ensuring proper sewage disposal, and providing adequate parking. Consider hiring a professional to inspect and prepare your property for rental.
2. Tip: Invest in quality furnishings and amenities to attract higher-paying guests and improve reviews.

Set Up Tax Accounts

1. Register for the necessary tax accounts, including the Pennsylvania Hotel Occupancy Tax and Sales Tax. This will ensure you can collect and remit taxes correctly.
2. Tip: Consult with a tax professional to understand all applicable taxes and deductions.

Choose a Booking Platform

• Decide which platforms you will use to list your property, such as Airbnb or VRBO. Each platform has its own fees and requirements, so choose the ones that best fit your business model.
• Tip: Consider using a property management system to streamline bookings and guest communication across multiple platforms.

Develop a Pricing Strategy

• Research local market rates to set competitive pricing for your rental. Consider factors like seasonality, property amenities, and local events that may impact demand.
• Tip: Use dynamic pricing tools to adjust rates based on demand fluctuations.

Create a Guest Management Plan

• Develop a plan for managing guest inquiries, check-ins, and check-outs. This may involve hiring a local property manager or using automated systems for keyless entry and communication.
• Tip: Establish clear house rules and communicate them effectively to guests to minimize issues.

Monitor and Adjust

• Continuously monitor your business's performance, guest feedback, and local regulations. Be prepared to adjust your strategies as needed to maintain compliance and improve profitability.
• Tip: Regularly review local forums and real estate groups to stay updated on any changes in regulations or market trends.

By following these steps and staying informed about local regulations, you can successfully establish and operate a short-term rental business in Lehigh Township.

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

For accurate and up-to-date information about short-term rental regulations and zoning in Lehigh Township, it is essential to contact local township officials directly. Here are the key contacts:

Lehigh Township Office

• Address: 1069 Municipal Road, Walnutport, PA 18088
• Phone: 610-767-6771
• Fax: 610-767-1452

Zoning Officer

• Elizabeth Amato
• Phone: 610-767-6771, Ext. 113
• Email: egehman@lehightownship.com

Manager/Secretary/Treasurer

• Alice Rehrig
• Phone: 610-767-6771, Ext. 111
• Email: arehrig@lehightownship.com

Useful Communities and Resources

Hosts in Lehigh Township may find it beneficial to join local real estate forums or online communities to stay informed about regulatory changes and best practices. Some platforms include:

• Bigger Pockets: A real estate investment forum where hosts can discuss local regulations and strategies.
• Reddit: Subreddits like r/AirbnbHosts or r/Poconos can provide insights into local experiences and regulatory challenges.

These resources can help hosts navigate the complex landscape of short-term rental regulations in Lehigh Township and connect with other local property owners facing similar challenges.

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

While there are limited specific discussions about Lehigh Township on platforms like Reddit and Bigger Pockets, nearby areas in the Poconos and Lehigh Valley provide insights into the broader sentiment regarding local regulations. Here are a few relevant perspectives:

Poconos Short-Term Rental Regulations: On Reddit, hosts in the Poconos area express frustration with local ordinances, describing them as "onerous and overbearing." They mention high permit fees and strict requirements, such as mandatory insurance despite Airbnb's coverage. These regulations are seen as a significant burden, with some hosts feeling they are close to a de facto ban on short-term rentals.

Monroe County Ordinances: Discussions on Reddit highlight concerns about noise, trash, and property damage associated with short-term rentals in Monroe County. Residents often advocate for stricter regulations to address these issues, while hosts see these measures as overly restrictive and costly.

Lehigh Valley Real Estate Strategies: On Bigger Pockets, investors in the Lehigh Valley discuss strategies for managing rental properties, including short-term rentals. While specific discussions about Lehigh Township are scarce, the broader Lehigh Valley context suggests that investors are cautious about local regulations and seek advice on compliance and profitability.

General Sentiment: Across these platforms, there is a general sentiment that local regulations can be challenging for short-term rental hosts. Many hosts seek advice on navigating these regulations while maintaining profitability. The lack of specific discussions about Lehigh Township suggests that hosts may be less active in online forums or that the regulations are not as contentious as in other nearby areas.