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

Starting a Short-Term Rental Business in Lower Towamensing Township

To start a short-term rental business in Lower Towamensing Township, Pennsylvania, it is crucial to understand the local regulations. Short-term rentals are defined as transient uses where a dwelling unit is occupied for less than 30 consecutive days for compensation. These rentals are allowed in specific zoning districts, such as the Low-Density Residential District (R-1) and the Village Commercial District (V-C), but not in the Rural Conservation District (R-C) or other areas.

To operate a short-term rental, property owners must obtain a valid Short-Term Rental License from the township. This involves submitting detailed information, including the owner's contact details, property specifics, and a site plan. Additionally, owners must comply with sewage disposal requirements and ensure that occupancy does not exceed the capacity of the sewage system.

An example of compliance with these regulations is the recent approval of a short-term rental on Covered Bridge Road. The property owner had to seek a special exception from the Zoning Hearing Board, ensuring neighbors were notified and allowed to express concerns.

Key Regulations and Requirements

Licensing: A current valid Short-Term Rental License is required, which involves an annual application process and a fee of $1,055 to cover inspections.

Sewage and Occupancy: Properties must have adequate sewage disposal systems, and occupancy is limited by the system's capacity.

Parking and Access: Properties must provide off-street parking, with at least one space per bedroom.

Managerial Requirements: A local contact or managing agency must be available 24/7 to handle renter needs.

Restrictions: No fireworks, firearms, loud music, or illegal substances are allowed on the premises. No parties or outdoor sleeping in vehicles are permitted.

Community and Zoning Considerations

The township's approach to short-term rentals is cautious, with a focus on maintaining residential peace and safety. For instance, in residential areas like Little Gap Estates, while there are no specific HOA rules against short-term rentals, the community is predominantly residential, and zoning regulations apply.

In contrast, areas like the Village Commercial District are more open to short-term rentals due to their mixed-use nature3. However, the township has emphasized that it does not plan to expand the areas where short-term rentals are allowed, citing regulatory challenges.

Short-Term Rental Licensing Requirement in Lower Towamensing Township

To operate a short-term rental in Lower Towamensing Township, property owners must comply with specific licensing requirements. Here is a detailed list of what is needed:

Requirements for Licensing

• Application Information: The application must include the owner's name, street and mailing address, telephone number, and email address. If the owner does not have a managing agency, they must provide a 24-hour telephone number.
• Managing Agency Details: If applicable, provide the name, street and mailing address, and 24-hour telephone number of the managing agency, agent, or local contact person.
• Property Details: Specify the number of bedrooms and the maximum number of overnight occupants. For multi-unit structures, indicate the total number of units and how many are used as short-term rentals.
• Site Plan: Submit a site plan showing property lines, all buildings with outside dimensions, on-site parking spaces, driveways, on-lot sewage disposal systems, wells, fences, swimming pools, and any other structures.
• Sewage System Information: Ensure that the sewage disposal system meets township and PA Department of Environmental Protection (DEP) requirements. Occupancy must be limited by the system's capacity.
• Tax Certificates: Include copies of the current Carbon County Hotel Room Excise Tax Certificate and Pennsylvania Sales Tax License.
• Insurance: Provide evidence of at least $1 million in liability insurance.
• Special Conditions: Meals shall not be provided to overnight guests, and no parking is allowed on public thoroughfares. No fireworks, firearms, loud music, or illegal substances are permitted.

Submission and Fees

1. Submission Location: Applications should be submitted to the Lower Towamensing Township office.
2. Fees: The annual fee for a short-term rental license is $1,055, which covers the cost of inspections.
3. Processing Time: The exact processing time is not specified, but licenses are valid for one year and must be renewed annually.

Fines and Penalties

Operating a short-term rental without a license is considered a violation and may result in fines and penalties. The township may impose fines and seek equitable relief, including injunctions, for non-compliance. Each day a violation continues is considered a separate offense. The township may also revoke or deny renewal of licenses for uncured or repeated violations.

It is crucial for property owners to comply with these regulations to avoid penalties and ensure the legal operation of their short-term rentals in Lower Towamensing Township.

Required Documents for Lower Towamensing Township Short-Term Rentals

To operate a short-term rental in Lower Towamensing Township, several documents are required. Here is a list of these documents along with their purposes and where to obtain them:

1. Application Form: This form is necessary for applying for a Short-Term Rental License. It includes information about the owner, property details, and contact information for a managing agency if applicable. The form is typically available at the Lower Towamensing Township office.
2. Site Plan: A detailed site plan showing property lines, buildings, parking spaces, driveways, sewage disposal systems, wells, fences, swimming pools, and other structures is required. This plan must be drawn to scale and submitted with the application.
3. Carbon County Hotel Room Excise Tax Certificate: This certificate is required to demonstrate compliance with local tax regulations. It can be obtained from Carbon County.
4. Pennsylvania Sales and Use Tax License: This license is necessary for any business operating in Pennsylvania, including short-term rentals. It can be obtained from the Pennsylvania Department of Revenue.
5. Liability Insurance Policy: A policy with at least $1 million in liability insurance is required to protect against potential risks. This can be purchased from an insurance provider.
6. Copy of the Deed: A copy of the property deed is needed to verify ownership. This document can be obtained from the Carbon County Recorder of Deeds.
7. Floor Plan Information about the Sewage System: This document provides details about the sewage disposal system, ensuring it meets township and PA DEP requirements. It can be obtained from a licensed septic inspector or engineer.
8. Managing Agency or Local Contact Information: If applicable, provide the name, address, and 24-hour contact number of the managing agency or local contact person responsible for handling renter needs.

These documents are essential for obtaining a Short-Term Rental License and ensuring compliance with Lower Towamensing Township's regulations.

Lower Towamensing Township Short-Term Rental Taxes

Short-term rental operators in Lower Towamensing Township, Pennsylvania, must comply with various tax obligations. These taxes are essential for maintaining compliance and ensuring the legal operation of rental businesses.

Types of Taxes

1. Pennsylvania Hotel Occupancy Tax: This state-level tax is set at 6% of the total rental fee, including any cleaning fees. It applies to all short-term rentals lasting less than 30 days.
2. Carbon County Hotel Room Excise Tax: While specific rates for Carbon County are not detailed in the search results, typically, counties in Pennsylvania may impose additional local taxes. However, the primary focus is on the state hotel occupancy tax.
3. Pennsylvania Sales Tax: Short-term rentals are subject to the state sales tax of 6% on the total rental fee, including any cleaning fees charged.
4. Local Sales Tax: Lower Towamensing Township does not have a specific local sales tax mentioned, but it's worth noting that some Pennsylvania counties impose an additional 1% local sales tax.
5. Income Tax: Rental income is subject to state income tax in Pennsylvania. Landlords must report all earnings from rental properties on their tax returns.

Total Tax Burden

In total, short-term rental operators in Lower Towamensing Township can expect to collect and remit approximately 12% in taxes (6% state hotel occupancy tax and 6% state sales tax), plus any applicable income tax on their rental earnings.

Possible Write-offs or Deductions

Short-term rental operators may be eligible for several deductions to reduce their tax liability:

1. Utilities: Expenses for electricity, water, gas, and internet are deductible, but only for the portion used by guests.
2. Cleaning and Maintenance: Costs for cleaning between guest stays, laundry services, and cleaning supplies are fully deductible.
3. Insurance: Both homeowner's and rental insurance policies covering the rental property are deductible.
4. Advertising and Listing Fees: Any fees paid to platforms like Airbnb or other marketing channels are deductible.
5. Supplies and Amenities: Items provided to guests such as toiletries, linens, and kitchenware are deductible.
6. Repairs and Maintenance: Costs for fixing leaks, replacing doors, or other necessary property upkeep are deductible.
7. Mortgage Interest: A portion of the mortgage interest can be deducted based on rental usage.
8. Property Taxes: These can be partially deducted based on the percentage of the property used for rentals.
9. Depreciation: You may be able to deduct for the wear and tear of your property over time.

Keeping detailed records of these expenses is crucial for verifying deductions during tax filings.

Pennsylvania Wide Short-Term Rental Rules

While Pennsylvania does not have comprehensive state-wide laws specifically targeting short-term rentals, there are several state-wide regulations and considerations that affect hosts across the state, including those in Lower Towamensing Township.

State-Wide Tax Requirements

• Pennsylvania Hotel Occupancy Tax: This tax is set at 6% and applies to all short-term rentals lasting less than 30 days. It is collected by third-party booking agents like Airbnb if they manage the booking, or it must be collected by the host if bookings are made directly.
• Pennsylvania Sales Tax: Also at 6%, this tax applies to short-term rentals and is typically collected by booking platforms if they handle the booking.

Licensing and Registration

Local Licenses: While there is no state-wide licensing requirement, many municipalities in Pennsylvania require short-term rental operators to obtain local licenses or permits. These requirements vary significantly by location.

Insurance and Liability

Liability Insurance: While not mandated state-wide, many local ordinances require hosts to carry liability insurance to cover potential risks associated with short-term rentals.

Zoning and Land Use

Local Zoning Restrictions: Zoning laws are primarily governed at the local level, meaning that the permissibility of short-term rentals varies widely across different municipalities and townships.

Enforcement and Compliance

Enforcement Variability: The enforcement of short-term rental regulations varies significantly across Pennsylvania. Some areas are more stringent in enforcing local ordinances, while others may be more lenient.

Future Developments

Proposed Legislation: There are ongoing discussions and proposals for state-wide legislation that could impact short-term rentals. However, as of now, most regulations are determined at the local level.

In summary, while Pennsylvania does not have a uniform state-wide regulatory framework for short-term rentals, hosts must comply with local regulations and state tax laws to operate legally.

Does Lower Towamensing Township Strictly Enforce STR Rules?

Lower Towamensing Township has a mixed approach to enforcing short-term rental (STR) rules. While there is an ongoing effort to refine and enforce regulations, the township's enforcement is not as strict as some other areas like Chestnuthill Township, which is known for its rigorous enforcement.

The township is actively working on improving its enforcement mechanisms. For instance, they are developing a checklist to validate short-term rentals before issuing any notices of violation. This indicates a commitment to ensuring compliance, but it also suggests that the process is still evolving and not yet fully robust.

Resident Steve Meining regularly checks on the status of enforcement, emphasizing the importance of holding property owners accountable. However, the challenge of enforcing regulations against non-local property owners poses difficulties for the township.

Lower Towamensing Township is not particularly Airbnb-friendly compared to other cities. The need for special exceptions and zoning approvals for short-term rentals in certain areas, like the recent approval on Covered Bridge Road, indicates a cautious approach. This suggests that while short-term rentals are allowed, they are subject to specific conditions and community input.

Despite the regulations, some hosts do operate in Lower Towamensing Township. However, they must navigate the township's ordinances and zoning restrictions. The approval process for short-term rentals, such as the one on Covered Bridge Road, shows that hosts are willing to comply with local rules to operate legally.

On platforms like BiggerPockets and Reddit, discussions about operating short-term rentals in the Poconos region highlight the importance of understanding local regulations. While some hosts might attempt to operate without full compliance, the general consensus is that it's crucial to follow local rules to avoid penalties.

In summary, Lower Towamensing Township is not as Airbnb-friendly as some other areas, and while enforcement is improving, it is not overly strict. Hosts can operate successfully by complying with local regulations, but the township's cautious approach means that short-term rentals are not as freely permitted as in more lenient municipalities.

How to Start a Short-Term Rental Business in Lower Towamensing Township

Starting a short-term rental business in Lower Towamensing 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 the zoning laws, licensing requirements, and tax obligations in Lower Towamensing Township. Familiarize yourself with the types of properties allowed for short-term rentals and any specific restrictions in your area. This step is crucial to avoid potential fines or legal issues.
2. Tip: Attend local council meetings or consult with local real estate agents to gain insights into any upcoming changes in regulations.

Choose the Right Property

• Select a property that is zoned for short-term rentals and meets the township's requirements. Consider factors like proximity to attractions, parking availability, and sewage system capacity. Ensure the property is in good condition and can be easily maintained.
• Tip: Consider hiring a local real estate agent who is familiar with the area and can guide you in selecting a suitable property.

Obtain Necessary Licenses and Permits

• Apply for a Short-Term Rental License from the township. This involves submitting detailed information about the property and owner, along with a site plan and proof of liability insurance. Ensure you comply with all requirements to avoid delays in the approval process.
• Tip: Prepare all documents well in advance and ensure they are complete to expedite the licensing process.

Set Up Tax Accounts

• Register for a Pennsylvania Sales Tax License and ensure compliance with the state's hotel occupancy tax. Understand how to collect and remit these taxes, especially if you manage bookings directly.
• Tip: Consult with a tax professional to ensure you are meeting all state tax obligations and taking advantage of available deductions.

Prepare the Property

• Ensure the property is well-maintained and equipped with necessary amenities for guests. This includes providing linens, toiletries, and kitchen essentials. Consider hiring a professional cleaning service to maintain high standards.
• Tip: Invest in quality furniture and appliances to enhance guest experience and encourage positive reviews.

List Your Property

• Create listings on platforms like Airbnb or VRBO. Use high-quality photos and detailed descriptions to attract potential guests. Set competitive pricing based on local market conditions.
• Tip: Utilize dynamic pricing tools to adjust rates according to demand and seasonal fluctuations.

Develop a Guest Management Plan

• Establish clear house rules and communicate them effectively to guests. Ensure you have a local contact or managing agency available 24/7 to handle guest inquiries and emergencies.
• Tip: Implement a guest screening process to minimize potential issues and ensure a smooth experience for both guests and neighbors.

Monitor and Adjust

• Continuously monitor guest feedback and adjust your strategies accordingly. Stay updated on local regulations and market trends to maintain a competitive edge.
• Tip: Regularly review your pricing strategy and adjust it based on occupancy rates and seasonal demand.

By following these steps and staying informed about local regulations, you can successfully start and manage a short-term rental business in Lower Towamensing Township.

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

For inquiries about short-term rental regulations and zoning in Lower Towamensing Township, the following contacts are available:

Lower Towamensing Township Municipal Building

1. Address: 595 Hahns Dairy Road, Palmerton, PA 18071
2. Phone: (610) 826-2522
3. Fax: (610) 826-2585
4. Email: lowertow@ptd.net
5. Hours: Monday – Friday, 8:00 AM – 4:30 PM

Secretary: Christine Wentz

She can provide general information about township operations and direct you to the appropriate department for zoning inquiries.

Permit Officer/Zoning Officer: Duane Dellecker

Available on Tuesdays from 5:00 PM to 7:00 PM. He is responsible for handling zoning-related matters and can assist with questions about short-term rental permits.

Useful Communities and Groups

1. Pocono Mountains Visitors Bureau: This organization supports the tourism industry in the Poconos and may provide valuable insights for short-term rental hosts.
2. Reddit r/Poconos: This subreddit often discusses short-term rental issues in the Pocono region, including Lower Towamensing Township.
3. BiggerPockets Forums: While not specific to Lower Towamensing Township, these forums often have discussions about short-term rental regulations and strategies in various locations.
4. Pennsylvania Association of Realtors: This organization may provide resources and updates on short-term rental regulations affecting the state.

These resources can help hosts navigate local regulations and connect with other property owners in the area.

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

While specific discussions about Lower Towamensing Township are limited, insights from broader Pocono region forums provide valuable perspectives on local regulations and their impact on short-term rental hosts.

Reddit Discussions on Pocono Region Regulations: On Reddit, discussions about the Pocono region often touch on the challenges of navigating local regulations. For instance, one user noted that some areas in the Poconos have strict HOA rules, which can complicate short-term rentals. Another user suggested trying out different areas by renting through Airbnb to get a feel for local conditions before investing.

BiggerPockets Forum on Pocono HOAs and STRs: BiggerPockets has a detailed discussion on the best HOAs in the Poconos for short-term rentals. The forum highlights that not all HOAs allow short-term rentals, and those that do often have unique fee structures. For example, communities like Pocono Farms East and A Pocono Country Place are mentioned as having varying per-stay fees, which can impact profitability.

General Sentiment on Local Regulations: Generally, hosts in the Pocono region express a mix of frustration and adaptability regarding local regulations. Some view HOAs as overly restrictive, while others see them as necessary for maintaining community standards. The consensus is that understanding local rules is crucial for successful short-term rental operations.

These discussions underscore the importance of researching local regulations thoroughly before investing in a short-term rental property in the Pocono region.