New Rochelle Short Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term (Airbnb, VRBO) Regulations in New Rochelle, New York?

Short-term rentals like Airbnb and Vrbo are allowed in New Rochelle, but there are some restrictions and rules that hosts need to follow. These regulations are defined in the city's zoning code.

New Rochelle's zoning code states that short-term rentals are only permitted if the owner lives in the house. This means non-owner-occupied short-term rentals are prohibited. The relevant section states: "No short-term rentals shall be permitted in the RA-3, RA-2, RA-1, R-20, R-10, R-7½ or R-6 zoning districts unless the short-term rental operator resides in such short-term rental property at all times when guests occupy such property."

So, in residential zoning districts, the owner must be present during any short-term rental stays. This is a common restriction many cities put in place to prevent residential homes from being converted into full-time, short-term rental businesses.

The city has taken enforcement actions against properties violating this owner-occupancy requirement. In one example, a cease and desist order was issued to a property on Wildwood Road advertising on Airbnb because the owners actually lived in New Rochelle, not at the rental property. However, enforcement has been inconsistent at times.

Starting a Short-Term Rental Business in New Rochelle

If you want to start a short-term rental business in New Rochelle, the first step is making sure you will actually be living in the property and present during guest stays, as required by the zoning code.

There don't appear to be any specific permits or licenses required for short-term rentals in New Rochelle. However, you will likely need to collect and pay applicable state and local sales taxes and occupancy taxes.

It's also important to check if there are any restrictions against short-term rentals in your lease, HOA bylaws, or co-op/condo rules. Many leases and HOAs prohibit subletting units as short-term rentals.

In summary, while short-term rentals are legal in New Rochelle, the city requires the owner to live on-site, which prevents investment properties from being used as full-time Airbnb businesses. Make sure to follow this key rule and pay attention to tax collection requirements if you want to be a host in New Rochelle.

Short-Term Rental Licensing Requirement in New Rochelle

Based on the New Rochelle zoning code, short-term rentals like Airbnb and Vrbo are only permitted if the owner lives on the property. Non-owner-occupied short-term rentals are prohibited in residential zoning districts. The relevant section states:

"No short-term rentals shall be permitted in the RA-3, RA-2, RA-1, R-20, R-10, R-7½ or R-6 zoning districts unless the short-term rental operator resides in such short-term rental property at all times when guests occupy such property."

So, the owner must be present in residential areas during any short-term rental stays. This is a common restriction many cities put in place to prevent homes from being converted into full-time, short-term rental businesses.

There don't appear to be any specific permits or licenses required for owner-occupied short-term rentals in New Rochelle. However, hosts will likely need to collect and pay applicable state and local sales taxes and occupancy taxes.

Required Documents for New Rochelle Short-Term Rentals

While New Rochelle allows owner-occupied short-term rentals in residential zones, hosts need to ensure they have the required documents. According to the city's zoning code, short-term rentals are only permitted if the owner lives in the property. To prove owner occupancy, hosts will likely need to provide documents such as:

• A copy of their driver's license or state ID showing the rental property address
• A copy of a utility bill in their name at the rental property address
• A copy of their property tax bill showing they own the rental property

In addition, short-term rental hosts in New Rochelle must collect and pay applicable state and local sales and occupancy taxes. This means having a proper tax registration and filing regular tax returns.

While no specific short-term rental permits are required in New Rochelle, hosts still need a standard rental permit from the Building Department, just like any other rental property. This involves an inspection to confirm the property meets all building and fire safety codes.

Hosts should also have sufficient liability insurance coverage for their short-term rental. While platforms like Airbnb provide some host protection insurance, speaking with an insurance agent about the best coverage for a short-term rental business is still good.

Finally, hosts need to make sure short-term rentals are allowed by their mortgage lender, landlord, or condo/HOA rules. Many leases and HOA bylaws prohibit subletting a property as a short-term rental.

New Rochelle Short-Term Rental Taxes

Short-term rental hosts in New Rochelle need to collect and pay several different taxes:

1. New York State sales tax at a rate of 4%
2. Westchester County sales tax of 4%
3. New Rochelle city sales tax of 4.5%
4. Westchester County hotel occupancy tax of 3%

This means the total combined sales and occupancy tax rate for short-term rentals in New Rochelle is 15.5%.

In addition to these taxes, New Rochelle imposes a 3% room occupancy tax on "every occupancy of a room or rooms in the City." The guest pays this tax, but the host is responsible for collecting it and remitting it to the city.

So, in total, short-term rental guests in New Rochelle pay 18.5% in taxes - a 15.5% combined sales and county occupancy tax plus a 3% city room occupancy tax. Hosts need to make sure they are registered to collect these taxes.

While no specific short-term rental permits are required in New Rochelle, hosts still need a standard rental permit from the Building Department, just like any other rental property. This involves a home inspection to confirm the property meets all building and fire safety codes.

It's important for hosts to stay on top of their tax obligations. The Westchester County Room Occupancy Tax law requires hosts to register with the county within 3 days of starting to rent their property. Quarterly tax returns must then be filed within 20 days of the end of each quarter.

Failure to comply with tax collection and remittance requirements can result in fines and penalties. So, any New Rochelle residents considering listing their home as a short-term rental on Airbnb or VRBO should make sure they understand the tax implications. Consult with a tax professional to ensure you are registered, collecting the proper taxes, and filing all required returns.

New Rochelle Wide Short-Term Rental Rules

New Rochelle's zoning code places some restrictions on short-term rentals. The key rule is that short-term rentals are only permitted if the owner lives in the property.

Specifically, the zoning code states: "No short-term rentals shall be permitted in the RA-3, RA-2, RA-1, R-20, R-10, R-7½ or R-6 zoning districts unless the short-term rental operator resides in such short-term rental property at all times when guests occupy such property."

This means non-owner-occupied short-term rentals are prohibited in residential zoning districts. The owner must be present during any short-term rental stays. This is a common restriction many cities put in place to prevent residential homes from being converted into full-time, short-term rental businesses.

There don't appear to be any specific permits or licenses required for owner-occupied short-term rentals in New Rochelle. However, hosts will likely need to collect and pay applicable state and local sales taxes and occupancy taxes. This includes:

1. New York State sales tax of 4%
2. Westchester County sales tax of 4%
3. New Rochelle city sales tax of 4.5%
4. Westchester County hotel occupancy tax of 3%

So, the total tax rate on short-term rentals in New Rochelle is 15.5%. Hosts need to make sure they are registered to collect and remit these taxes to the proper authorities.

Does New Rochelle Strictly Enforce STR Rules?

Based on discussions in online forums, it appears that New Rochelle does not consistently enforce its short-term rental regulations. The city prohibits non-owner-occupied short-term rentals in residential zones, requiring the owner to live on-site. However, there are reports of properties violating this rule without facing consequences.

In one example from the Connecticut Examiner, a cease and desist order was issued to a property on Wildwood Road advertising on Airbnb because the owners actually lived in New Rochelle, not at the rental property. But enforcement stopped there after the owners claimed they lived in the house.

A Reddit user also described their experience living in a new apartment building in downtown New Rochelle. They mentioned having "so many small issues" with the building and area that prompted them to break their lease after one month. This suggests a lack of oversight on the many new developments being used as short-term rentals.

While New Rochelle has rules on the books restricting short-term rentals, like many cities, enforcement is inconsistent. The city relies on complaints from neighbors to identify illegal rentals but does not proactively monitor compliance or have a strict permitting system. This allows many hosts to operate under the radar.

New Rochelle is relatively hands-off compared to major cities like New York City, which have aggressively cracked down on Airbnb with steep fines and mandatory registrations. Hosts are more likely to get away with occasional short-term rentals as long as neighbors don't complain. However, the city seems to be taking steps to increase enforcement, so the landscape may change as short-term rentals proliferate.

How to Start a Short-Term Rental Business in New Rochelle

If you want to legally launch a short-term rental business in New Rochelle, here are the key steps:

1. Ensure you will actually be living in the property you want to rent out, as the owner must be present per zoning rules.
2. Check that short-term rentals are allowed by your mortgage lender, lease agreement, HOA rules, etc.
3. Obtain a standard rental permit from the New Rochelle Bureau of Buildings by having the property inspected to meet safety codes.
4. Register with New York State and Westchester County to collect the following taxes from guests:
   - 4% NYS sales tax
   - 4% Westchester County sales tax
   - 3% Westchester County hotel occupancy tax
5. Register with the City of New Rochelle to collect the 3% city room occupancy tax and 4.5% city sales tax.
6. Ensure you have proper liability insurance coverage for operating a short-term rental business.
7. Market your rental on platforms like Airbnb and Vrbo, making it clear that you, as the owner, will be present during guest stays.

While New Rochelle allows some short-term rentals, hosts must follow the owner-occupancy rule, obtain permits, register for taxes, and comply with any other applicable regulations. Make sure you understand all the requirements before listing your property.

Who Should Contact in New Rochelle About Short-Term Rental Regulations and Zoning?

If you have any questions about short-term rental regulations, zoning requirements, or need to report a violation in New Rochelle, you can contact:

New Rochelle Bureau of Buildings
Phone: (914) 654-2035

The Bureau of Buildings oversees enforcement of the city's zoning code, including the restrictions on short-term rentals. You can call them to inquire about regulations, permit requirements, or file a complaint about an illegal rental.

For any housing code violations or issues like overcrowding, lack of heat, etc., you can contact the Housing Enforcement division:

Housing Enforcement Hotline
Phone: (914) 654-4809

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

On forums like Reddit and Bigger Pockets, there is a mix of opinions from New Rochelle Airbnb hosts about the city's regulations:

Some hosts feel the owner-occupancy requirement is fair and maintains the residential character of neighborhoods. One Redditor said, "The city won't be checking if the host is in the apartment, lol. So guests would still have a private space."

However, others view it as too restrictive, limiting their ability to operate short-term rentals as an investment property business. A host on Bigger Pockets complained, "The new rule will fine you 1-5k if you are not registered with the OSE, and it finally forces you to host only the rooms in the unit where you reside."

There is frustration about the tax obligations, with one host asking, "Does anybody have a way around this?" in reference to collecting occupancy taxes.

So, while some hosts begrudgingly accept New Rochelle's rules as better than an outright ban, others are actively looking for ways to circumvent the owner-occupancy requirements and tax collection responsibilities. The regulations remain a point of debate in local host communities.

The Housing Enforcement staff responds to complaints about substandard living conditions and can inspect properties for potential violations of housing and property maintenance codes.

So, for any zoning, permitting, or enforcement questions related to operating a short-term rental in New Rochelle, the Bureau of Buildings at (914) 654-2035 is the primary point of contact. And the Housing Enforcement Hotline at (914) 654-4809 can address any tenant/landlord issues or housing code complaints.