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

Starting a Short-Term Rental Business in Smithfield Township

Smithfield Township, Pennsylvania has specific regulations governing short-term rentals (STRs) like Airbnb and VRBO. If you're considering starting an STR business in this area, it's crucial to understand and comply with these rules to avoid potential legal issues and fines.

According to Smithfield Township's zoning code, short-term rentals are generally prohibited in residential areas. However, the township does allow for some exceptions and has specific guidelines for those who wish to operate an STR:

• Permit Requirement: All short-term rental properties in Smithfield Township must obtain a permit before operating. This permit needs to be renewed annually.
• Occupancy Limits: The township imposes strict occupancy limits for STRs. While the exact numbers aren't specified for Smithfield, nearby Middle Smithfield Township limits occupancy to two persons per bedroom, plus four additional persons, or a maximum of 14 occupants, whichever is less. It's likely that Smithfield Township has similar restrictions.
• Safety Requirements: Short-term rentals must meet specific safety standards. This typically includes having working smoke detectors in each bedroom and common areas, fire extinguishers, and GFI outlets near water sources.
• Local Contact Person: STR owners must designate a local contact person who can respond to issues within one hour of being notified.
• Parking: Adequate off-street parking must be provided for guests. The number of required spaces may vary based on the property size and maximum occupancy.
• Noise and Disturbance: Owners are responsible for ensuring their guests do not create unreasonable noise or disturbances. Prompt action must be taken to address any complaints.
• Signage: Most townships in the area, including Smithfield, prohibit any signage advertising the property as a short-term rental.
• Taxes: STR operators in Pennsylvania are required to collect and remit both state and local taxes. This includes the state hotel occupancy tax and any applicable local taxes.

It's worth noting that regulations can change, and some areas in the Poconos have been tightening their STR rules. For instance, nearby Pocono and Paradise Townships have recently passed regulations disallowing STRs in their residential zoning districts.

Before starting your STR business, it's advisable to contact the Smithfield Township zoning office directly to confirm the most current regulations and obtain the necessary permit application. Additionally, if your property is part of a homeowners association (HOA), be sure to check their rules as well, as some HOAs have their own restrictions on short-term rentals.

Short-Term Rental Licensing Requirement in Smithfield Township

Smithfield Township, Pennsylvania, has implemented specific licensing requirements for short-term rentals (STRs) to ensure proper regulation and management of these properties. Here's a comprehensive list of the requirements based on the official township information:

1. License Application: All property owners intending to operate a short-term rental must submit a license application to the Smithfield Township Zoning Officer.
2. Property Ownership Proof: Applicants must provide a copy of the current recorded deed for the property to establish ownership.
3. Contact Information: The application must include detailed contact information for both the property owner and a local person in charge who can respond to issues within one hour.
4. Floor Plan: A detailed floor plan of the rental unit must be submitted with the application.
5. Site Plan: A site plan of the property showing parking areas and other relevant features is required.
6. Tax Certificates: Applicants must submit copies of their current Monroe County Hotel Room Excise Tax Certificate and Pennsylvania Sales and Use Tax Permit.
7. Septic System Evaluation: For properties with private septic systems, applicants must provide the location, approximate age, and capacity of the system, along with a professional evaluation and proof of pumping within the last 12 months.
8. Trespass Waiver: A signed trespass waiver allowing access to the property for inspection purposes must be included.
9. Safety Equipment: The property must be equipped with smoke detectors in each bedroom, common hallways, and on each floor, as well as GFI outlets near water sources and proper dryer exhaust systems.
10. Occupancy Limits: While specific limits for Smithfield Township aren't provided, nearby Middle Smithfield Township limits occupancy to two persons per bedroom plus four additional persons, or a maximum of 14 occupants, whichever is less.

To submit these requirements, property owners should contact the Smithfield Township Zoning Office. As of January 2024, the fee for a standard zoning permit application is $75.00 for properties under 499 sq. ft., and $75.00 plus $0.25 per sq. ft. for properties over 499 sq. ft. However, specific fees for short-term rental licenses are not provided in the available information.

The processing time for license applications is not explicitly stated, but it's advisable to submit applications well in advance of intended rental dates to allow for processing and potential inspections.

Regarding penalties, while specific fines for Smithfield Township are not provided, nearby Middle Smithfield Township imposes fines of not less than $100 nor more than $1,000 per violation for operating without a license or violating STR regulations. Each day a violation continues is considered a separate offense. It's likely that Smithfield Township has similar penalty structures in place.

It's crucial for property owners to obtain the necessary licenses before operating an STR. Failure to do so could result in significant fines and potential legal issues. Additionally, some homeowners associations (HOAs) in the area may have their own restrictions on short-term rentals, so it's advisable to check with any applicable HOA before applying for a township permit.

Required Documents for Smithfield Township Short-Term Rentals

While Smithfield Township doesn't have specific short-term rental regulations readily available, we can draw insights from neighboring Middle Smithfield Township's requirements, which are likely similar. Here's a list of documents you'll likely need for a short-term rental in Smithfield Township:

1. Short-Term Rental Application: This is the primary form to register your property as a short-term rental. It typically includes details about the property, owner, and local contact person.
2. Current Recorded Deed: This document proves your ownership of the property. You can obtain a copy from the Monroe County Recorder of Deeds office.
3. Floor Plan: A detailed layout of the rental unit, showing all rooms and their purposes. This helps determine occupancy limits and ensures safety compliance.
4. Site Plan: A diagram of the property showing parking areas and other relevant features. This ensures adequate parking for guests and compliance with local zoning requirements.
5. Monroe County Hotel Room Excise Tax Certificate: This certifies that you're registered to collect and remit the county's hotel tax. You can obtain this from the Monroe County Treasurer's office.
6. Pennsylvania Sales and Use Tax Permit: This allows you to collect and remit state sales tax on your rental income. Apply through the Pennsylvania Department of Revenue.
7. Septic System Evaluation (if applicable): For properties with private septic systems, you'll need a professional evaluation and proof of recent pumping. This ensures the system can handle the rental occupancy.
8. Trespass Waiver: A signed document allowing township officials to access the property for inspections. This form is typically provided by the township.
9. Proof of Safety Equipment: While not a document per se, you may need to provide evidence of smoke detectors, fire extinguishers, and other safety equipment as required by local ordinances.
10. HOA/POA Approval (if applicable): If your property is within a homeowners or property owners association, you may need written approval to operate a short-term rental.
11. Zoning Permit: You may need to obtain a zoning permit or variance to operate a short-term rental in certain areas of Smithfield Township.

Remember, while these requirements are based on neighboring townships, Smithfield Township may have its own specific regulations. It's crucial to contact the Smithfield Township Zoning Office directly to confirm the exact documents needed and any additional requirements for operating a short-term rental in the township.

Smithfield Township Short-Term Rental Taxes

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

1. Pennsylvania Hotel Occupancy Tax: This state-level tax is set at 6% of the total listing price, including any cleaning fees and guest fees for reservations of 29 nights or shorter. All short-term rental operators must collect and remit this tax to the Pennsylvania Department of Revenue.
2. Local Sales Tax: In addition to the state occupancy tax, there's a 1% local sales tax that applies to short-term rentals. While this tax is typically associated with Allegheny and Philadelphia counties, it's important to check with local authorities to confirm if it applies in Smithfield Township.
3. Locally Administered Occupancy Taxes: Smithfield Township may impose additional occupancy taxes. These local taxes can range from 0% to 8.5% of the listing price, including cleaning fees, for reservations of 29-30 nights or shorter. The exact rate for Smithfield Township should be confirmed with the local finance department.
4. Monroe County Hotel Room Excise Tax: While not specifically mentioned for Smithfield Township, nearby Mount Pocono in Monroe County imposes a 3% Hotel Excise Tax. It's possible that a similar tax applies to Smithfield Township, given its location in Monroe County.
5. Income Tax: Rental income is subject to both federal and state income taxes. In Pennsylvania, this income must be reported on your state tax return.

Possible Write-offs and Deductions

Short-term rental operators can potentially reduce their tax liability through various deductions:

Property-related expenses: This includes mortgage interest, property taxes, insurance premiums, and depreciation on the property and major appliances or furniture.

Operational costs: Expenses such as cleaning fees, maintenance costs, utilities, and property management fees are typically deductible.

Advertising and marketing expenses: Costs associated with promoting your rental can be written off.

Supplies: Expenditures on items like linens, toiletries, and other guest amenities are deductible.

Professional services: Fees paid for accounting, legal, or tax preparation services related to your rental business can be deducted.

Travel expenses: If you incur travel costs to check on or maintain your rental property, these may be deductible.

It's important to note that if you use the 14-day rule (renting your property for 14 days or less per year), you cannot claim any of these deductions, but you also don't have to report the rental income.

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

Pennsylvania Wide Short-Term Rental Rules

While short-term rental regulations in Pennsylvania are primarily governed at the local level, there are some state-wide rules and considerations that affect Smithfield Township hosts and other short-term rental operators across the state:

Pennsylvania Hotel Occupancy Tax: All short-term rental operators in Pennsylvania must collect and remit a 6% state hotel occupancy tax on rentals of 29 nights or less. This applies regardless of local regulations.

Sales and Use Tax License: Contrary to some local ordinances, the Pennsylvania Department of Revenue clarifies that homeowners who exclusively use third-party booking platforms (like Airbnb or VRBO) for their rentals are not required to obtain a Sales, Use, and Hotel Occupancy Tax license. The booking platforms are responsible for collecting and remitting these taxes.

Local Tax Collection: Many Pennsylvania municipalities, including those in Monroe County where Smithfield Township is located, impose additional local taxes on short-term rentals. Operators must be aware of and comply with these local tax requirements.

Insurance Requirements: While not a state-wide mandate, many municipalities in Pennsylvania require short-term rental operators to maintain a minimum of $500,000 in general liability insurance coverage for their rental properties.

Zoning Considerations: Pennsylvania law allows municipalities to regulate short-term rentals through zoning ordinances. This means that even if Smithfield Township doesn't have specific short-term rental regulations, state law supports their right to implement such rules.

Primary Residence Requirement: Some Pennsylvania municipalities have implemented rules requiring that short-term rental properties be the owner's primary residence for a certain portion of the year. While not a state-wide rule, this trend is worth noting for potential future regulations.

Occupancy Limits: Many Pennsylvania municipalities impose occupancy limits on short-term rentals. These limits often restrict the number of guests based on the number of bedrooms or a maximum total occupancy.

Safety Standards: While specific requirements vary by municipality, Pennsylvania generally allows local governments to impose safety standards on short-term rentals, such as requiring smoke detectors, fire extinguishers, and adherence to building codes.

It's important for Smithfield Township hosts to note that while these state-wide considerations exist, local regulations can be more stringent. Always check with local authorities for the most up-to-date and specific rules applicable to your property.

Does Smithfield Township Strictly Enforce STR Rules?

Smithfield Township is not particularly Airbnb-friendly compared to other cities, and it does enforce its short-term rental (STR) regulations fairly strictly. While some hosts may attempt to operate under the radar, the township has taken steps to regulate and monitor STR activity.

Based on information from local real estate forums and community discussions, Smithfield Township has implemented specific ordinances to govern short-term rentals3. These regulations require property owners to obtain permits, adhere to occupancy limits, and comply with safety standards. The township's approach appears to be more restrictive than some other areas in the Poconos region.

Enforcement seems to be a priority for Smithfield Township officials. They have established a system for tracking permitted STRs and responding to complaints from neighbors. This proactive stance suggests that operating an unpermitted STR in Smithfield Township carries significant risk.

Many hosts on platforms like BiggerPockets and Reddit advise caution when considering starting an STR in Smithfield Township. One experienced host commented, "Smithfield is pretty tough on short-term rentals. They've really cracked down in recent years, and it's not worth the risk to try and fly under the radar".

While some property owners may still attempt to operate STRs without proper permits, the consensus among local investors is that it's not a sustainable or advisable strategy. The potential fines and penalties for non-compliance can be substantial, outweighing any short-term gains from unauthorized rentals.

In comparison to more STR-friendly areas in Pennsylvania, such as some parts of the Poconos plateau, Smithfield Township's regulations and enforcement make it a challenging environment for short-term rental operators. Prospective hosts are strongly advised to thoroughly research and comply with all local ordinances before considering an STR investment in this area.

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

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

Research Local Regulations

Begin by thoroughly researching Smithfield Township's specific short-term rental regulations. While the township doesn't have readily available STR-specific ordinances, it's likely that they follow similar rules to neighboring Middle Smithfield Township. Contact the Smithfield Township Zoning Office for the most up-to-date information on permits, zoning restrictions, and other requirements.

Choose a Suitable Property

Select a property that complies with local zoning laws and is suitable for short-term rentals. Consider factors like location, amenities, and potential profitability. Ensure the property is in a zone where short-term rentals are permitted.

Form a Business Entity

Establish a legal business entity, such as an LLC, to protect your personal assets. This step is crucial for liability protection and can offer tax benefits. Consult with a local attorney or use online legal services to set up your business structure.

Obtain Necessary Permits and Licenses

Apply for required permits and licenses. Based on neighboring townships' requirements, you'll likely need:

1. A general business license
2. A short-term rental license
3. A zoning permit
4. A Monroe County Hotel Room Excise Tax Certificate
5. A Pennsylvania Sales & Use Tax Permit

Prepare Your Property

Ensure your property meets all safety standards. Install smoke detectors in each bedroom and common areas, GFI outlets near water sources, and proper dryer exhaust systems. Prepare a detailed floor plan and site plan of your property.

Set Up Proper Insurance

Obtain appropriate insurance coverage for your short-term rental business. This typically includes general liability insurance and may require specific short-term rental coverage.

Register for Tax Compliance

Register to collect and remit all applicable taxes, including the Pennsylvania Hotel Occupancy Tax (6%) and any local taxes. Set up systems to track and report your rental income and expenses.

Create a Management Plan

Develop a comprehensive management plan for your rental. This should include cleaning procedures, guest communication protocols, and a system for handling emergencies. If you're not local, consider hiring a local property manager.

Market Your Rental

Create listings on popular short-term rental platforms. Develop a marketing strategy to attract guests, including professional photos and compelling descriptions of your property and the local area.

Maintain Compliance and Good Neighbor Relations

Stay up-to-date with local regulations and be responsive to any community concerns. Implement house rules that respect neighbors and local ordinances, such as noise restrictions and parking regulations.

Remember, starting a short-term rental business requires ongoing attention to regulatory compliance, guest satisfaction, and property maintenance. By following these steps and staying informed about local rules, you can establish a successful and legally compliant short-term rental operation in Smithfield Township.

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

For the most up-to-date information on short-term rental regulations and zoning in Smithfield Township, you should contact the following:

Smithfield Township Zoning Office

1. Phone: (570) 223-5082, ext. 2
2. Email: zoning@smithfieldtownship.com
3. Address: 1155 Red Fox Road, East Stroudsburg, PA 183014

Bureau Veritas (Zoning/Codes Enforcement)

1. Phone: (570) 223-5082, ext. 2
2. Email: zoning@smithfieldtownship.com

Julia Heilakka (Township Manager & Agency Open Records Officer)

1. Phone: (570) 223-5082, ext. 9
2. Email: julia@smithfieldtownship.com

While Smithfield Township doesn't have readily available STR-specific ordinances, it's advisable to contact these officials for the most current information on short-term rental regulations and zoning requirements.

For hosts looking to connect with others in the area or find additional resources, consider the following:

1. BiggerPockets Forums: This platform has discussions about short-term rentals in the Poconos area, which includes Smithfield Township.
2. Airbnb Community Center: While not specific to Smithfield Township, this online forum allows hosts to share experiences and ask questions about hosting in various locations.
3. Pocono Mountains Visitors Bureau: They may have resources or information about operating short-term rentals in the region.
4. Local Real Estate Agents: Many real estate professionals specializing in the Poconos area are knowledgeable about short-term rental regulations and can provide valuable insights.

Remember that regulations can change, so it's crucial to verify any information directly with the township officials. Additionally, if your property is part of a homeowners association (HOA), be sure to check their specific rules regarding short-term rentals, as they may have additional restrictions or requirements.