Summer… nope, not for me. A man of my stature doesn’t bode well in the sweltering hot months of Northeastern Pennsylvania. And before you start comparing our temps to southern states, the old adage is true, it’s not the heat, it’s the humidity. We are surrounded with trees up here, and trees = humidity. (at least in my novice opinion). So how do I beat the heat, remain indoors, find pools and travel to areas with great bodies of water!
But obviously I cannot speak for everyone. Some people like this weather. During the dog days of summer, many Pennsylvanians and visitors alike are turning their attention to the beautiful vacation homes sprinkled across our beautiful state, particularly in Lackawanna County. Whether you are a property owner considering the prospect of short-term rentals or a vacationer searching for the perfect summer hideaway, it's crucial to understand the legal implications involved.
From an owner’s perspective, if you’re thinking of renting out your property, there are some things to consider:
1. Zoning and Local Regulations: Always check with your local government to ensure short-term rentals are permitted in your area. In Lackawanna County, zoning laws vary between different cities and towns. For example, Scranton permits short-term rentals in residential zones, but only if certain conditions are met and appropriate variance(s) are obtained. A local attorney or the city's planning and zoning office can provide relevant information.
2. Rental Agreement: Have a comprehensive rental agreement in place. This should include payment terms, the duration of stay, maximum occupancy, house rules, and policies on cancellations and damages. A well-drafted contract can protect your interests and clarify expectations for your guests.
3. Insurance Coverage: Standard homeowner's insurance may not cover short-term rental activities. Consider acquiring proper insurance coverage that accounts for potential liabilities that could arise from renting your property.
4. Taxes: Pennsylvania state law requires you to collect state sales tax, county hotel tax, and in some areas, local taxes from your guests. Failure to do so may result in fines and penalties.
On the flipside, if you are planning on vacationing in a rental property, you have other things to consider:
1. Read the Rental Agreement Thoroughly: This document dictates your rights and responsibilities during your stay. Look for the terms about payment, cancellations, check-in and check-out times, and procedures for reporting issues or damages.
2. Protect Your Deposits: Some owners may require a damage deposit. To ensure you can recoup this, document the condition of the rental property when you arrive and when you leave. Photos can serve as evidence in case of a dispute.
3. Know Local Regulations: Be aware of the local rules and regulations, including noise ordinances and trash collection policies. Adhering to these rules will make your stay more enjoyable and help avoid potential fines.
4. Liability and Insurance: Check if the rental property insurance covers guest accidents. If not, you might want to consider purchasing traveler's insurance to protect yourself from unforeseen incidents.
Another option is to use apps such as Airbnb, VRBO and the like to either find a place to stay or rent out your place. With these options come additional things to consider. As a host, you have to be aware of the platform’s fee structure, how their insurance and liability coverage protects you and its limits; and set forth clear house rules that contemplate local regulations and respect your surrounding neighbors. Additionally, it’s best to come up with a process to screen guests to prevent potential issues.
As a guest, it’s important to read the listings carefully to ensure you understand what’s included in the rental. Pay close attention to the property description, amenities, house rules, cancellation policy, and check-in and check-out times. Read through reviews and ratings from previous guests including their input on the hosts themselves. Be aware of additional fees which seem to be adding up more and more as these platforms grow. Don’t be shy to communicate with your host. I’ve had great experience talking directly with the host before and during my past stays.
Overall, when you utilize these apps instead of a traditional hotel or motel, I have noticed that your stay requires some additional awareness. You have to be more cognizant of the home you’re staying in, and not take for granted that your privacy is protected. Additionally, as a host, you have to remember that it’s not a traditional place to rent out to tenants and it requires some additional work from you particularly between each rental.
I had clients in the past that rented out their lake house and it turned into a lucrative source of additional income during the months they weren’t using their vacation home. Things were going great until they weren’t. They received notice that past renters were filing a claim against them, alleging that the host had planted cameras throughout the house. This of course was not the case and fortunately they were properly protected with insurance, both through the rental app’s coverage as well as their additional private coverage that I had recommended to them. Through an investigation, it was discovered that previous renter’s had planted the cameras and created a scheme wherein their cohort subsequently rented out the place all to file a claim against the host for this alleged extreme violation.
Navigating the legal waters of vacation rentals doesn’t have to be daunting, but it does require some homework. An experienced attorney can help demystify these issues, helping both owners and renters make informed decisions about their summer plans.
Remember, summer is for making memories. Whether you're a vacationer or a homeowner, understanding the legalities surrounding short-term vacation rentals ensures a smoother and more enjoyable summer season.
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