By: John M. Hart III, Esq.
Summer? Nope, not for me. A man of my stature doesn’t fare well in the sweltering hot months of Northeastern Pennsylvania. Before you start comparing our temperatures to southern states, remember the old adage: it’s not the heat, it’s the humidity.
Our abundant trees equate to humidity, at least in my novice opinion. So, how do I beat the heat? I stay indoors, find pools, or travel to areas with substantial bodies of water!
Of course, I cannot speak for everyone. Some people enjoy this weather. During the dog days of summer, many Pennsylvanians and visitors turn their attention to the beautiful vacation homes scattered across our picturesque state, particularly in Lackawanna County. Whether you’re a property owner considering short-term rentals or a vacationer in search of the perfect summer hideaway, understanding the legal implications involved is crucial.
If you’re an owner thinking about renting your property, consider the following:
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 differ among cities and towns. For instance, Scranton permits short-term rentals in residential zones, but only under certain conditions and with appropriate variances. You can obtain relevant information from a local attorney or the city’s planning and zoning office.
2. Rental Agreement: Ensure you have a comprehensive rental agreement in place. This agreement should encompass payment terms, duration of stay, maximum occupancy, house rules, and policies regarding cancellations and damages. A well-drafted contract can safeguard your interests and establish clear expectations for your guests.
3. Insurance Coverage: Standard homeowner’s insurance may not cover short-term rental activities. It’s worth considering proper insurance coverage to account for potential liabilities from renting your property.
4. Taxes: Pennsylvania state law mandates you to collect state sales tax, county hotel tax, and in some areas, local taxes from your guests. Failure to comply can result in fines and penalties.
On the other hand, if you’re planning a vacation in a rental property, you should:
1. Review the Rental Agreement Thoroughly: This agreement governs your rights and responsibilities during your stay. Pay close attention to payment terms, cancellations, check-in and check-out times, and procedures for reporting issues or damages.
2. Protect Your Deposits: Some owners may ask for a damage deposit. To ensure you can reclaim this, document the property’s condition upon your arrival and departure. Photos can help resolve any disputes.
3. Understand Local Regulations: Familiarize yourself with local rules, including noise ordinances and trash collection policies. Compliance with these rules can enhance your stay and help you avoid potential fines.
4. Assess Liability and Insurance: Verify if the rental property insurance covers guest accidents. If not, consider purchasing travel insurance to protect yourself from unforeseen incidents. You might also consider using apps like Airbnb or VRBO to find a place to stay or rent out your property. However, this option presents additional considerations. Hosts need to understand the platform’s fee structure, how its insurance and liability coverage protects them, and its limitations. You also need to set clear house rules that comply with local regulations and respect your neighbors. Additionally, establishing a guest-screening process can prevent potential problems.
As a guest, it’s essential to read listings carefully to understand what’s included in the rental. Pay attention to the property description, amenities, house rules, cancellation policy, and check-in and check-out times. Also, review feedback from previous guests about their experiences and the hosts. Be mindful of additional fees which may pile up as these platforms grow. Don’t hesitate to communicate with your host; I’ve found direct communication before and during my stays to be beneficial.
Bear in mind, using these apps instead of traditional hotels or motels often requires additional vigilance. You must respect the home you’re staying in, understanding that your privacy may not be fully guaranteed. Also, as a host, remember that managing your property involves more work, particularly between rentals.
I once had clients who rented out their lake house, providing a lucrative source of additional income during the months they weren’t using their vacation home. All went well until they received notice that past renters were filing a claim against them, alleging the host had installed cameras throughout the house. This was untrue, and thankfully, they were well-insured, both through the rental app’s coverage and additional private insurance that I had advised. While it was never determined exactly what had happened, we speculated that previous renters had planted the cameras and hatched a scheme to rent the place and file a false claim against the host.
Navigating the legal aspects of vacation rentals may seem daunting, but it doesn’t have to be. An experienced attorney can help clarify these issues, assisting both owners and renters to make informed decisions about their summer plans. Remember, summer is for creating memories. Whether you’re a vacationer or a homeowner, understanding the legalities surrounding short-term vacation rentals can ensure a smoother, more enjoyable summer season.