Which towns in the Poconos, PA allow short term rentals?

[Jimmy Gonzalez]

I’m looking to buy a rental property in the Poconos area. I am researching the areas but I can’t find any information on which towns allow short term rentals. Does anybody have a list or know of a website? Thanks.

[John Geldert]

@Jimmy Gonzalez the Pocono’s is massive, it varies from township to township. What part are you interested in?

[Jimmy Gonzalez]

@John Geldert Poconos pine, swiftwater, paradise valley, Henryville, tannersville, Bartonsville, analomink, east stroudsburg, reeders, lake harmony, cresco. Just to name a few.

[Mike S.]

@Jimmy Gonzalez

Not so affordable anymore ☹️ prices have sky rocket. A house that was maybe 180k is now 230-250k... It's crazy up there. And you have to be careful where you buy bc certain towns don't give STR permits to houses in residential zones. Some HOAs don't allow it either. I have one house there and always looking for more but it's been difficult due to bidding wars. The good ones are under contract in less than 24 hours. But if you can get one, it's a great market

[Xander Weidenbaum]

So yes, it varies by township and also HOA. The following townships, to my knowledge, currently have short-term rental ordinances in place that allow for short term rentals w permits (from east to west): Middle Smithfield, Jackson, Paradise, Barrett, Coolbaugh, Tunkhannock. Tobyhanna township is expected to pass one that will be 'rental friendly,' but to my knowledge has not been passed yet. Stroud township allows STR in two communities - Penn Estates and Blue Mountain Lake Estates - only. Lehman (Pike County/Bushkill), Smithfield, Eastburg Borough, Stroud Borough, Hamilton, Pocono, Chestnuthill and some others explicitly do not allow STR under 30 days continuous period. Then there are communities within the townships that may disallow - I.e. Country Club of the Poconos in Middle Smithfield and Timber Hill POA in Paradise.

This is my primary market and we've done a TON of short-term rental work particularly over the past 3+ years. Happy to help w more questions. Almost all townships have the short-term rental ordinance, as applicable, available on their website. In general, the areas that were 'traditionally vacation oriented' on top of the Pocono plateau (Coolbaugh, Tunkhannock, Tobyhanna) etc. have experienced the greatest growth in sales volume in 2020 due to a combo of more owners having second/vacation homes there so it's easier for them to bring their property to market, generally friendly STR rules and proximity to Pocono attractions (ski, hiking etc.). 

Also some spots that have commercial or special 'recreation' zoning (like the townhomes at Camelback) allow short term rental despite being in a township (Pocono) that doesn't allow it in their residential only zones. Folks that have STR's in the area are doing great with them... # of bedrooms and specialty features really help drive it. Good luck and happy house hunting!

[Scott Rankin]

Thanks for this great info Xander!  

I can confirm that Tobyhanna Township has not passed a STR ordnance yet, but the draft they've circulated is based on Coolbaugh's. Based on the last town hall I attended (virtually), they're having problems sorting out how to handle enforcement, which is a common problem for these municipalities.

@Jimmy Gonzalez My best advice is to call the HOA and township directly if you're interested in a house/region. They don't update their websites regularly and realtors often don't have the most current/correct info about the regulations. I promise you'll learn more from a 5 minute phone call than a week of scrolling around online looking for info. Keep in mind that PA has a ton of overlapping jurisdictions, so be sure to contact the HOA (if any), the township and the county to make sure you'll be in compliance with your business plan. The counties don't have zoning jurisdiction but you'll want to make sure you're filing quarterly tax reports with them (in Monroe and Carbon, for example), not only for their compliance but your township/HOA may require it as well.

I hope that helps!

Scott

[Rebecca Dailey]

Monroe County has extremely high property and school taxes.   Mjd courts also have become tenants friendly during covid.   There are alot better counties in pa to invest 

[Angel Latimer]

@Rebecca Dailey

Gm Rebecca can you tell me of which, I'm also interested in short term rentals, thanks

[Rebecca Dailey]

I would recommend luzerne or Lackawanna County.  We do month to month lease in both of these counties. Our experience is luzerne county is cheaper on taxes and more landlord friendly. I would recommend  searching for Edwardsville,  Plymouth,  forty fort, avoca,  Kingston,  back mountain,  Exeter, luzerne borough,  swoyersville  etc.   Hazelton and parts of the inner city of wilkes barre the tenant quality isn't so great so do your home work.   I am also a huge fan of Tunkhannock and surrounding area(Wyoming County) and also Bradford county.   

[Xander Weidenbaum]

Rebecca, those areas can definitely work well for long-term rentals. Are there a lot of short-term (nightly, vacation style rentals) they do in those areas? Maybe towards Back Mountain but not so much in Forty Fort, Avoca, Kingston, Hazleton etc. I'd imagine. I'd think it's too densely populated with not enough tourism demand, but maybe your experience there is different? 

Also, Angel, not sure how important tenant laws will be to you with short-term (Airbnb) rentals. Taxes in Monroe are definitely higher than most areas in Luzerne/Lackawanna counties, but the prices, economic drivers and styles of housing are also very different between the two. 

[Rebecca Dailey]

If you're looking for vacation rental Poconos is the spot.  Luzerne and Lackawanna counties are not highly tourism areas.   Some areas such as lake cary or harvey lake yes in those areas do draw tourism.   If your looking for more of a rental luzerne and Lackawanna counties are great.  High demand in rental market

[Aman Bindal]

Great Info @Xander and @Scott. Anyone here has any update on if Tobyhanna Township has passed STR ordinance yet?

[Que Tran]

Hi Jimmy, definitely check out Big Bass Lake in Gouldsboro - I have one there.  And they do allow airbnb.  Prices are still high, but at least do some research now and wait a bit, for inventory to beef up.

[Tom Dunn]

Are there any organized coalitions forming to fight these bans?

The local governments are not handling this properly. Rather than throw their hands in the air and blanket ban str’s thinking the problem will go away, they ought to be figuring out ways to make it work.

Apparently, that’s too much work for them.

Instead, they are permitting grandfathered in properties to remain str’s. Now they’re able to charge more (supply and demand) thereby rewarding those same owners who provided cause to institute the ban in the first place!

These small time crony governments need to be confronted on these bans until they’re overturned.

[Mark Shay]

It is a moving target with zoning changes and local ordinances being added and updated regularly.  This all spurs from a 2019 PA Supreme Court ruling that essentially states that a homeowner has no natural right to run a rental business from their home, they need permission.  Permission comes in the form of zoning (allowable usage) and short-term rental ordinances.  Some communities (through their HOAs) are defining themselves as for permanent residents, others for vacation homes and in doing so add another layer of regulation.  As a Realtor who specializes in this, I am keeping a tally of Pocono Area Short-Term Rental Ordinances and Short-term Rental Friendly Pocono Communities. This is an estimate, so before you make any final decisions, contact both the municipality and the HOA for verification.

[Mark Shay]

It is a moving target with zoning changes and local ordinances being added and updated regularly.  This all spurs from a 2019 PA Supreme Court ruling that essentially states that a homeowner has no natural right to run a rental business from their home, they need permission.  Permission comes in the form of zoning (allowable usage) and short-term rental ordinances.  Some communities (through their HOAs) are defining themselves as for permanent residents, others for vacation homes and in doing so add another layer of regulation.  As a Realtor who specializes in this, I am keeping a tally of Pocono Area Short-Term Rental Ordinances and Short-term Rental Friendly Pocono Communities. This is an estimate, so before you make any final decisions, contact both the municipality and the HOA for verification.

[Bryan Lauth]

I recently started a Facebook page where I plan to document my journey of building a new house as a STR in the Pocono area. I plan on posting a lot of content on the local ordinances as more and more townships are putting a line in the sand. Look it up and give it a like: Hosts of Airbnb: Poconos.

[Mark Shay]

As a Realtor who specializes in Vacation Homes as STR investments, I often get asked my favorite communities in which to operate a rental business. Mine are:

1) Arrowhead Lake - https://arrowheadlakepa.net/ With multiple lakes, beaches and pools, you feel like you are on vacation as soon as you pass through the gate.  The registration process for guests is reliable and the community has a good support system.

2) Towamensing Trails - https://www.towamensing.com/ Golf cart friendly this large community is a mix of full time residents who mostly like away from the amenities and some very nice lake houses. Low HOA fee, nice location, not gated.

3) Indian Mountain Lake - https://imlca.nabrnetwork.com/ Several lakes, beaches and pools highlight this gated community that spans three townships. One township does not allow STR, so do your homework

[Tech Cheng]

Originally posted by @Rebecca Dailey:

I would recommend luzerne or Lackawanna County.  We do month to month lease in both of these counties. Our experience is luzerne county is cheaper on taxes and more landlord friendly. I would recommend  searching for Edwardsville,  Plymouth,  forty fort, avoca,  Kingston,  back mountain,  Exeter, luzerne borough,  swoyersville  etc.   Hazelton and parts of the inner city of wilkes barre the tenant quality isn't so great so do your home work.   I am also a huge fan of Tunkhannock and surrounding area(Wyoming County) and also Bradford county.   

Hi Rebecca,

Do you know anything about the STR regulations for long pond, tannersville and henryville? Thoughts on these areas. I'm looking to purchase my first up there.

thx,

Tech

[Xander Weidenbaum]

Hey Tech,

Yes, so regulations will run by township and then by HOA (as applicable).

Henryville is a beautiful and convenient area but not STR friendly. It's partly located in Pocono Township and partly in Paradise Township. Pocono Twp does not allow STR's except in their residential zoning districts and Paradise is expected to pass, as of next meeting, a regulation also disallowing STR's in their residential zoning districts. Both of these townships, to my knowledge, do allow them in their commercial zoning districts and their ‘special recreation' type district(s). These districts make up a small portion of total zoning areas/properties tho.

Tannersville is primarily Pocono Twp so it's a no. That said, along Camelback Mountain Resort a lot of properties are in their recreation district and therefore allow STR's. Note, just south of Tannersville is Jackson Township, which does allow short term rentals w a permitting process throughout their township.

Long Pond is one of the ‘hottest' areas for STR's from an occupancy/return perspective along with Penn Estates in East Stroudsburg and Lake Harmony Estates in Lake Harmony. Long Pond (a lot of which is made up of Emerald Lakes HOA), is super popular for STR due to proximity to ‘Pocono Stuff,' plus easy access to highways and conveniences. Long Pond the town is split between two townships, Tunkhannock Township to the south and Tobyhanna Township to the north. Tunkhannock has a rental ordinance in place, which makes it more secure, in my opinion, though you're limited by the regulation as to advertisement of bedrooms in relation to septic size/septic permit. For example, you're allowed to advertise for 2 persons per legal septic-authorized bedroom plus an addtl 4 person. So a 4 bedroom home can be advertised to sleep 12.

Tobyhanna Township does NOT have an ordinance in place; however, they have multiple drafts of their proposed ordinance (you can find on their website - note: Tobyhanna Township and the town of Tobyhanna are two different places). So, eventually they are expected to pass their ordinance allowing short term rentals, but there is no ordinance on the books as of now. That said, they do not ‘crack down or disallow’ short term rentals, and instead defer to the many homeowners’ associations in the area to regulate as necessary. A bit less secure maybe than Tunkhannock Township, which has an ordinance on the books, but still an extremely popular area for short term rental investment as the housing stock is generally ‘vacation styled,’ many of the communities havd lakes amd/or other amenities and returns can be excellent in this area. 

Another area nearby to consider would be Coolbaugh Township, which has an ordinance in place allowing STR, and is made up of the towns of Pocono Summit and Tobyhanna.

Wishing you success going forward with your investment purchase - hope this served as a helpful jumping-off point. 

[Anthony Engel]

Thank you for keeping this thread going. The updated info added recently is extremely helpful for navigating the array (read: "spider web") of current and future ordinances across these multiple Pocono area jurisdictions.

[Chris Mooney]

Great thread here! I lived 8 years in the Poconos when I was younger, beautiful area!

But to take the conversation a different direction, what would happen to the values of all these STRs in the Poconos if STRs were banned or became heavily restricted? Is there a thriving LTR market in the area? I'm always thinking about a plan b with STRS, and the Poconos seem so dependant on tourism vs. a larger city like Philadelphia, where you could easily convert your property to a LTR. 

Thoughts?

[Mark Miles]

Originally posted by @Chris Mooney:

Great thread here! I lived 8 years in the Poconos when I was younger, beautiful area!

But to take the conversation a different direction, what would happen to the values of all these STRs in the Poconos if STRs were banned or became heavily restricted? Is there a thriving LTR market in the area? I'm always thinking about a plan b with STRS, and the Poconos seem so dependant on tourism vs. a larger city like Philadelphia, where you could easily convert your property to a LTR. 

Thoughts?

The Poconos cannot handle mass conversion from STR to LTR. The demand for LTR simply isn't there. Very few people want to live there year round, except all those opioid addicted meth heads who were born and raised there and never seem to leave. And that's the Poconos STR labor pool right there.

You can already see in Poconos areas that have banned or restricted STR, the housing prices are significantly lower than in areas that permit STR. Every time a new Poconos area bans or restricts STR, their housing values immediately plummet. There's simply not a good backup plan when a Poconos area bans or restricts STR, except to sell at a steep loss

[Matt M.]

As I’ve said before on Poconos posts-

My wife lived there for about 19 years. We now live about 35 mins away. I never liked the Poconos and she won’t allow us to buy anything there. I’ve seen the market there fluctuate so much, taxes are high in a lot of areas, tons of HOAs, and a massive amount of moss and mold covered T-111 siding haha.

[Bud Gaffney]

Following...Let us know how you make out please!

[Steven Ruff]

I am new here, getting rid of my STR this spring which is 6 houses from lake wallanpaupack. Deeded boat slip (deeded partial ownership of two lake front lots with slips, shared by 16 houses in the area. Guaranteed slip) palmyra township, pike county so STR is legal. My lot is 1.5 acres. No community or HOA. Awesome place wish I could keep it but I'm moving my primary residence (ny) to Florida and will be investing down there instead. If anyone has any questions about wallanpaupack and the real estate there feel free to ask. Palmyra requires a permit which basically just proves that you aren't overloading your septic system. Pike county is the east side of the lake and Wayne county is the west side of the lake. Wayne county doesn't allow STR.