Alternative permit options for STRs in upstate NY

[John D.]

Hi all!

I am researching the viability of STRs in upstate NY and there is a lot of chatter at the moment about pending or upcoming changes to regulations within specific towns, counties, etc. 

However, I am curious if anyone has any experience of applying for an alternate type of permit that would essentially allow a STR in the area. For example, a permit to run a "Bed & Breakfast" (in the traditional sense). Or, for example, if someone wanted to run a tiny house village of say 5 tiny houses on a few acres. Is there a special permit for say, a campground which could be applied for? This is especially interesting as a lot of the STR regulation I am seeing is either putting a limit on the number of nights that the property can be rented out for, or requiring that the property be the primary residence for the owner. Presumably an alternate permit type such as a campground permit or more traditional "bed and breakfast" permit would not have such limitations.

[Sean Bramble]

I'm by no means an expert, but looked into upstate earlier this year for investment - Catskills area. I know from an agent in the Windham area that people have tried to get permits for tiny homes and have been denied. The way the state is structured into "towns" which have authority over much larger areas than what you or I would consider an actual town makes it complicated. Seems like the areas which haven't crafted legislation yet will eventually do so, so investors are looking at an eventual "getting grandfathered in" reality. This can be problematic if STR permits are linked to people - not properties - and may not be able to be transferred to new owners. Really limits exit options and the premium established STRs can sell for in more pro-biz markets. This + very high property taxes is why I started looking elsewhere out-of-state to invest in residentially zoned STRs. That said - take this all with a grain of salt, there could be pockets of safe areas with great potential. I looked primarily and Hunter/ Windham, Shandaken area, and don't have the best grasp of the western Catskills region (or the rest of the state for that matter). Definitely do your own research. If I were still looking in the Catskills I would focus more on old motel/ hotel conversions with commercial zoning .. potentially with creative/ seller finance possibilities. Once regulations are codified STR supply is essentially capped, and there could be a lot of upside for folks who have bought properties with the right zoning. Best of luck, and I would be super interested if you learn anything that contradicts anything I've said here! I live in Brooklyn, and would in theory love to invest closeby

PS- call the towns directly to ask your questions. They’ll have the most up to date info. Really try to feel them out as to how easy or not what you’d like to do will be. Theyll often describe a process, but you should pry as much as possible to see how feasible your idea actually is vs what they’ve seen in the past 

also- unless anything has changed Hunter and Windham will likely remain STR friendly. Problem is property values are so high it's hard to find anything that will cashflow like you would want it to