All Forum Posts by: Mark Shay

Zip Codes and Mailing Addresses don't match Township names in the Poconos.  Regulations come from municipalities and we do have one called Tobyhanna Township, we also have a zip code for Tobyhanna, PA  and they are not the same.  Most of Tobyhanna Township has zip codes of Pocono Lake and Pocono Pines.  Most of Tobyhanna zip code is in Coolbaugh Township.  

Penn Estates seems to be a good place to operate. The number of STRs in that community have doubled in the past 18 months, the HOA reports 160 operating there. A couple of investor groups seem very bullish on this community and that is pushing the quality of operating STRs up which pushes the performance up which pushes AirDNA numbers up, etc.

I modified my Top 10 due to the looming cap on licenses being issued by Tobyhanna Township. Penn Estates is #7 on my list. New STR applications for places like Locust Lake Village, Camelot Forest and Greenwood Acres are now facing the real possibility of having to sit on a waiting list.

Here is my revised Top 10 (Spring 2024):

#10 – Brier Crest Woods
#9 – Indian Mountain Lake
#8 – Split Rock
#7 – Penn Estates
#6 – Emerald Lakes section in Tunkhannock Township
#5 – Towamensing Trails
#4 – Pocono Farms and Country Club
#3 – Arrowhead Lake, Section in Coolbaugh Township
#2 – Big Bass Lake
#1 – Lake Harmony Estates

Search Top 10 STR-Friendly Communities in the Poconos and see links and more comments.

As we closeout 2023, membership in Poconos VRO has reached 94 with 8 corporate sponsors (affiliates). Thanks to all for your support as our organization becomes to voice of the STR industry in the region.

As an update for those interested in STR or Vacation Rentals in the Poconos, our rental alliance in the Poconos has reached a number of early milestones:

PoconosVrO has received support and assistance from the Pocono Mountains Visitors Bureau (PMVB), our last meeting outlined a one day conference in March of 2024, at the end of the ski season.

PoconosVRO has held several educational/professional development sessions and now have two corporate sponsors - thanks NoiseAware and Safeguard Insurance.  

PoconosVRO now has over 60 paid members of our not-for-profit trade association. 

If you currently own a vacation rental or are thinking of investing in the Poconos, please consider supporting the organization:  http://www.PoconosVRO.org

By way of a state Supreme Court decision, STR is defined as a business and operating a business is governed by zoning. In Pennsylvania, zoning is done at the municipal level. If STR is not defined as an acceptable use, you would need to apply for a variance as the lack of regulation now means it is not permitted. The supreme court case also gave the townships the right to regulate STR through local ordinance. There are 84 municipalities in the 4-county Pocono Mountains region each has their own zoning and an increasing number are adopting STR ordinances.

If you are looking for a property to operate as a STR, first check the township zoning to see if STR is an allowed property usage, it may be restricted by zoning district. Then check to see if they have a STR ordinance which would define the rules and regulations of STR and what is needed for a STR license. Then if you are looking for a HOA, they may have their own restrictions and may require that guests be registered and guest fees paid.

Search Google for Pocono STR Scorecards for some added insight.

Congratulations on your start-up.  Consider joining the local rental alliance called Poconos Association of Vacation Rental Owners (PoconosVRO), a trade association designed to help out of the area owners like you not feel like second-class citizens. If you are in a HOA/POA you should keep an eye on your board, perhaps join a private Facebook group for the rental owners.

Saturation is such a squishy word. The supply of available properties is up greater than the visitation growth which has led to a softening of ADR and tightened margins for many. The area does have an abundance of mediocre properties and mediocre operators. Those that seem to be doing best are those that operate exceptional properties and have professional operations. I think we are seeing a general move to quality in STR across the Poconos and headed toward a position where 20% of the properties will generate 80% of the bookings revenue.

The Pocono Mountains Visitors Bureau posts a dashboard of travel statistics that you might find interesting.  https://www.poconomountains.com/about-us/pmvb-marketing/mark...

Proper seems to be widely used, especially if you have commercial insurance requirements with your lender or municipality and their STR ordinance requirements. Sometimes one insurance overlays a second and instead of doubling up, you may just want to buy limited packages. Blayre Scorzetti and the Safeguard Insurance team are big in the Poconos. https://safeguardha.com/

You will find there is a wide variety of property managers across the Poconos, ranging from generations old, real estate agency based "legends" all the way to upstart co-hosts who might own a property or two and are growing their enterprise by managing a few extra properties.  Ideally you want to find one with a few properties in your community because the Poconos is a sprawling 4 county region and it takes 90 minutes to drive from one end (Milford) to the other (Jim Thorpe).  If you are interested in networking with other owners and property managers, I suggest you consider following the local rental alliance called Poconos Association of Vacation Rental Owners

I had a client buy a legal 3 BR in STR-friendly Emerald Lakes with the intention of rehabbing. He called several septic companies for quotes. One gave him a $30K proposal to replace the sand mound (drain field) and increase the size of the holding tank. The second company worked with Tunkhannock Township who was very helpful and said the existing sand mound was OK and they only needed to replace the holding tank, less than $12K. The good guys were Allstate Septic

He now has 6 legal bedrooms in a community that has a 2 per bedroom + 4 occupancy limit.  Someone two blocks away is in Tobyhanna Township where the current regulation is 2 per bedroom, max 10.  Details matter, so do your homework.  Legal bedroom count is best found in the tax records.