All Forum Posts by: Mark Shay

STR is defined as 28 days or less by the state and in most zoning. One HOA has a quirky 14 day definition. If a township does shift their ordinances, owners still have the options to rent for a "season" which works well for places by ski resorts that sell annual passes or communities with amenities like Lakes and Pools. Blue Mountain has added mountain biking season passes for the warmer months, so season rentals are not just for ski season.

Lake Naomi states that owners that rent are required to use an approved real estate agency. If you look deep into the anxiety that communities have over STR, the issue is the anonymity of the guests. Using a realtor to manage rentals or having guests register with the community management office is one way to alleviate that anxiety and one way a POA/HOA supports its members. HOA's and townships will tighten and loosen their rules and regulations based on the input of their constituents. There is an old saying that people get involved in local elected office (township commissioners or HOA boards) for one of two reasons: revenge or self-interest. If owners work together, they have some clout.

Having a dual purpose (personal use and rental income) will at some point present some friction between owners. In my opinion, the earlier you act to prevent these, the better. Forming a LLC will allow you some possible protection legally, but at the same time it will make it harder for you to get homeowners insurance. You should not only consider the financial governance of the ownership but also who gets to use it and when. Will you assign weeks to each other for personal use and what if personal use turns into an informal rental? What if personal use exceeds the agreed to time? In addition to an LLC for ownership and general governance, you should have operating rules that include a Usage Assignment agreement, and/or a Pay to Use agreement so that any future imbalances have an automatic process for financial adjustment. I suggest you plan it like a business with financial provisions for personal use.

There is an old saying that people get involved in local elected office for one of two reasons: revenge or self-interest. This is particularly true when it comes to township commissioners and HOA board members. Rules and Regulations change over time guided by a community's HOA and their township supervisors. One of the communities that I like for STR has a HOA president who owns 4 STR properties in the community, so it is unlikely that that community will go against STR for a while. If you want to invest in a small town business (like a STR portfolio) it will pay to be connected or part of the bodies that oversee licensing of your business (self-interest). It is a cost of doing business, regulation is an investor risk, but it can be managed.

One thing to consider on rentals close to ski mountains is a seasonal rental option.  We have a place close to Blue Mountain Ski Resort (Southern part of Poconos) and rent it for the season (Jan 1-March 15) for $7,500.  Two families who buy season passes split the home rental.  They have kids on the ski team which has practice every weekend.  For us, the decision to go seasonal eliminates the need for cleaning, so we were willing to take a lower rate.  Prior to listing for the season we charged $1,000/weekend and were booked every weekend.  We rent with a 5-day minimum during the summer season (May-September) with a focus on families.  You can see our property listing here: https://www.vrbo.com/1762782

Planned Communities that have a HOA that supports a rental/management office are a good place to start. Those offices give your rental guests an opportunity to "check-in", get a gate or parking pass, wristbands for the amenities, etc. I like the following STR-Friendly communities:

Towamensing Trails

Bear Creek Lakes

Indian Mountain Lake

Emerald Lakes

Arrowhead Lakes

Lakes, beaches, pools are great amenities that make the marketing of your property easier. I maintain a list of communities and their STR-Friendliness. https://poconovacationhomesale...

Running a short-term rental business in the Poconos is challenging but it can be profitable. As as been mentioned, the townships are still trying to come up with modifications to their zoning and sensible rules and regulations. Add to that the volatility that comes from neighborhood run HOA boards and the market is uncertain. It is hard to oversee such an investment from a distance, but some are finding ways to make it work. I have one investment property near Blue Mountain and I'm also a realtor that helps people find good investment properties. I have a blog that tracks the status of STR in Pocono area townships and vacation home communities in the Poconos. It's a work in progress, but hopefully something that can help - https://movingtocarboncounty.c...

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

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.

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.