Executive Summary

Short-term rentals ARE ALLOWED in Chatham, NY, but they are subject to comprehensive regulation through the town's permitting system. The Town of Chatham has adopted Local Law No. 6 of 2023 to regulate short-term rentals, requiring permits, compliance with occupancy limits, and adherence to safety standards. Investors must obtain both local permits and comply with Columbia County occupancy tax requirements.

How to Start a Short-Term Rental Business in Chatham, NY

Step 1: Understand Your Zoning Classification

• Short-term rentals are permitted in all zoning districts within the Town of Chatham
• Hamlet zones (H-1 and H-2) have more restrictive occupancy limits (maximum 6 visitors)
• Outside Hamlet zones have higher occupancy allowances (up to 8 visitors base, with additional allowances for extra bedrooms)

Step 2: Meet the Two-Step Registration Process

1. County Registration (Priority): Register with Columbia County first to obtain your registration number
2. Town Permit: Apply for your Chatham Building Department permit using your county registration number

Step 3: Complete Required Applications

• Submit the Columbia County short-term rental registration form
• Complete the Chatham Town STR Permit Application
• Provide all required documentation (see Required Documents section)

Step 4: Designate a Local Contact Person

• Must live within 20 miles of the rental property
• Must be available to respond to complaints when you cannot be reached
• You may designate this person as your initial point of contact with written notification

Step 5: Prepare for Operations

• Install required safety equipment (smoke/CO detectors, emergency lighting)
• Create an evacuation plan with marked exits
• Prepare your "Good Neighbor Statement" for guests
• Ensure compliant off-street parking arrangements

Required Documents, Permits, Licenses, and Guidelines

Town of Chatham Requirements

STR Permit Application (Required annually)

• Permit Fee: $100.00 annually
• Renewal Deadline: January 31st of each year
• Permit Status: Non-transferable; expires immediately upon property ownership change

Required Documentation for Permit:

• Completed STR Permit Application
• Property owner's contact information
• Local contact person information (name, address, phone, email within 20 miles)
• Plot plan showing parking arrangements and distances from property lines
• Compliance with fire and safety recommendations

Safety and Compliance Requirements:

• Smoke and carbon monoxide detectors installed and operational
• Visible 911 emergency number from street
• Emergency lights and evacuation plan with marked exits
• List of emergency numbers provided to guests
• Copy of permit and owner contact information displayed in STR
• Good Neighbor Statement provided to each visitor

Columbia County Requirements

County Registration (Required every two years)

• Registration Fee: $100 annually
• Occupancy Tax: 4% (effective July 1, 2025)
• Registration Deadline: 30 days from June 1, 2025 for initial registration
• Renewal: Every two years, with notification required for any changes

Additional Tax Obligations:

• NY State Sales Tax: 4% (effective March 1, 2025) - collected separately to NYS
• Platform Collection: VRBO collects and remits occupancy tax automatically (other platforms require individual payment)

Specific Regulations for Short-Term Rentals

Town of Chatham Regulations

Occupancy Limits:

• Hamlet Zones (H-1, H-2): Maximum 6 visitors per STR
• Non-Hamlet Zones:
  • Base occupancy: Up to 8 visitors
  • Additional capacity: 2 additional visitors per bedroom for bedrooms 5-7 (maximum 3 additional bedrooms)

Property Limits:

• Hamlet Zones: Maximum 1 STR per property, 1 STR unit per structure
• Non-Hamlet Zones: Maximum 2 STRs per property, 1 STR unit per structure

Operational Requirements:

• Noise levels must comply with Town Code limits
• Off-street parking must comply with Town Code specifications
• Good Neighbor Statement review required with visitors
• Local contact person availability for complaint response
• Timely response to Code Enforcement Officer contact

Grace Period and Enforcement:

• 120-day grace period from November 2, 2023 deadline for existing operations
• Violations may result in permit forfeiture
• Fines and penalties imposed per Town Code

Columbia County Regulations

Tax Collection Timeline:

• 2025 Schedule:
  • 3rd Quarter (Jun 1 - Aug 31): Payment due October 15th
  • 4th Quarter (Sept 1 - Nov 30): Payment due December 20th
• 2026 and Beyond: Quarterly payments due 20th of month following quarter end

Registration Requirements:

• Separate registration required for each property address
• Update county within 30 days of any changes to contact or ownership information
• County registration number required for town permit completion

Contact Information

Town of Chatham - Building Department

Primary Contact for STR Permits

• Address: 488 State Route 295, Chatham, NY 12037
• Phone: (518) 392-1651
• Email: building@chathamnewyork.gov
• Alternate Email: building@chathamnewyork.us
• Fax: (518) 392-4934
• Hours: Monday and Thursday 9:00 AM - 4:00 PM; Tuesday 10:00 AM - 2:00 PM
• Building Inspector: Kent Pratt
• Important: Schedule appointments in advance, especially during busy season

Columbia County - Treasurer's Office

Primary Contact for County Registration and Tax Payments

• Phone: (518) 828-0513
• Email: Treasure@columbiacountyny.gov
• Registration Form: Google Forms Link for STR Registration
• Payment Portal: Columbia County STR Payment System

Additional Contacts

• Town Code Enforcement: Contact through Building Department
• Town Board: For policy questions regarding STR regulations
• Planning Board: For zoning-related STR questions

Source Links

Town of Chatham Documents

• Town STR Information Page: www.chathamnewyork.us/short_term_rental/index.php
• Building Department Page: www.chathamnewyork.us/departments/building_department/index.php
• STR Permit Application: www.chathamnewyork.us/document_center/Departments/Building%20Department/2024/STR_PermitApplication_5_14_2024%20DC.pdf
• Good Neighbor Leaflet Template: www.chathamnewyork.us/document_center/Short%20Term%20Rental/Good%20Neighbor%20Leaflet.pdf
• Local Law No. 6 of 2023: www.chathamnewyork.us/document_center/Announcements/2023/20240213115314.pdf
• Town Code: www.ecode360.com/?custId=CH1668

County Documents

• Columbia County STR Page: www.columbiacountyny.com/occupancy.html
• STR Registration Form: docs.google.com/forms/d/e/1FAIpQLSfjsf5lRHfHkZoHZlL6XbLa5lGQtmb_ilRJiMZu9FD5hQu3pA/viewform
• Payment Portal: columbiany-self.govplatform.com

Historical/Background Documents

• Times Union Article on Chatham STR Limitations: www.timesunion.com/business/article/Short-term-home-rentals-limited-in-Chatham-13901149.php
• 2020 Draft STR Law (Historical Reference): cms7files1.revize.com/chathamny/document_center/STR%20Draft%20Law%20for%20Public%20Hearing%20August%206,%202020%20from%20TOC%20Website.pdf

Important Note for Investors: This regulatory landscape reflects a maturing STR market in Chatham. The town's proactive approach balances property rights with neighborhood preservation, while Columbia County's tax structure ensures revenue generation from this economic activity. Success in this market requires careful compliance with both local permitting and county tax obligations, along with maintaining positive relationships with neighbors through the Good Neighbor Statement program and responsive local contact arrangements.