Overview: Are Short-Term Rentals Allowed in Montgomery, NY?

Yes—short-term rentals (STRs) are permitted in the Town of Montgomery, New York (Orange County), but only under a formal, revocable permit regime with strict eligibility, safety, and operational standards. The key constraints are:

• Property type: Only single-family dwellings located within residential zoning districts may be used as STRs.
• Lot size: STRs are allowed only on lots of at least two (2) acres.
• Rental period: The STR use is defined as renting for not more than thirty (30) consecutive days.
• Permit required: Owners must obtain and maintain a Short-Term Rental Permit from the Town of Montgomery Building Department, issued for a two-year term and subject to renewal, inspection, and compliance.

Operators must meet rigorous safety and code requirements, maintain insurance, adhere to occupancy limits, and post required notices and documents on-site. Violations can trigger fines, permit suspension, or revocation.

Note: The provided sources also contain extensive materials for Montgomery County, Maryland—this guide focuses strictly on Montgomery, New York (Orange County), and cites only the NY-specific ordinance.

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

Step 1: Confirm Eligibility

• Confirm the subject property is a single-family dwelling located in a residential zoning district of the Town of Montgomery.
• Confirm the property sits on a lot of at least two (2) acres.
• Confirm septic and water systems meet state requirements (see standards below).

Step 2: Prepare Application Package

• Engage the Town of Montgomery Building Department early to obtain the STR permit application and confirm fee amounts (set by Town Board resolution).
• Assemble the mandatory documentation listed in the “Required Documents, Permits, Licenses, and Guidelines” section.
• Draft a to-scale floor plan for every level of the dwelling (see documentation requirements below).

Step 3: Submit Application and Fees

• Submit the complete STR permit application with all required signatures, documentation, and fees to the Building Department.
• The Department may decline incomplete applications or those with outstanding violations from a revoked permit within the prior two years.

Step 4: Neighbor Notification and Review

• The Town will notify adjacent property owners by first-class mail of the pending application.
• The Building Department will consider neighbor comments, but mere general objections alone are insufficient to deny an application. Determinations focus on undue disturbance risks (e.g., proximity of recreation facilities, excessive noise or light spill).

Step 5: Inspection and Approval

• The Building Department will inspect the property to certify compliance with all STR standards.
• If approved by the Building Department and Town Board, the STR permit will be issued and will specify occupancy limits, parking, contact information, and any conditions.

Step 6: Post-Permit Setup

• Post the permit, maximum occupancy, maximum parking, contact information, and standards inside and near the front entrance of the STR.
• Ensure the STR permit number is conspicuously displayed in all advertisements.
• Maintain required insurance coverage throughout the permit term.

Step 7: Ongoing Operations and Renewal

• Operate in strict compliance with safety, occupancy, parking, septic, water quality, garbage, and “good neighbor” requirements.
• Renew the permit at least 30 days prior to expiration (two-year term) and pass a renewal inspection.
• Maintain documentation (e.g., septic pumping records, fire extinguisher inspection logs, water tests) for inspection upon request.

Pre-existing STRs: If the property was actively operated as an STR for at least one calendar year prior to the effective date of the law, you may apply to continue the use, subject to standards and documentation within 60 days of the effective date; the law also includes specific continuity protections and restrictions on expansion for such pre-existing STRs.

Required Documents, Permits, Licenses, and Guidelines

Short-Term Rental Permit (Revocable; 2-year term; non-transferable)

• Obtain and maintain at all times; renewed at least 30 days prior to expiration.

Application Requirements (submitted to Building Department)

1. Signatures of all owners or designated agents.
2. Authorization for the Building Department to inspect the property.
3. Acknowledgment of present and ongoing compliance with STR standards, including adequate off-road parking.
4. Owner/manager list: names, addresses, telephone numbers, email addresses.
5. Primary contact person for immediate response to complaints and violations (24-hour response commitment).
6. Accurate, to-scale floor plan (at least 8.5x11 inches) certified by the applicant for each level, showing:
   • Building and required parking locations.
   • Basement: utilities, all rooms (including bedrooms), windows, exits, HVAC units.
   • First floor: all rooms, windows, exits, HVAC units.
   • Second floor: all rooms, windows, exits, HVAC units.
   • Attic (if present): all rooms, windows, exits, HVAC units.
7. Statement confirming no owner has had a STR permit revoked within the previous two years.

Insurance

• Provide and maintain “evidence of property insurance” and a “certificate of liability insurance” indicating the premises is rated as a short-term rental.

Property Documentation (for septic/water)

• Septic system pumped within the last four years; proof of pumping and satisfactory inspection by a qualified septic disposal firm; subsequent pumping at least once every four years thereafter.
• Water quality test for Total Coliform and E. coli with initial permit application and any subsequent renewals.

Operational Documentation

• Evacuation procedures posted in each sleeping room.
• Monthly fire extinguisher inspection log; inspected prior to each renter occupancy.
• Good Neighbor Statement (see standards) included in the rental contract.
• Rental contract containing: maximum occupancy, maximum on-site parking, and the Good Neighbor Statement.

Signage

• Optional signage (no more than six square feet per side; double-sided allowed; no internal illumination). Submit location, design, and dimensions to the Building Department for review and approval prior to issuance or installation. If the property has vehicular access on more than one road, one sign may front each road.

Fees

• Permit and renewal fees are set by Town Board resolution (confirm current amounts with the Building Department).

Specific Regulations for Short-Term Rentals in Montgomery, NY

Eligibility and Use

• Only single-family dwellings in residential zoning districts.
• No STRs of two- or three-family dwellings, multiple dwellings, or dwellings with accessory dwelling units.
• STRs must be on lots of at least two (2) acres.

Property Standards

• Compliance with all current New York State Uniform Building Codes and the Town of Montgomery Zoning Code.
• Smoke detectors: at least one in each sleeping room and one additional on each floor; carbon monoxide detectors as required by NYS Uniform Fire Prevention and Building Code.
• Evacuation procedures posted in each sleeping room.
• ABC fire extinguisher on each floor and in the kitchen; inspected monthly and prior to each rental; maintain logs.
• House number visible from both the road and driveway.
• Exterior doors operational; passageways to exterior doors clear and unobstructed.
• Electrical systems in good operating condition; labeled and visible during permitting; correct defects before issuance.
• Fireplaces must comply with all applicable laws and regulations.
• Off-road parking: minimum one space per bedroom (per floor plan).
• Pets permitted subject to Chapter 73 of the Town Code.
• Signage limited to non-illuminated signs up to six square feet per side, with Department approval.

Occupancy Limits

• Overall cap: Maximum occupancy not to exceed ten (10) people, including permanent residents and renters.
• Per-bedroom limit: Maximum two (2) people per bedroom.
• Special septic constraint: If the property has a septic system, overnight occupancy is capped at two persons per bedroom, a maximum of four bedrooms, and a maximum total of eight (8) persons.

Safety and Utilities

• Septic system must meet state requirements; pumped within the last four years; then at least every four years.
• Water supply must meet state requirements; provide Total Coliform and E. coli tests at application and renewal.
• Weekly garbage removal during rentals; containers secured with tight-fitting lids; placed where not clearly visible from the road except near pick-up times.

Rental Contract and Good Neighbor Standards

• The rental contract must include the following:
  1. Maximum occupancy (2 people per bedroom, not to exceed 10 total).
  2. Maximum on-site parking provided.
  3. Good Neighbor Statement, specifying:
     • The STR is in a residential area; renters should be considerate of neighbors.
     • Quiet hours: 10:00 p.m. to 7:00 a.m.; no conduct violating Chapter 165 (Noise) or constituting disorderly conduct/public nuisance.
     • Renters are subject to New York Penal Law § 240.20 (disorderly conduct).
     • Littering is illegal.
     • Renters and guests must not block or impede ingress/egress over the street or to/from driveways.
     • Small recreational campfires must be attended personally and comply with NYS DEC requirements.

Process and Inspections

• Permit applications filed with the Building Department; only complete applications accepted.
• Adjacent property owners notified of the application by first-class mail with delivery confirmation.
• Building Department review period: up to 30 days after acceptance to consider comments and conduct an inspection.
• General objections alone are insufficient to deny; determinations focus on undue disturbance risks.

Display Requirements

• The STR permit, maximum occupancy, maximum parking, contact form, and standards must be posted inside and near the front entrance.
• The STR permit number must be conspicuously displayed in all advertisements.

Existing Short-Term Rentals

• Pre-existing STRs (operated for at least one calendar year prior to the effective date) may continue indefinitely subject to:
  • Application within 60 days of the effective date.
  • Documentary proof (ads, financial records, tax returns).
  • No enlargement, alteration, extension, reconstruction, or restoration that increases nonconformity; no relocation to a different portion of the lot that increases external evidence; no reestablishment after discontinuation for one year or more (restoration after natural disaster permitted).
• Pre-existing STRs outside enumerated residential districts are deemed sufficiently objectionable to prevent additional STRs in those districts.

Compliance, Penalties, and Enforcement

• The Building Department may investigate complaints and take enforcement actions, including:
  • Attach conditions to the permit.
  • Suspend the permit.
  • Require corrective action within 30 days (failure risks revocation).
  • Issue court appearance tickets.
  • Revoke the permit (new permits prohibited for two years post-revocation).
• Penalties (per violation):
  • First offense: Up to $350 fine or up to 15 days imprisonment, or both.
  • Second offense (within five years): $500–$700 fine or up to 15 days imprisonment, or both.
  • Third or subsequent offense (within five years): $1,000–$1,500 fine or up to 15 days imprisonment, or both.
  • Each week’s continued violation constitutes a separate violation.
  • Imminent hazard to health and safety: punishable as above plus up to six months imprisonment per violation.
  • Civil penalty: Up to $100 per violation; continuous violations incur daily penalties.
• Expenses of enforcement (including legal fees) may be charged to the offender in addition to criminal/civil penalties.

Permit Renewal

• Renewal at least 30 days prior to expiration; requires prior permit presentation and a renewal inspection to certify continued compliance.
• Any violations must be remedied before renewal.

Grounds for Immediate Suspension or Revocation

• Falsification or failure to provide required information.
• Noncompliance with any provision of the STR Chapter or Town Code.
• Violations of New York Penal Law related to the STR occupancy.
• Conduct disturbing health, safety, peace, or comfort of the neighborhood or creating a public nuisance.
• Removal or disrepair of safety devices (smoke/CO detectors, fire extinguishers, egress).

Appeals

• Denied applications or suspensions/revocations may be appealed to the Zoning Board of Appeals by filing with the Town Clerk and the Board within 60 days of the Building Department’s filing.
• Hearings held within 45 days of the notice of appeal.
• Appeals generally stay the suspension or revocation, unless the Building Inspector determines a stay would cause imminent peril to life and property.

Contact Information: Local Authority in Charge of STRs

• Authority: Town of Montgomery Building Department (Short-Term Rentals—Chapter 186)
• Address: Town of Montgomery, NY (Building Department)
• Phone and email: Not provided in the source documents. Contact the Town through the official website for current Building Department contact details.

Website:

• Town of Montgomery (official site for contacts, forms, and updates): townofmontgomery.com

Links to Source Pages

• Town of Montgomery, NY—Introductory Local Law No. 7 of 2025 (Short-Term Rentals—Chapter 186): townofmontgomery.com/Portals/8/Documents/