Overview

Short-term rentals (STRs) are explicitly permitted in Penn Yan, New York, subject to strict regulations. To operate legally, an STR owner must obtain two primary approvals from the village government: a Short-Term Rental (STR) Permit from the Office of Zoning & Building Inspection and a Special Use Permit from the Planning Board. The process is designed to ensure compliance with local zoning, safety, and community standards.

1. Overview: Legality of Short-Term Rentals in Penn Yan, NY

Short-term rentals are a conditionally permitted use in the Village of Penn Yan. They are defined as "sleeping rooms with a bathroom facility, offered for compensation for periods of less than 30 consecutive days per occurrence." The village has established a clear regulatory framework under its code, requiring both a permit and a special use approval for operation. This allows the local government to monitor and manage the impact of STRs on the community.

2. How to Start a Short-Term Rental Business in Penn Yan, NY

The process to launch a compliant STR involves a series of sequential steps, culminating in final approvals and inspections.

Step 1: Pre-Application Preparation

• Confirm Zoning: Verify that your property is located within the village limits and is zoned for a use that allows for a short-term rental as a special exception. Review the Village's Use Regulation Table and the Zoning Map.
• Assemble Documentation: Begin gathering all required support documentation well in advance. This includes the deed, insurance certificates, and a detailed floor plan. If the property is owned by an entity (LLC, partnership), obtain the underlying legal documents.

Step 2: Submit the STR Permit Application

• Complete the official Short-Term Rental Permit Application. This form requires detailed information about the property, owner(s), and proposed manager.
• Pay the initial permit fee, which is tiered based on owner residency:
  • $500: Owners (51%+) who are residents of the Village of Penn Yan.
  • $1,500: Owners (51%+) who are residents of Yates County.
  • $2,500: Owners, all other.

Step 3: Apply for Special Use Permit and Site Plan Review

• Submit the Site Plan Review and Special Use Permit Application to the Planning Board. This step is mandatory and concurrent with the STR permit application.
• Environmental Review: Complete and submit a Short Environmental Assessment Form (SEQR) as part of the special use permit process.
• Submit a detailed site plan and a comprehensive floor plan of the rental structure.

Step 4: Inspection and Final Approval

• Upon application acceptance, the Code Enforcement Officer will schedule an inspection of the property. A STR Inspection Checklist is available to help prepare for this.
• After successful inspection and approval from both the Zoning Office (for the STR permit) and the Planning Board (for the Special Use Permit), you will be issued your STR permit. The permit is valid for one year.

Step 5: Operational Launch

• Post Permit: Prominently display the STR permit and the Certificate of Authority to Collect Occupancy Tax near the main entrance.
• Prepare Guest Information: Create a policy statement for guests that includes maximum occupancy, parking rules, and "good neighbor" guidelines (e.g., noise curfews).
• Advertising: Conspicuously display the STR permit number in all advertisements (e.g., Airbnb, VRBO).
• Compliance: Operate in full compliance with all village codes and the New York State Uniform Fire Prevention and Building Code.

3. Required Documents, Permits, Licenses, and Guidelines

To operate an STR, the following are required:

Permits:

• Short-Term Rental (STR) Permit (Office of Zoning & Building Inspection)
• Special Use Permit (Planning Board)
• Certificate of Authority to Collect Occupancy Tax (from the New York State Department of Taxation and Finance)

Support Documentation for Applications:

• Current deed.
• Legal document creating the entity (if owned by an LLC, partnership, etc.).
• Liability insurance certificate indicating the premises is rated for short-term rental use.
• Completed Short Environmental Assessment Form (SEQR).
• Detailed, to-scale floor plan of all floors (basement, all levels, attic).
• Site plan per application checklist.

Ongoing Guidelines:

• Compliance with the Village Code and the New York State Uniform Fire Prevention and Building Code at all times.
• Adherence to the "Acknowledgement of Standards" outlined in the application, including good neighbor policies and parking restrictions.
• Management by a designated agent who is available 24/7 and within 30 miles.

4. Specific Regulations for Short-Term Rentals (Village, County, State)

Village of Penn Yan Regulations:

• Permit Validity: One year, non-transferable, and revocable.
• Renewal: Required annually. Permits expired for over three months require payment of the initial fee upon renewal. Renewal fees are $50 (Village resident), $150 (Yates County resident), or $250 (all others).
• Occupancy and Parking: Maximum occupancy is based on the number of sleeping rooms, as determined by the Zoning Office. All parking must be on a paved driveway on the property; street or unpaved yard parking is prohibited.
• Property Manager: A local property manager is mandatory and must be available 24/7 during rental periods.
• Nuisance Control: Renters must adhere to strict good neighbor guidelines, including noise curfews (outdoor events only between 10 a.m. and 10 p.m.), and restrictions on excessive noise, fumes, glare, or vibrations.
• Inspections: Properties are subject to regular fire safety and property maintenance inspections, as mandated by local law.
• Advertising: Exterior advertising is prohibited. The permit number must be displayed in all online and print advertisements.

Yates County and New York State Regulations:

• Occupancy Tax: Hosts are required to collect and remit New York State's applicable occupancy tax. A Certificate of Authority from the state is needed to collect this tax.
• Building Codes: All STR properties must comply with the New York State Uniform Fire Prevention and Building Code. The state has adopted the 2025 versions of these codes, which take effect on December 31, 2025.

5. Contact Information for Local Authority

Office of Zoning & Building Inspection

• Address: PO Box 426, 111 Elm Street, Penn Yan, NY 14527
• Phone: 315-536-6397
• Hours: Monday - Friday, 7:30 AM - 4:30 PM
• Code Enforcement Officer: James Marshall III
  • Email: [Email Protected]
• Secretary: Katie Tomlinson
  • Email: [Email Protected]
• Website: https://www.villageofpennyan.com/zoning-and-building.html

6. Important Links to Source Pages

• Short-Term Rental Permit Application: Village of Penn Yan STR Application
• Site Plan Review and Special Use Permit Application: Site Plan Review and Special Use Permit Application
• Short Environmental Assessment Form (SEQR): SEAF Part One
• Village Zoning Code - STR Section: Local Law § 202-20.16 Short-term Rentals
• STR Inspection Checklist: STR Property Inspection Checklist
• Fee Schedule: Village Fee Schedule
• Airbnb Help Center - Penn Yan, NY: Airbnb Article on Penn Yan Regulations (for additional information on permit fees and renewals)
• Recent News Update: STRisker - Daily Regulatory Notes 05/21/2025 (mentions Penn Yan Village Board's discussion on implementing routine inspections for STRs).