Short-term rentals (STRs) of 30 days or less (e.g., Airbnb/VRBO) exist in Christiana Borough but remain in a regulatory gray area. As of May 2023, Christiana Borough Council held an extended discussion about STRs and tasked staff with preparing a draft ordinance while exploring whether STRs could be prohibited entirely. No final ordinance had been adopted at the time of the report; Council was weighing policy options, including allowing STRs only in commercial zones, requiring permits or special exceptions, and instituting inspection requirements. The borough’s planning commission was directed to draft an ordinance based on similar municipalities. Consequently, STRs are not explicitly permitted by borough ordinance as of that date, but the borough has recognized existing STR activity and is actively considering regulations.

Given Pennsylvania’s framework, STRs can be regulated via local zoning and permitting. Some municipalities prohibit STRs in residential zones; others allow them by-right, by special exception, or by conditional use with permits and inspections. Strasburg Borough was cited as an example of a nearby municipality that prohibits STRs completely. Christiana’s path is pending.

How to Start a Short-Term Rental Business in Christiana, PA

• Confirm legal eligibility before listing:
  • Verify that your zoning district allows STRs. Council member Glenn Kendig favored allowing them only in commercial zones; residential zones may be off-limits or require a special exception or conditional use.
  • If no borough ordinance exists, a “legal nonconforming use” argument may not protect STR activity if the borough later prohibits or restricts STRs. Monitor borough actions and consult the borough solicitor for definitive guidance.
• Choose a property strategy:
  • Owner-occupied “homestay” (host present) is typically the least regulated category at the state level and often requires fewer local approvals than fully commercial operations.
  • Vacation rentals (owner not present) are more likely to be treated as commercial and face stricter zoning, permitting, and inspection requirements.
• Understand likely permitting and approvals:
  • Expect a borough-level permit or license once an ordinance is adopted; some municipalities require registration on a municipal STR registry.
  • A zoning permit may be necessary, either by-right or as a special exception/conditional use in designated districts.
  • Structural, fire, and life-safety inspections will likely be required if the borough follows the pattern of nearby municipalities.
• Comply with taxation and registration:
  • Register with the Pennsylvania Department of Revenue (DOR) and collect/remit PA state hotel occupancy tax (6%) if you do not exclusively use a booking agent.
  • If you exclusively list through a booking agent (e.g., Airbnb/VRBO), the booking agent may collect and remit the state tax on your behalf.
  • Check county hotel tax obligations. Lancaster County is a third-class county, authorized to impose a hotel tax up to 5%; confirm the current county rate and collection process.
• Prepare operations:
  • Adopt occupancy limits, parking plans, and guest rules aligned with anticipated borough standards (noise, trash, signage restrictions are common).
  • Maintain safety equipment (smoke/CO alarms), post emergency contacts, and display local rules as required by local ordinances.
  • Obtain adequate liability insurance; home policies often exclude home-based business use, and a rider or standalone STR policy may be necessary.
  • Keep rental records for at least two years, including guest names, contact details, check-in/out dates, and all occupants (per best-practice guidance in similar PA municipalities).

Required Documents, Permits, Licenses, and Guidelines

• Documents:
  • Property deed or lease evidencing legal ownership/control.
  • Proof of property insurance; liability coverage specific to STR use recommended.
  • Emergency contact information and on-site guest rules (noise, parking, trash/recycling).
  • Basic safety plan and maintenance logs for alarms, extinguishers, egress routes, and occupancy limits.
• Permits and licenses (anticipated if ordinance is adopted):
  • Borough STR license/permit (annual renewal typical).
  • Zoning permit confirming STR use is permitted in the district (by-right, conditional use, or special exception).
  • Safety inspections (smoke/CO alarms, fire extinguishers, structural/electrical/plumbing checks if required).
  • Municipal registry listing (some PA municipalities require registration of all STR properties).
  • Business license: generally not required unless a state or county sales/use/hotel tax license is necessary for your specific tax collection setup.
• Guidelines and safety standards (typical PA standards; confirm with local ordinance):
  • Smoke and carbon monoxide alarms installed per state requirements.
  • Posted occupancy limits and emergency procedures.
  • Signage and exterior appearance restrictions to preserve residential character.
  • Noise, trash, and parking management rules.
  • Record-keeping requirement: maintain guest records for at least two years (addressed in statewide best-practice recommendations).

Specific Regulations for Short-Term Rentals: Borough, County, and State

• Borough-level (Christiana Borough):
  • Status: Under active consideration (May 2023). Council discussed allowing STRs only in commercial zones, requiring permits or special exceptions, and instituting inspections. A draft ordinance was assigned to the planning commission.
  • Enforcement: Ordinance violation typically proceeds via municipal enforcement, citations, and potentially removal of STR status.
  • Near-term actions: Monitoring borough council and planning commission meetings is essential for final rules, fees, and enforcement details.
• County-level (Lancaster County):
  • Municipal zoning, not county zoning, governs STRs in Christiana. However, county public health and housing rules (for lodging establishments such as hotels/motels/rooming houses) may apply to commercialized properties.
  • Hotel (transient) tax: Lancaster County, as a third-class county, is authorized to impose a hotel tax up to 5%. Confirm the current county rate and whether county tax is collected at the state level or locally. Booking agents may also collect county taxes.
• State-level (Pennsylvania):
  • Lodging and Housing Code (Title 48): Defines “lodging establishment” broadly to include many short-term rentals; transient lodging is occupancy for less than 30 days (or day-to-day basis beyond 30 days). Requires recordkeeping, order maintenance, and guest safety measures.
  • Landlord and Tenant Act: Governs leases; STRs typically fall outside standard landlord-tenant protections given their transient nature.
  • Municipalities Planning Code: Grants boroughs authority to regulate land use through zoning ordinances; STRs must be explicitly permitted where they are allowed. Prohibitions in residential zones are permissible if clearly stated.
  • Taxes:
    • State hotel occupancy tax: 6% on rentals shorter than 30 days.
    • Personal income tax: Short-term rental income is taxed as business income; PA personal income tax rate is 3.07% (2024–2025).
    • Property tax: Homestead exclusions may be reduced if the home is not the owner’s primary residence during portions of the year.
    • Insurance: Homeowners policies often exclude business-related activities; riders or separate STR policies are advisable.
  • Litigation precedent: The Pennsylvania Supreme Court (Slice of Life) confirmed municipalities may prohibit purely transient, commercial STR use in residential zoning districts; the use must be expressly permitted in the zoning ordinance to be lawful.

Contact Information for Local Authority in Charge of STRs

• Christiana Borough

  • Address: 10 W. Slokom Ave., Christiana, PA
  • Phone: 717-291-8611 (LNP Media Group telephone directory listing; call to be directed or ask for borough office contact)
  • Online: Contact borough offices or attend council meetings for updates; the borough secretary was tasked with solicitor inquiry and ordinance drafting (per May 2023 council discussion).

• Pennsylvania Department of Revenue (Hotel Occupancy Tax)

  • Phone: Not specified in provided sources
  • Website: pa.gov (DOR resources on sales/use/hotel occupancy tax and home-sharing)

• Joint State Government Commission (State Research)

  • Room 108 Finance Building, 613 North Street, Harrisburg, PA 17120
  • Phone: 717-787-4397
  • Email: jntst02@legis.state.pa.us
  • Website: jsg.legis.state.pa.us

Links to Source Pages

• Christiana Borough Council discusses short-term rentals (LNP | LancasterOnline)
  • lancasteronline.com/news/regional/christiana-borough-council-discusses-short-term-rentals/article_3263ccf2-ed23-11ed-86c2-13e8f701d272.html
• The Short-Term Rental Industry in Pennsylvania (Joint State Government Commission, March 2025)
  • jsg.legis.state.pa.us/resources/documents/ftp/publications/2025-03-17%20Short-term%20Rental%20Web%203.17.25.pdf

Practical takeaway: In Christiana, treat STRs as a discretionary use pending a final ordinance. Confirm zoning eligibility, prepare for potential permitting and inspections, and put in place robust safety, recordkeeping, and tax compliance procedures now so you can list with confidence once the borough adopts its rules.