Overview: Are Short-Term Rentals Allowed in Honesdale, PA?

Yes, short-term rentals are allowed in Honesdale, PA, but with important regulatory requirements. Honesdale operates under a conditional use framework for short-term rentals in residential zones. This means that while short-term rentals are permitted, they require formal approval through a conditional use hearing process before operation can commence. Additionally, properties are subject to Wayne County's Short-Term Rental Ordinance adopted in June 2023, which established the regulatory framework for STRs throughout the county.

The town does not have specific standalone short-term rental laws, but hosts must comply with both state and county regulations, including tax collection requirements and zoning compliance. Properties located in R-2 Single-Family Residential Zone Districts can operate as short-term rentals through the conditional use process, as demonstrated by a recent application filed for a property on Grove Street.

How to Start a Short-Term Rental Business in Honesdale

Starting a short-term rental business in Honesdale requires a systematic approach involving multiple regulatory steps:

Step 1: Zoning Compliance and Conditional Use Application

First, you must determine if your property is located in an appropriate zoning district that allows short-term rentals. Based on available information, R-2 Single-Family Residential Zone Districts permit short-term rentals as conditional uses. You will need to:

• File an application for Conditional Use under the relevant sections of the Honesdale Borough Zoning Ordinance
• Submit your application to the Borough Secretary
• Prepare for a public hearing before the Honesdale Borough Council
• Demonstrate that your proposed use complies with all applicable zoning requirements

Step 2: Obtain Short-Term Rental Permit

After securing zoning approval, you must obtain a Short-Term Rental Permit from Wayne County:

• Submit the Short-Term Rental Permit Application (Document ID 6659)
• Ensure compliance with the county's Short-Term Rental Ordinance adopted June 14, 2023
• Contact the designated enforcement officer for permit requirements

Step 3: Tax Registration and Compliance

Register for and comply with all applicable tax obligations:

• Register for Pennsylvania state sales tax (6% rate)
• Register for Wayne County hotel tax (3% rate)
• Establish systems for collecting and remitting these taxes on all bookings

Step 4: Property Standards and Inspections

Ensure your property meets all applicable building and safety standards:

• Obtain any required UCC permits for structural changes or additions
• Consider floodplain regulations if your property is in a designated flood zone
• Maintain compliance with property maintenance and nuisance ordinances

Required Documents, Permits, Licenses, and Guidelines

Borough-Level Requirements:

1. Conditional Use Application - Filed under Sections 210-9, 210-10 and 210-38 and Articles IV and V of the Honesdale Borough Zoning Ordinance
2. Property documentation - Wayne County Tax Parcel information and deed records
3. Public hearing participation - Must attend scheduled Borough Council hearing

County-Level Requirements:

1. Wayne County Short-Term Rental Permit (Document ID 6659)
2. Compliance with Short-Term Rental Ordinance (adopted June 14, 2023)

State-Level Requirements:

1. Pennsylvania Sales Tax Registration - For collecting 6% state sales tax
2. UCC Building Permit (if applicable for structural work)
   • Detached accessory structures over 1,000 square feet
   • Any addition to dwelling units
   • Most decks
   • Structural changes or changes to means of egress
   • Swimming pools over 24" in height and all in-ground pools

Tax Registration:

1. Pennsylvania State Sales Tax - 6% rate
2. Wayne County Hotel Tax - 3% rate

Specific Regulations for Short-Term Rentals

Borough-Level Regulations:

• Zoning Compliance: Short-term rentals are permitted as conditional uses in R-2 Single-Family Residential Zone Districts
• Conditional Use Process: Requires formal application and public hearing before Borough Council
• Property Standards: Must comply with borough property maintenance and nuisance ordinances
• Floodplain Requirements: Properties in designated flood zones require special permits

County-Level Regulations:

• Short-Term Rental Ordinance (adopted June 14, 2023): Establishes countywide framework for STR regulation
• Permit Requirements: Annual or periodic permit renewals may be required
• Enforcement: County enforcement officer oversees compliance

State-Level Regulations:

• Tax Collection: Mandatory collection of 6% Pennsylvania state sales tax
• Uniform Construction Code: Compliance required for structural work and safety standards
• Municipal Planning Code: Governs land use and zoning procedures

Contact Information for Local Authority

Borough of Honesdale - Primary Contact:

• Phone: 570-253-0731, 570-362-5968
• Email: info@honesdaleborough.com
• Address: 958 Main Street, Honesdale PA 18431
• Contact: Borough Secretary (for conditional use applications)

Wayne County STR Permit Contact:

• Contact: Bob Bates
• Phone: 570-493-1716
• Email: bobbatesinspections@icloud.com
• Responsibilities: Short-term rental permit applications and county requirements

Wayne County Courthouse (General):

• Phone: 570-253-5970
• Address: 925 Court Street, Honesdale, PA 18431

Helpful Resources:

• Wayne County Website: waynecountypa.gov/637/Township-Regulations
• Honesdale Borough Website: honesdaleborough.com
• State UCC Information: www.dli.pa.gov/ucc/pages/default.aspx

Links to Source Pages

1. Wayne County Township Regulations: waynecountypa.gov/637/Township-Regulations
2. Short-Term Rental Application (Wayne County): waynecountypa.gov/637/Township-Regulations (Document ID 6659)
3. Honesdale Borough Conditional Use Information: honesdaleborough.com/conditional-use-hearing/
4. Honesdale Borough Zoning Application: honesdaleborough.com/wp-content/uploads/2025/05/Honesdale-Borough-Zoning-Application-2025.pdf
5. UCC Building Permit Application: honesdaleborough.com/wp-content/uploads/2025/01/UCC-Form.pdf
6. Pennsylvania UCC Information: www.dli.pa.gov/ucc/pages/default.aspx

Important Considerations for Investors

Regulatory Compliance: The conditional use process requires public notification and hearing, which may result in neighbor opposition. Factor this timeline and potential variability into your investment planning.

Tax Obligations: Total tax burden includes 6% state sales tax plus 3% Wayne County hotel tax, totaling 9% on gross rental receipts.

Property Standards: Properties must comply with both borough property maintenance standards and county STR requirements, which may necessitate property improvements before permit approval.

Market Dynamics: Honesdale's STR market shows seasonal peaks during summer months and fall foliage season, making dynamic pricing strategies essential for maximizing revenue.