Thinking about buying a place in Catskill that you can enjoy and also rent to guests? Short-term rentals can work here, but your numbers only pencil out if you understand the rules, seasonality, and true costs. This guide shows you what applies in Catskill, how to pressure-test your returns, and the local steps that keep you compliant and neighbor friendly. Let’s dive in.
Know the rules in Catskill
Operating legally in Catskill depends on where the property sits. The Village of Catskill maintains its own short-term rental permit process, including applications and inspections managed by the Code Enforcement Office. You can find the permit information on the Village’s official site under the Short-Term Rental forms and notices. Review the Village’s STR permit page.
If the property is in the Town of Catskill, the Town Code has a dedicated short-term rental chapter that spells out permits, safety inspections, occupancy limits by bedroom count, off-street parking, garbage plans, a required local contact for non-owner-occupied units, and visible posting of the permit. Persistent violations can trigger fines or permit suspension. Read the Town’s STR standards and enforcement process.
The Village has also set permit fees. Local reporting notes an initial permit around 375 dollars and a renewal around 125 dollars, along with inspections before issuance. Operating without a permit can lead to higher fees or court action. See local coverage of Catskill’s STR law and fees.
At the state level, New York created a short-term rental registry and strengthened tax parity so STRs are treated more like hotels for tax purposes. Counties and municipalities can receive platform reporting, and hosts must register and remit correctly. Get the statewide registry overview.
Finally, Village leaders have discussed a local occupancy tax of about 4 percent on stays under 90 days. If implemented, this would be a recurring deduction from gross revenue. Confirm current status with the Village Clerk. See reporting on Village discussions.
Gauge demand and seasonality
Catskill benefits from broader Catskills tourism. Regional attractions like Kaaterskill Falls and nearby trail systems have seen increased visitation in recent years, which supports a baseline of leisure demand. Expect strong peaks around outdoor seasons and holidays, with softer winter and shoulder periods. Read about rising Catskills visitation.
Supply matters too. Local reporting noted a notable rise in Village listings before stricter permitting, which influenced the current rules. That density is a reminder to check competition in your immediate neighborhood. See local context on STR growth.
For your forecast, pull monthly average daily rate and occupancy data for your specific area from a paid STR analytics provider. This will help you reflect Catskill’s true seasonality and listing mix. Start with a Town of Catskill market snapshot.
Build a responsible pro forma
Revenue inputs
- Available nights each month after owner stays and blocks.
- Occupancy rate by month so you capture seasonal swings.
- ADR by month and listing type, such as entire home versus private room.
- Gross rental revenue as the sum of ADR times occupied nights.
- Additional guest fees like cleaning or pet fees. Be conservative, since high fees can reduce bookings.
Expense inputs
- Platform fees to hosts, often around 3 percent depending on platform.
- Management fees if you use a manager. Full service can run 15 to 30 percent of rental revenue.
- Cleaning per booking and seasonal deep cleans.
- Utilities, internet, landscaping, snow removal, and consumables.
- Maintenance and repair reserve. Many owners set 5 to 10 percent of gross revenue.
- Insurance premium increase for STR use and required liability limits.
- Property taxes and any special assessments.
- Permit and inspection fees, plus state or county registrations as needed.
- Mortgage interest and principal if financed.
Capital and one-time items
- Furnishings, linens, kitchen gear, and initial stock of supplies.
- Safety upgrades required by code, including smoke and CO alarms, fire extinguishers, and clear egress.
Taxes and accounting
- Sales and occupancy taxes. Platforms may collect some taxes, but you remain responsible for correct registration and remittance.
- Income tax on net rental income. Short-term rentals can be treated differently based on participation, so keep clean books and consult a CPA. Read a summary of New York’s STR tax requirements.
Financing assumptions
- Loan type influences down payment, rate, and reserves. Some lenders offer DSCR or portfolio loans that underwrite based on rental income.
- If your deal relies on projected STR cash flow, underwrite conservatively and verify lender requirements upfront. See an overview of STR financing options.
Stress test your numbers
- Model base, optimistic, and conservative cases by changing occupancy and ADR by 10 to 20 percent.
- Toggle management on and off, since a full-service manager may shift net income materially.
- Flex cleaning and maintenance by plus or minus 20 percent to reflect turnover swings.
- Add a regulatory shock case. For example, a 4 percent occupancy tax or a temporary cap that reduces revenue.
- Keep a cash reserve equal to 3 to 6 months of operating costs.
Local due diligence checklist
- Confirm whether the property is in the Village or Town and which rules apply.
- Verify zoning, any historic district status, and whether STR use is permitted for that parcel.
- Request copies of current permits, inspection reports, and proof of required insurance from the seller.
- Check septic design and capacity if the property is not on sewer.
- Confirm off-street parking that matches maximum permitted occupancy.
- Get insurance quotes for short-term rental coverage and required liability limits.
- Verify registration and tax remittance responsibilities, including any local occupancy tax.
- Review HOA or condo bylaws for any rental limits.
- Ask about past nuisance complaints and enforcement history.
- Pull neighborhood STR comps for ADR, occupancy by month, and minimum-stay patterns.
Operate smart and neighbor friendly
A reliable local contact is required for non-owner-occupied units in the Town. Build a response plan for guest issues and urgent calls. Set clear house rules for quiet hours, parking, and trash, and include an easy-to-follow garbage plan to avoid wildlife issues. Keep safety gear visible and maintained, and post the permit inside the home as required.
What this means for buyers and sellers
If you are buying, start with the rules, then use data to build a month-by-month forecast that includes every cost. If you are selling an STR, gather permits, inspections, accurate trailing revenue, and expense records so buyers can underwrite with confidence. In both cases, a clear, conservative model will protect your downside and support better decisions.
Ready to explore opportunities in Catskill or nearby Hudson Valley towns? Reach out to Jennifer Mangione - Grist Mill Real Estate for local guidance and hands-on representation.
FAQs
Catskill short-term rental permits: do I need one in the Village and the Town?
- Both the Village and the Town have STR rules, and you should verify which jurisdiction your address falls under and follow that permit process, including inspections and display of the permit.
Catskill STR taxes: what should I plan for?
- Plan for state sales tax and any applicable county or local occupancy taxes, register per state guidance, and confirm whether your platform collects and remits on your behalf.
Catskill STR safety rules: what are the basics?
- Expect requirements for smoke and CO alarms, fire extinguishers, clear egress information, occupancy limits tied to bedrooms, off-street parking, and a local contact for non-owner-occupied units.
Modeling returns in Catskill: how do I estimate ADR and occupancy?
- Use a paid STR analytics provider for neighborhood-level ADR and occupancy by month, then apply seasonality and run conservative, base, and optimistic scenarios.
Financing an STR in Catskill: can projected income help me qualify?
- Some lenders use DSCR or portfolio products that consider rental income, but terms vary, and you should underwrite conservatively and maintain strong cash reserves.