High nightly rates are tempting, but a single missed permit or tax can erase a season’s profit. If you own or plan to acquire a Hamptons rental, you face layered rules from New York State, Suffolk County and each town or village. The good news: with the right strategy, you can stay compliant, protect income and keep your calendar full. This guide shows you how to structure your leasing, taxes and operations the right way. Let’s dive in.
The Hamptons rules at a glance
Three layers of oversight
You must comply with New York State rules, Suffolk County taxes and the local town or village code where the property sits. New York now applies sales tax to short-term rental occupancy starting March 1, 2025, which affects pricing and reporting. Review state guidance on short-term rental taxation in the Department of Taxation’s instructions for sales tax filings to understand collection and remittance details (state guidance). Suffolk County also imposes a hotel/motel occupancy tax on rentals under 30 days, with separate registration and remittance requirements (county occupancy tax). Towns and villages add their own rules. East Hampton, for example, requires a rental registry, a notarized self-inspection and a registry number in any advertisement (East Hampton Rental Registry).
Why this matters for pricing
Combined state and local taxes raise the all-in cost of short stays. Build tax into your nightly and weekly rates, and confirm who remits taxes when bookings come through a platform. Your lease and operating plan should reflect these costs and responsibilities to avoid shortfalls.
Choose your rental model wisely
Short-term stays under 30 days
Short-term stays trigger state sales tax and the Suffolk County occupancy tax. Many Hamptons jurisdictions also set minimum-stay lengths or limit frequent under-two-week rentals. Treat town and village codes as decisive, and verify the rules where your property sits (Long Island STR overview).
Seasonal or long-term leases
Stays of 30 consecutive days or more are not subject to the county occupancy tax, but you still must follow local registration and safety rules if required. New York security deposit laws apply, including how deposits are held and returned (NY security deposit rules).
Very short rentals and the 14-day exception
If you use the home personally and rent it for fewer than 15 days in a year, the IRS generally does not require you to report that rental income. Track days closely because tax treatment changes once you cross that threshold (IRS Publication 527).
Registration, permits and taxes
Register before you advertise
Many towns require a rental registry number before you list the property. East Hampton actively enforces its registry, self-inspection checklist and registry number display in ads, and non-compliance can lead to fines (East Hampton Rental Registry).
Set up tax collection and remittance
You are responsible for collecting and remitting New York sales tax on short-term occupancy starting March 1, 2025, plus the Suffolk County occupancy tax on stays under 30 days (state sales tax details; county occupancy tax). Some platforms have agreements with the county to streamline remittances, but you still must confirm what is and is not collected on your behalf and keep records (Suffolk County platform agreement).
Keep permits and inspections current
Check for required safety inspections, renewal cycles and fees. Ensure your Certificate of Occupancy and any open permits are in order, because missing documents can block a rental permit (Building Department reference).
Draft compliance-first leases
Use clear, enforceable language tailored to Hamptons rules. Have local counsel review your forms. Key clauses to include:
- Purpose and permitted use: define whether the property is for long-term, seasonal or short-term use, and set minimum and maximum stay lengths.
- Compliance obligations: require adherence to all laws and codes, including registry, occupancy, septic, noise and parking. Make violations a material breach and require the registry number in any listing where applicable (East Hampton Rental Registry).
- Tax collection and indemnity: assign responsibility to collect and remit sales and occupancy taxes, require proof on request and include indemnity for failures.
- Subletting and platform listings: prohibit sublets and third-party listings unless you approve in writing and all permits and insurance are in place.
- “Party house” and nuisance rules: set guest limits, quiet hours and parking requirements, and authorize termination for violations.
- Local contact: require a local manager or contact able to respond within any mandated window; list contact information in the lease and any STR ad (local response examples).
- Registration and permit cooperation: require cooperation to obtain and maintain required permits, with audit rights for the owner.
- Insurance: require appropriate STR or commercial liability coverage. Municipal benchmarks commonly range from $300,000 to $1,000,000 per occurrence in various New York regimes (insurance benchmarks example).
- Records and reporting: require booking logs, occupant counts and copies of tax filings.
- Security deposits: follow New York’s statutory rules on holding and returning deposits, and send timely itemizations when required (NY security deposit rules).
Safety and operations standards
Safety items to verify
Install and test smoke and carbon monoxide detectors, pool alarms and fencing, visible house numbers and fire extinguishers. Confirm septic capacity and any occupancy limits tied to systems. Some towns require an annual safety self-inspection; East Hampton’s notarized checklist is a common example (East Hampton Rental Registry).
On-the-ground management
Post house rules, trash schedules and parking instructions inside the property. Keep a written log of complaints and incidents. Use platform settings to display your registry number, occupancy limits and minimum stay, and block calendar patterns that violate local rules.
Town-by-town differences
East Hampton
Expect a strict rental registry, a notarized self-inspection and active enforcement. The town targets frequent very short stays and requires the registry number in ads.
Southampton and incorporated villages
Rules vary among the town and its villages. Some localities require minimum stays such as 14 days and may have seasonal limits. Always confirm the code for the specific village or hamlet noted in your deed or tax bill.
North Fork and surrounding towns
Southold, Shelter Island and other areas set their own minimums, annual caps and enforcement processes. Some are revising rules, so checking current ordinances before listing is essential.
A step-by-step prep checklist
Gather local rules: pull the town or village rental code, zoning, registry forms and fee schedules, and speak with the building department staff for clarifications (rental registry example).
Verify physical compliance: confirm Certificate of Occupancy, close out permits, and meet safety requirements like detectors, pool protections and visible addresses (Building Department reference).
Build a tax plan: determine which taxes apply, whether your platform remits any portion and how you will file and pay on schedule (state sales tax details; county occupancy tax).
Secure insurance and operations: obtain STR-appropriate liability coverage and appoint a local contact with defined response times (insurance benchmarks example).
Finalize documents: draft leases and manager agreements with compliance, indemnity and audit provisions, and require the registry number in ads.
Calendar renewals and audits: track permit renewals, tax deadlines and annual safety checks; reconcile platform remittance reports.
Risk, enforcement and insurance
Penalties for non-compliance can include daily fines, late tax interest and even criminal exposure in extreme cases. Suffolk County actively enforces occupancy tax and assesses penalties for late or missing payments (county occupancy tax). Jurisdictions may cooperate with platforms or obtain booking data to monitor compliance, which makes accurate records vital (Suffolk County platform agreement). Pair clear lease indemnities with appropriate STR or commercial coverage to protect against guest incidents and municipal fines where permitted by law.
Put a compliant plan in place
A thoughtful approach can turn compliance into a competitive edge. Set your operating model, register early, price for taxes, and enforce your rules through best-in-class leases and systems. If you want a practical roadmap for your specific address and rental goals, connect with Margot Reutter for discreet, data-driven guidance.
FAQs
Are weekend rentals allowed in the Hamptons?
- It depends on the town or village. Many local codes set minimum stays or limit frequent short bookings, so confirm the exact rules for your property’s jurisdiction before advertising.
What taxes apply to a 10-day summer rental in Suffolk County?
- Short stays typically trigger New York State sales tax starting March 1, 2025, plus the Suffolk County occupancy tax. Plan to collect and remit both unless your platform’s agreement specifically covers them and you maintain documentation.
Do I need a rental registry number before listing my East End home?
- Many jurisdictions require registration before advertising. East Hampton, for example, requires a registry and number displayed in ads, along with a safety self-inspection.
How should I handle security deposits on New York rentals?
- Follow New York’s statutory rules for holding deposits separate, providing bank notices when required and returning itemized deductions within legal timeframes.
Will Airbnb or VRBO handle all of my taxes for Hamptons bookings?
- Not always. Platforms may remit certain taxes under agreements, but you remain responsible for any taxes not covered, plus all local permits and registry compliance.
