Short-term-rental rules
Can you Airbnb in Chester (Town), NY?
Researched and reviewed by Jake Lee, FounderCurrent as of July 2026How this atlas is maintained
The Town of Chester allows whole-home short-term rentals (stays under 30 days), but only in the SR-1, SR-2, LB-SL, and AR-3 residential zones and only with Building Department registration and a permit that must be renewed, with an inspection, every year. You also need at least $1,000,000 in liability insurance, written HOA consent where applicable, and you must notify the town 24 hours to 30 days before each rental stay. Non-owner-occupied single-family homes qualify; two-family homes must be owner-occupied to operate.
What the rules say in Chester (Town)
- Short-term rental is defined as offering any residential dwelling, or space therein, for a fee for a period of less than 30 days, including Airbnb and VRBO listings (§ 98-29.1-4).
- STRs are permitted only in the SR-1, SR-2, LB-SL, and AR-3 residential zones; STRs already operating in other zones at adoption could continue only if they registered with the Building Department within 30 days (§ 98-29.1-5(A), (B)).
- Only single-family dwellings, legal owner-occupied two-family dwellings, or mixed-use structures with a valid certificate of occupancy may be used as short-term rentals (§ 98-29.1-5(C)).
- The property must be registered with the Town Building Department and pass a Building Inspector inspection before a permit is issued; permits and inspections must be renewed every year (§ 98-29.1-6, § 98-29.1-7(C)).
- The permit application requires proof of liability insurance of at least $1,000,000 per occurrence, and proof of properly maintained onsite water/septic where not on municipal utilities (§ 98-29.1-6(B)).
- The town must be officially notified of each rental use no less than 24 hours and no more than 30 days before the stay, via the town website or in person (§ 98-29.1-7(A)).
- Written consent from the HOA must be submitted with the application if the property is in an HOA development (§ 98-29.1-5(E)).
- No advertising or signage is permitted on the property; interior signage on occupancy, parking, garbage, and the local contact is required, and the owner must keep a guest registry available to the town (§ 98-29.1-5(G), (H), (J)).
- Gatherings of 20 or more people require a Special Use Permit from the Building Department (§ 98-29.1-5(K)).
- All STRs must comply with the Orange County Hotel and Motel Occupancy Tax (Local Law No. 13 of 2009) (§ 98-29.1-5(D)).
- A resident agent, if designated, must be an individual residing within Orange County (§ 98-29.1-4).
- Violations are punishable by fines up to $500 per violation and $750 per day for subsequent offenses; more than 2 violation notices in any 12-month period triggers a 6-month suspension from holding an STR permit (§ 98-29.1-10(B), § 98-29.1-8(F)).
Sources: Town of Chester (Orange County, NY) Local Law No. 1 of 2022, Short-Term Rentals (official town PDF); Town of Chester Building Department (lists Short Term Rentals as requiring a permit; 2025 STR application form). Last reviewed 2026-07.
How short-term rentals are regulated in New York
- New York has no single statewide short-term-rental ban. Towns, villages, and cities set their own rules through local ordinances and zoning, so rules can differ sharply between neighboring municipalities in the same county.
- Short stays in New York are generally subject to state and local sales tax, and many counties add a local occupancy (hotel/motel) tax, often collected by the booking platform on the host's behalf.
- Common local controls include permits or registration, primary-residence requirements, and zoning limits on which districts allow short-term use. In New York, a town and a village inside it can each have their own rule.
- Rules change. An ordinance can be added or amended at any time. Always confirm the current rule with the municipality before listing.
Chester (Town) short-term-rental FAQ
Can I run a short-term rental (Airbnb) in Chester (Town), NY?
The Town of Chester allows whole-home short-term rentals (stays under 30 days), but only in the SR-1, SR-2, LB-SL, and AR-3 residential zones and only with Building Department registration and a permit that must be renewed, with an inspection, every year. You also need at least $1,000,000 in liability insurance, written HOA consent where applicable, and you must notify the town 24 hours to 30 days before each rental stay. Non-owner-occupied single-family homes qualify; two-family homes must be owner-occupied to operate.
Do I need a permit or registration to run an STR in Chester (Town)?
STRs are permitted only in the SR-1, SR-2, LB-SL, and AR-3 residential zones; STRs already operating in other zones at adoption could continue only if they registered with the Building Department within 30 days (§ 98-29.1-5(A), (B)).
What taxes apply to a short-term rental in Chester (Town), New York?
Short-term stays in New York are generally subject to state and local sales tax, and many counties add a local occupancy (hotel) tax, often collected for you by the booking platform. A tax professional can confirm what applies to your property.
Can Palisade Stays manage a short-term rental in Chester (Town)?
Palisade Stays launches and runs short-term rentals for owners end to end. Where a short-term rental works in Chester (Town), we can handle setup, listing, guest operations, and turnovers. Start with a quick property-fit assessment.
Thinking about a short-term rental in Chester (Town)?
Palisade Stays launches and runs short-term rentals for owners end to end. Tell us about your property and we'll see if it's a fit.
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