Founder-led stewardship for Montgomery rental owners

Go, with conditions. The rule that decides it: Eligibility is limited to single-family dwellings in the town's residential zoning districts; short-term rental of two- or three-family dwellings, multiple dwellings, or homes with accessory dwelling units is not permitted (draft Section 186-5.A.1).

Permit required: no property may be used as a short-term rental (a single-family dwelling rented for 30 days or less) without a revocable short-term rental permit from the Town Building Department; permits run 2 years, are non-transferable on sale, and renewal requires re-inspection (draft Sections 186-1, 186-3, 186-10). Application requires owner signatures, an inspection authorization, a certified floor plan, a 24-hour local contact, proof of property and STR-rated liability insurance, a water quality test (Total Coliform and E. coli), and septic pumping within the last 4 years; a nonrefundable fee is set by Town Board resolution (draft Sections 186-4, 186-5.B, 186-5.A.16-17). Adjacent property owners are notified of each application by first-class mail, and the Building Department has 30 days to consider comments and inspect before a permit issues with Town Board approval (draft Section 186-6). Violations are punishable by fines up to $350 for a first offense, escalating to $1,000 to $1,500 for a third offense within 5 years, plus possible permit suspension or revocation; a revoked owner is barred from a new permit on the property for 2 years (draft Sections 186-9, 186-11). The governing text is Town of Montgomery Code Chapter 186, Short-Term Rentals (enacted by Local Law No. 1 of 2026; introduced as Introductory Local Law No. 7 of 2025).

Occupancy caps: 2 people per bedroom and never more than 10 people per unit including permanent residents; homes on septic are capped at 2 people per bedroom, a maximum of 4 bedrooms, and 8 people total (draft Section 186-5.A.12-13).

Montgomery (Town)'s ordinance does not publish a fee schedule in the sources we hold. We confirm current fees with the municipality before you budget for them.

Pre-existing short-term rentals had to apply within 60 days of the law's effective date and prove at least 1 calendar year of prior STR operation; lapsed use for 1 year or more forfeits the grandfathering (draft Section 186-8).

Workable. Confirm the current permit position with the municipality before you commit, then treat compliance as the first operating task rather than an afterthought. Most of the risk in Montgomery (Town) is administrative, not structural.