Is Catskills, New York Good for Airbnb Investment?

To start an Airbnb in the Catskills, New York, begin by researching local zoning laws and regulations as each town (like Woodstock, Hunter, or Tannersville) has different short term rental requirements, with some requiring special use permits or limiting rental days to under 30 per year.

Launch checklist

• Contact your specific town clerk's office to understand permit requirements, which typically cost $100 to 500 annually, and ensure your property meets fire safety codes including smoke detectors, carbon monoxide detectors, and proper egress windows.
• Find a suitable property by searching platforms like LoopNet or working with local realtors familiar with investment properties, focusing on areas near ski resorts, hiking trails, or popular towns.
• Furnish the space with durable, mountain appropriate furniture including comfortable beds, a fully equipped kitchen, outdoor furniture for decks, and seasonal items like firewood storage and snow removal equipment, budgeting $15,000 to 30,000 for a complete setup.
• List your property on Airbnb, VRBO, and local platforms like Catskills vacation rental sites, with professional photography highlighting mountain views, outdoor spaces, and proximity to attractions like Hunter Mountain or Kaaterskill Falls.
• Manage the property by establishing relationships with local cleaning services (typically $80 to 150 per turnover), maintenance contractors familiar with mountain properties.

To identify profitable short term rental properties in the Catskills, New York, focus on locations within 2 to 3 hours of NYC metro area, particularly near popular destinations like Hunter Mountain, Windham, or Woodstock, with proximity to hiking trails, lakes, or ski resorts being crucial for year round appeal.

What to prioritize

• Target properties with 3 to 4 bedrooms, outdoor spaces like decks or fire pits, modern amenities including WiFi and updated kitchens, and unique features such as mountain views, hot tubs, or rustic charm that photograph well for listings.
• Conduct pricing analysis using AirDNA and Mashvisor to identify markets with average daily rates of $200 to 400 and occupancy rates above 60%.
• Research competition by studying similar properties within 5 mile radius on Airbnb and VRBO, noting their pricing, amenities, and booking calendars to identify gaps in the market or opportunities for differentiation.
• Utilize tools like Rabbu, AllTheRooms, and local STR management companies such as Catskills Vacation Rentals for market insights, while consulting Sullivan County and Ulster County tourism boards for visitor data.

To obtain an Airbnb/STR permit in the Catskills region of New York, you must first determine which specific town or county your property is located in, as regulations vary by municipality common areas include Greene County towns like Hunter, Windham, or Tannersville.

Documents and approvals

• Generally, you'll need to apply through your local town clerk's office or building department, submitting a short term rental application along with required documents including proof of property ownership, certificate of occupancy, floor plans, septic system inspection (if applicable).
• Most municipalities require a public hearing notice and may charge application fees ranging from $200 to $500, with annual renewal fees of $100 to $300.
• The approval timeline typically takes 30 to 90 days depending on the complexity and local review process.
• Specific Catskills requirements often include maximum occupancy limits based on bedrooms and septic capacity, parking requirements (usually 2 spaces minimum), noise ordinance compliance, waste management plans.
• You may also need to register with New York State for tax collection purposes and obtain a Certificate of Authority for sales tax if your rental period is less than 30 days.

Short term rentals (STRs) in the Catskills region of New York operate under a complex legal framework that varies significantly by municipality, with most areas allowing STRs but with increasing restrictions implemented since 2019 to 2023. The legal status depends on specific towns and counties within the Catskills, such as Greene, Delaware, Sullivan, and Ulster counties, where many municipalities have enacted local ordinances requiring registration, permits, and compliance with zoning laws.

Core operating requirements

• Common restrictions include limits on the number of rental days per year (typically 120 to 180 days), occupancy caps, parking requirements, and noise ordinances.
• Prohibited areas often include certain residential zones in towns like Kingston and Saugerties, and recent legal changes have seen municipalities implementing registration systems, increased fines for violations, and enhanced enforcement mechanisms.

The best Airbnb investment areas in the Catskills, New York include Woodstock, renowned for its music festival legacy and year round arts scene that attracts cultural tourists and weekend visitors from NYC; Hunter, a prime ski destination with Hunter Mountain drawing winter sports enthusiasts and summer festival goers; Phoenicia.

Airbnb properties in the Catskills region of New York are subject to multiple layers of lodging taxes including New York State sales tax at 4% plus local sales taxes that vary by county (typically 3 to 4%), resulting in combined rates of 7 to 8% on short term rental stays.

Taxes and filing responsibilities

• Delaware County imposes an additional 2% occupancy tax, while Greene County charges a 3% hotel/motel tax, and Sullivan County levies a 3% hotel room occupancy tax, bringing total tax rates to approximately 9 to 11% depending on the specific municipality.
• Ulster County charges a 2% hotel unit fee plus standard sales tax.
• These taxes are collected at the time of booking through Airbnb's automated tax collection system for most jurisdictions, though some local occupancy taxes may require direct remittance by hosts to county tax departments on a quarterly basis.
• Hosts must register with the New York State Department of Taxation and Finance and obtain a Certificate of Authority to collect sales tax, with returns typically filed quarterly.
• Exemptions generally apply to stays of 30 days or longer, which are considered long term rentals in preference to transient accommodations, and some counties may exempt stays by permanent residents or government employees on official business.

To start an Airbnb in the Catskills, New York, expect total costs around $450,000 to $550,000.

Cost breakdown

• Property purchase represents the largest expense at approximately $350,000 to $400,000 for a median 2 to 3 bedroom home suitable for short term rentals.
• Furnishing costs typically range $15,000 to $25,000 for quality furniture, bedding, kitchenware, and decor to create an attractive guest experience.
• Initial setup including professional photography, listing creation, and marketing materials costs around $2,000 to $3,000.
• Permits and fees vary by municipality but generally include short term rental permits ($200 to $500), business licenses ($100 to $300), and potential zoning compliance costs ($500 to $1,500).
• Insurance for short term rentals runs $2,000 to $4,000 annually, significantly higher than standard homeowner's insurance.
• Utilities including electricity, water, heating, internet, and cable average $300 to $500 monthly or $1,800 to $3,000 for six months.
• First six months operating costs encompass cleaning services ($150 to $250 per turnover), maintenance and repairs ($2,000 to $4,000), property management software ($50 to $100 monthly), and marketing expenses ($500 to $1,000), totaling approximately $8,000 to $15,000.
• Additional considerations include potential property improvements for guest safety and comfort, emergency fund reserves, and seasonal variations in utility costs due to heating requirements in the mountainous region.

Airbnb properties in the Catskills, New York typically generate annual revenues ranging from $25,000 to $65,000 for well positioned properties, with average daily rates between $150 to 300 depending on location and amenities.

Profitability indicators

• Operating expenses generally consume 40 to 60% of gross revenue, including cleaning fees ($75 to 150 per turnover), property management (15 to 25% of revenue), utilities ($200 to 400 monthly), insurance ($1,500 to 3,000 annually).
• Properties near popular destinations like Hunter Mountain or Woodstock command premium rates, with some luxury cabins achieving 70 to 80% occupancy rates and net profit margins of 25 to 35%.
• Success factors include proximity to outdoor activities, unique architectural features like restored barns or modern A frames, professional photography, and responsive guest communication.
• Properties within 2 hours of New York City perform best, particularly those offering amenities like hot tubs, fire pits, or scenic views, with investors like those operating through companies such as RedAwning or AvantStay reporting ROI of 8 to 15% in prime locations.

Airbnb investments in the Catskills, New York typically generate annual ROI of 12 to 18% with cash on cash returns ranging from 8 to 15% depending on property type and location within the region.

Return planning figures

• Properties closer to popular ski resorts like Hunter Mountain or Windham tend to achieve higher returns of 15 to 18% annually, while more remote locations average 10 to 14%.
• Initial profitability usually occurs within 18 to 24 months for well positioned properties, with seasonal rental rates averaging $200 to 400 per night during peak summer and winter months.
• The market has shown consistent growth since 2019, with companies like Vacasa and RedAwning reporting strong booking rates of 65 to 75% occupancy for professionally managed properties.
• Cash on cash returns are optimized when investors purchase properties in the $300,000 to 500,000 range with 20 to 25% down payments, allowing for positive cash flow within the first year of operation in most Catskills submarkets including Woodstock, Phoenicia.

STRSearch leads the national market for Airbnb investment property analysis and market research in the Catskills region.

Companies and resources

• Local real estate agents specializing in short term rental investments include Catskill Mountain Realty, Century 21 Catskill Mountains, and Coldwell Banker Village Green Realty.
• National services include Mashvisor (founded 2014), which provides Airbnb analytics for Catskills markets, AirDNA offering rental performance data since 2015, and RedAwning's investment platform launched in 2009.
• Specialized investment companies like Awning (2020), Vacasa's investment division (2009), and AvantStay's property acquisition team (2017) actively source profitable Airbnb properties in Sullivan, Delaware, and Greene counties.
• Local property management companies such as Catskills Vacation Rentals, Mountain Modern Management, and Hudson Valley Short Term Rentals also assist investors in identifying and acquiring properties.
• Additional services include BiggerPockets' STR analysis tools, Rentometer's market research capabilities, and local investment groups like Hudson Valley Real Estate Investors Association founded in 2018.