Southampton Short-Term Rental Regulations

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Permit & Licensing

Rental Permit (Town Code Chapter 270, Rental Properties)

This permit type does not require primary residence.

Application Process

An application for a rental permit must be filed with the Town's enforcement authority before the rental term commences; the enforcement authority reviews the application and conducts an on-site safety inspection (or accepts a licensed architect/engineer certification in lieu of inspection) before issuing a permit valid for two years.

Tax Obligations

Combined rate: 14.25% of gross rental income.

Collection: The operator/host must collect the occupancy tax directly from occupants at the time of rental and register for a Suffolk County Certificate of Authority; separately, the NYS sales tax on short-term rental occupancy is collected and remitted by the operator or, where used, the booking service (e.g., Airbnb/Vrbo) as the registered sales tax vendor.

Filing: Quarterly for the Suffolk County Hotel/Motel Occupancy Tax, due by the 20th of March, June, September, and December

Rental Limits

Southampton does not impose an annual cap on the number of nights you can rent.

Occupancy & Density Limits

Maximum occupancy is determined by bedroom floor area: 1 occupant per bedroom of at least 70 but less than 120 sq ft; 2 occupants per bedroom of at least 120 but less than 250 sq ft; required area increases for larger groups, capped at 5 occupants per bedroom.

Zoning & Restrictions

Rentals of 14 days or less are defined as “transient” and are not permitted outside the incorporated villages (the minimum length of stay under the Southampton Town Code is currently 14 days). Chapter 270’s rental-permit requirement applies to all rental properties in the unincorporated area of the Town regardless of the zoning district’s use regulations; the incorporated villages within the Town (e.g., Village of Southampton) are separately governed and excluded from this chapter.

Insurance & Safety

Insurance

Southampton does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Rental properties must have smoke detectors in every bedroom and in the common area of each floor; carbon monoxide detectors on each habitable floor within 15 feet of bedrooms; GFI outlets around water sources; no exposed/spliced wiring; unobstructed, labeled electrical panels; egress windows for below-grade bedrooms; and, where a pool is present, self-closing/self-latching gates, audible pool door alarms, and compliant 48-inch enclosures.

Penalties for Non-Compliance

A first-offense violation of Chapter 270 generally (e.g., operating a rental property without a valid permit) is punishable by a fine of not less than $3,000 nor more than $15,000 and/or imprisonment not to exceed six months; such violations are deemed misdemeanors.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Southampton:

1. Meet safety requirements. Rental properties must have smoke detectors in every bedroom and in the common area of each floor; carbon monoxide detectors on each habitable floor within 15 feet of bedrooms; GFI outlets around water sources; no exposed/spliced wiring; unobstructed, labeled electrical panels; egress windows for below-grade bedrooms; and, where a pool is present, self-closing/self-latching gates, audible pool door alarms, and compliant 48-inch enclosures.
2. Apply for Rental Permit (Town Code Chapter 270, Rental Properties). Submit application + $400 nonrefundable biennial (2-year) Standard fee; reduced fees ($175-$250) apply for architect/engineer certification or qualifying tax-exemption categories; $800 if the property is already found in violation of Chapter 270 fee.
3. Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
4. Collect and remit taxes. 14.25% on all bookings.
5. Renew every 2 years. $400 nonrefundable biennial (2-year) Standard fee, same schedule as the initial application renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Southampton?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Southampton requires a Rental Permit (Town Code Chapter 270, Rental Properties).

Does Southampton require a short-term rental to be your primary residence?

No. Southampton allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Southampton?

Southampton does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Southampton?

Short-term rental stays in Southampton are subject to a combined 14.25% in lodging taxes. This combines 8.75% New York State & Local Sales Tax (Suffolk County combined jurisdiction rate) + 5.5% Suffolk County Hotel/Motel Occupancy Tax. The host is responsible for collecting and remitting them.