From Boom to Balance: How Ulster County Can Lead on STR Regulations. An Opinion Piece by Andrew Chafatelli, CEO of Rocking Horse Ranch Resort

Highland, NY – Short-term rentals (STRs) offer income opportunities and unique travel experiences, but they also drive up housing costs, create an uneven playing field for traditional hospitality businesses, and reduce long-term rental availability. Ulster County has declared a housing crisis, making it urgent to address these challenges. Implementing fair regulations will benefit all stakeholders, not just hotels and motels, but also residents seeking affordable housing and businesses that depend on a stable workforce.

Kingston previously had 9% of its housing stock tied up in short-term stays, prompting a cap limiting full-time permits to 1% of total housing units. A similar county-wide cap could help preserve long-term housing. Meanwhile, hotel closures, such as The Nevele and Pine Ridge Dude Ranch, have led to lost jobs and increased reliance on unregulated STRs, further straining the market.

The 2023 Ulster County Rental Housing Survey reports a 3.1% vacancy rate, well below the 5% threshold for a healthy market. Governor Hochul’s statewide housing initiatives aim to build new housing stock, but construction takes years. In contrast, short-term rental regulations can provide immediate relief.

Potential Approaches for Ulster County:

●     County-Wide Permitting and Regulation (Monterey County, CA) – Implement significantly higher permit fees to fund enforcement and emergency services, while ensuring that revenues collected are shared with the municipality where the STR is located and requiring valid license numbers on all listings.

●     Align Property Taxes with Rental Income (Aspen, CO) – Reassess STRs as commercial businesses based on rental income.

●     Enforce Business Licensing and Insurance (San Antonio, TX) – Require rental owners to obtain business licenses and carry liability insurance.

●     Strengthen Compliance Monitoring (Saratoga Springs, NY) – Establish enforcement teams to conduct inspections and respond to complaints. Penalties for unpermitted postings should be high.

●     Encourage Long-Term Rentals (Portland, OR) – Offer incentives for property owners to prioritize long-term housing over short-term stays.

This is not a call to ban short-term or vacation rentals but to ensure they follow the same rules as hotels and motels. My family stays at STRs and hotels when traveling and enjoys the unique experiences of both, but fairness in regulation is essential. When compliance costs align, many units will naturally return to the long-term rental market. Traditional hospitality businesses have long operated under strict regulations, and STRs should be held to similar standards.

Taking proactive steps now will support our local workforce, preserve long-term housing, and sustain our region’s hospitality industry well into the future. At Rocking Horse Ranch, we dedicate all 18 of our residential units to affordable housing for team members, choosing workforce stability over STRs. As we look to the continued development of our properties, we remain committed to strengthening public-private partnerships and ensuring our growth benefits the entire region.

The opinions expressed in this article are those of the writer; they do not necessarily reflect the opinions of Ulster Strong.