Note: This guide reflects the Village of Greenwood Lake regulations (Orange County). The Village of Greenwood Lake explicitly allows short‑term rentals (commonly called STRs or “Airbnb”), but only with a valid village permit and ongoing compliance.

Overview: Are short‑term rentals allowed in Greenwood, NY?

• Village of Greenwood Lake: Yes—short‑term rentals are explicitly allowed, but only with a Village‑issued permit and ongoing compliance with local rules (e.g., annual inspection, liability insurance, safety features, septic maintenance).
• Town of Greenwood (outside the Village limits): No specific local STR law is presented in the source materials. In the absence of a town‑specific code, STR operations would default to New York State rules (including the 2025 State STR Registry and lodging/tax obligations).

Bottom line for investors: If you are inside the Village of Greenwood Lake, you can operate an STR—but only with a Village permit and compliance. If you are in the Town of Greenwood (outside the Village), you must rely on state‑level rules unless the town adopts its own STR law later.

How to start an STR business in the Village of Greenwood Lake

1. Confirm your property’s readiness

• Ensure you hold a valid Certificate of Occupancy (CO).
• Clear any outstanding code violations before applying.
• Confirm your septic system meets current code, has been pumped and inspected within 12 months prior to application, and will be pumped annually before each permit renewal.
• Install working illuminated exit signs above at least the main entrance and the main exit.
• Secure liability insurance with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate.

2. Ownership and applicant eligibility

• The applicant must be an “actual person” with an ownership interest in the property (individual owner, not a corporation alone).
• Corporate owners should add an individual with ownership as the permit applicant.

3. Prepare documents and submit the Village STR permit application

• Completed permit application (Village STR permit application page provides the official starting point).
• Proof of ownership (deed or equivalent).
• Certificate of Occupancy.
• Insurance declaration confirming required liability coverage.
• Proof of septic compliance: pumping receipt and inspection report (must be within 12 months of application).
• Emergency contact information for the property.
• Any additional documentation requested by the Building/Code Enforcement Office.

4. Inspections and approvals

• The Village Code Enforcement Officer conducts annual safety/fire inspections. Plan for scheduling and remediation if items are cited.
• The Building Inspector may designate required parking spaces; plan accordingly on the site plan.
• Allow up to 30 days for processing; ensure you obtain final permit approval before listing the property.

5. Renewals and timeline

• Permits must be renewed every 12 months.
• Renewals must be approved by May 31 to operate after June 1.
• Maintain compliance throughout the term (inspections, septic pumping, insurance, exit signage, garbage rules).

Required documents, permits, licenses, and guidelines

Village of Greenwood Lake—short‑term rental requirements:

• Village STR Registration/Permit (issued annually; renewal required every 12 months).
• Annual STR Registration fee (see fee schedule below).
• Annual Rental Inspection fee (per unit).
• Annual Fire Inspection fee.
• Valid Certificate of Occupancy (CO).
• Liability insurance: minimum $1,000,000 per occurrence / $2,000,000 aggregate.
• Septic compliance: pumped and inspected within 12 months prior to application; pumped annually before renewal.
• Exit signage: working illuminated signs above main entrance and main exit.
• Parking: designated by the Building Inspector on a case‑by‑case basis.
• Garbage: not permitted curbside before 5:00 PM the day before scheduled pickup.
• Permit status: a privilege, not an entitlement; subject to review/suspension by the Village Board.

State and county tax compliance (for any NY STR under 30 days):

• Register for New York State sales tax (as required for transient rentals).
• Register with the county for lodging taxes (varies by county; in New York State, counties typically impose a 3–4% occupancy tax on stays under 90 days—confirm current Orange County rate).
• For properties inside the Village: coordinate with the Village Building/Code Enforcement Office for local approvals before collecting/state filings.
• Important: Non‑hosted STR advertising prohibition—New York State prohibits advertising non‑hosted short‑term rentals in buildings with three or more dwelling units. Confirm building type and zoning before listing.

Orange County—additional notes:

• County lodging tax and related compliance likely apply; confirm with the County Treasurer/Finance Office.
• No separate county STR permitting is presented in the source materials for the Village of Greenwood Lake.

New York State (2025 statewide STR registry):

• All STR hosts must register with the state (via the county) to list on platforms such as Airbnb and VRBO.
• Platforms must verify a host’s registry number before allowing a listing.
• Hosts and platforms must collect and remit applicable sales and lodging taxes and report rental data to local governments.
• Use the county STR registry portal once it is operational to obtain and maintain your registry number.

Regulations and fees (Village of Greenwood Lake, County, State)

Local (Village of Greenwood Lake)

• Allowed uses and permits:
  • Short‑term residential rentals (typically <30 days) are allowed in the Village only with a valid STR permit and annual renewal.
  • Host eligibility: an “actual person” with an ownership interest must be the applicant; the Village treats permits as a privilege.
• Safety and code:
  • Annual inspections by the Code Enforcement Officer.
  • Fire safety measures including illuminated exit signage at primary entry/exit.
  • Septic compliance and annual pumping prior to renewal.
• Parking:
  • Parking spaces designated by the Building Inspector on a case‑by‑case basis; ensure signage and access plan supports safe guest circulation.
• Garbage:
  • Curbside refuse prohibited until 5:00 PM the day before scheduled pickup.
• Enforcement:
  • Violations may lead to fines, permit review, or suspension by the Village Board.

County (Orange County)

• Lodging tax compliance applies to STRs; obtain the current rate and payment procedures from the County Treasurer/Finance Office.
• No separate county STR permit identified in the provided sources.

State (New York State)

• 2025 STR registry requirement (effective 2025): hosts must register through the county to legally list and operate.
• Platform verification: Airbnb/VRBO must check registry numbers before listing.
• Taxes and reporting: hosts/platforms must collect applicable sales and lodging taxes and report data to local governments.
• Multi‑unit building advertising: non‑hosted STR advertising is prohibited in buildings with three or more dwelling units; ensure compliance with this state law.
• Other general requirements:
  • Safety and building code compliance consistent with NYS Uniform Fire Prevention and Building Code.
  • Municipal permits (where required) for fire safety, life safety, and habitability.

Village of Greenwood Lake fee schedule (effective February 19, 2025; Resolution #69 of 2024/2025)

• Long‑Term Rental Registration: $100
• Short‑Term Rental Registration: $100
• Annual Rental Inspection: $50 per unit
• Annual Fire Inspection: $100
• Fine for unregistered long‑term rental: $500
• Fine for unregistered short‑term rental: $1,000

Contact information (local authority in charge of STRs)

• Village of Greenwood Lake — Building Department / Code Enforcement Office
  • Address: Village Hall, 18 Church Street, P.O. Box 7, Greenwood Lake, NY 10925
  • Phone: 845‑477‑9215
  • Village website: villageofgreenwoodlake.gov/permits-required-for-short-term-rental-air-bb/
• Village Police (non‑emergency inquiries relating to safety)
  • Phone: 845‑477‑9211
• Additional Village Departments (planning/zoning, public works) are listed on the Village website if further permitting or site plan review is required.

For lodging and sales taxes:

• New York State: Register through the NYS Department of Taxation and Finance (sales tax/STR compliance).
• Orange County: Confirm lodging tax registration and remittance procedures with the County Treasurer/Finance Office (specific contacts not provided in the sources).

Links to source pages

• Village of Greenwood Lake — Permits Required for Short Term Rental | Air B&B: villageofgreenwoodlake.gov/permits-required-for-short-term-rental-air-bb/

• Alluvion Vacations — STR Regulations (regional overview): www.alluvionvacations.com/str-regulations

• GoSummer — Greenwood Lake, New York STR overview: www.gosummer.com/vacation-rental-management/greenwood-lake-new-york

Practical guidance for investors:

• Operate only within the Village after obtaining your permit; Village law is the binding local regime for STRs.
• Build your licensing timeline around the May 31 renewal deadline and 30‑day processing window; avoid mid‑season disruptions.
• Treat insurance, septic pumping, and exit signage as core operational costs—failure in any of these areas triggers citations and can jeopardize your permit.
• Prepare for annual inspections and maintain logs (insurance renewals, septic service records) to streamline renewals.
• For properties outside the Village (Town of Greenwood), assume state rules apply until a town STR law is adopted; confirm lodging tax obligations and the 2025 registry compliance through the county and NYS.