Watertown, New York Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Watertown, NY?

YES – Short-term rentals are explicitly allowed in Watertown, New York. The City of Watertown Zoning Ordinance (February 2023) permits short-term rentals as a by-right use across multiple zoning districts, including Downtown (D), Urban Mixed Use (UMU), Neighborhood Mixed Use (NMU), Commercial Corridor (C), and Residential (R) zones. This represents a business-friendly regulatory environment for STR operators, as no special permits or extensive approval processes are typically required beyond standard compliance measures.

What do Airbnb hosts actually earn in Watertown?

Watertown hosts earn a median $20,410/year with $135 ADR and 62% occupancy.

Top performers pull in $31,638+ per year.

See the full Watertown market breakdown

How to Start a Short-Term Rental Business in Watertown

1. Zoning Compliance Verification

Confirm your property is located in an approved zoning district (Downtown, Urban Mixed Use, Neighborhood Mixed Use, Commercial Corridor, or Residential)
Review Section 310-66 of the Watertown Zoning Ordinance for specific short-term rental provisions
Ensure your property meets all dimensional requirements for your specific zoning district

2. Property Preparation

Ensure your property complies with all building and fire safety codes
Verify adequate parking arrangements (City standards apply)
Prepare guest rules and regulations addressing noise, occupancy limits, and property maintenance
Install appropriate safety measures (smoke detectors, carbon monoxide detectors, fire extinguishers)

3. Business Registration

Register your business with the City of Watertown
Obtain any required business licenses or certificates
Consider liability insurance (minimum $500,000 recommended based on NY State best practices)

4. Tax Registration and Compliance

Register for New York State sales tax if applicable
Comply with Lewis County bed tax requirements (5% tax on short-term rentals adopted in 2019)
File certificate of registration with Lewis County Treasurer as required

5. Platform Registration

List your property on platforms like Airbnb, VRBO, etc.
Ensure compliance with platform-specific requirements
Maintain accurate property information and availability

Required Documents, Permits, Licenses, and Guidelines

Zoning and Land Use

Zoning Compliance Verification: Confirm STR use is permitted in your district
Certificate of Occupancy: Ensure property meets habitability standards
Site Plan Review (if required for larger operations): Submit to Planning and Community Development Department

Business Registration

Business Registration Certificate with City of Watertown
Short-Term Rental Certificate (if specifically required by city code)
Sales Tax Registration with New York State Department of Taxation and Finance

County-Level Requirements

Lewis County Bed Tax Registration: Certificate of registration with County Treasurer
5% Bed Tax Remittance: Monthly filing and payment system

Insurance and Safety

Liability Insurance: Minimum $500,000 coverage recommended
Property Insurance: Comprehensive coverage for rental property
Safety Compliance: Fire safety equipment, emergency procedures

Operational Guidelines

Guest Rules and Regulations: Written policies covering quiet hours, occupancy limits, property use
Emergency Contact Information: Available to guests and local authorities
Local Contact Person: 24/7 availability requirement

Specific Regulations for Short-Term Rentals

City of Watertown Regulations (Zoning Ordinance)

Permitted Zoning Districts:

Downtown (D)
Urban Mixed Use (UMU)
Neighborhood Mixed Use (NMU)
Commercial Corridor (C)
Residential (R)

General Requirements:

STRs must comply with all general zoning provisions
Property maintenance standards apply
Parking requirements must be met
Noise ordinances and nuisance regulations apply
Property must meet building and fire safety codes

Supplemental Regulations:

Additional requirements may apply per Section 310-66
Local contact person availability during rentals
Guest limitation policies
Property rules and regulations posting requirements

Lewis County Regulations

Bed Tax:

5% transient occupancy tax on all short-term rentals
Adopted in 2019 for Lewis County
Requires certificate of registration with County Treasurer
Monthly remittance requirements

Enforcement:

County-level compliance monitoring
Coordination with city code enforcement

New York State Regulations

General Framework:

Municipalities have authority under NYS Town Law Article 16, Article 10, and Article 9
Zoning, planning, police powers, and license authorities available
Regulations must be specific, unambiguous, and serve legitimate government purpose

Case Law Considerations:

Municipalities must be explicit about STR regulations
Ambiguity generally construed in favor of property owners
Reasonable regulations are generally enforceable
Property rights balanced against community interests

Insurance Requirements:

Platform-provided insurance (e.g., Airbnb provides up to $1,000,000 coverage)
Separate liability insurance strongly recommended

Contact Information for Local Authority

City of Watertown - Planning and Community Development Department

Address: City Hall, 245 Washington Street, Watertown, NY 13601
Phone: (315) 785-7740
Website: www.watertown-ny.gov
Responsibilities: Zoning compliance, planning review, site plan approval

City of Watertown - Code Enforcement Bureau

Phone: (315) 785-7740
Responsibilities: Building permits, occupancy certificates, enforcement

Lewis County Treasurer's Office

Address: Lewis County Courthouse, 7660 N. State Street, Lowville, NY 13367
Phone: (315) 376-5333
Website: www.lewiscountyny.gov
Responsibilities: Bed tax registration, collection, compliance

New York State Department of State

Website: dos.ny.gov
Phone: (518) 473-2492
Responsibilities: Municipal law guidance, technical assistance

NYS Tug Hill Commission

Address: Dulles State Office Building, 317 Washington Street, Watertown, NY 13601
Phone: (315) 785-2380
Website: www.tughill.org
Responsibilities: Regional planning assistance, technical guidance

Source Pages

Lewis County Short-Term Rental Regulations (PDF): lewiscountyny.gov/wp-content/uploads/2023/08/Short-Term-Rentals-FINAL-7-2022.pdf
City of Watertown Zoning Ordinance (February 2023): www.watertown-ny.gov/media/PlanningZoning/Zoning%20Ordinance/2023%20Feb%20FINAL_Full%20Ordinance_small.pdf

Disclaimer: This guide provides general information based on available regulations as of the provided sources. Investors should verify current requirements with local authorities before proceeding with any STR investment, as regulations may be updated or amended. The regulatory environment for short-term rentals continues to evolve, and municipal policies may change.

Next step

Found a property in Watertown?

Paste any address and get estimated revenue, cash-on-cash return, and comparable STR performance in under 5 minutes. 3 free analyses per day.

Ask the AI Advisor about Watertown

Watertown is a city of roughly 25,000 residents in Jefferson County, in the far northern reaches of New York State, just south of the Canadian border and the St. Lawrence River. With a working-class, blue-collar character shaped in large part by its proximity to a major Army installation, it functions as the commercial and retail hub for a wide swath of rural upstate New York. The city sits approximately 70 miles north of Syracuse along Interstate 81, and is best known as the southern gateway to the Thousand Islands and as a staging point for travel to Lake Ontario and the Canadian border crossings at Alexandria Bay and Gananoque.

The Thousand Islands archipelago straddles the US-Canada border along the St. Lawrence River, about 30 to 40 minutes north of Watertown via I-81 and Route 12. This scenic stretch of more than 1,800 islands draws visitors for boating, fishing, and sightseeing cruises, and is anchored by attractions such as Boldt Castle on Heart Island and the Thousand Islands Bridge. It is one of the most-visited summer destinations in upstate New York, and Watertown is the natural last major stop for travelers heading in from the south.

About 15 miles west of the city, on the shore of Lake Ontario, lies Sackets Harbor, a small village with deep War of 1812 history. It was the site of a major U.S. military buildup and several engagements along the Canadian frontier, and today visitors can tour the Sackets Harbor Battlefield State Historic Site, stroll the harborfront, and browse local shops and restaurants. The drive takes roughly 20 to 25 minutes along NY-3.

Thompson Park, on the eastern edge of Watertown, is a large wooded green space with walking trails, a small zoo, an ice rink in the colder months, and elevated views back over the city. As one of the few sizable urban parks in the region, it draws both locals and visitors looking for an easy outdoor outing without leaving town. It anchors Watertown's limited but pleasant in-city recreational scene.

Fort Drum, home of the U.S. Army's 10th Mountain Division, lies just a few miles east of the city. While the post itself is generally closed to tourists, its steady population of soldiers, families, and visiting relatives sustains demand for lodging, dining, and short-term rentals throughout the year — a factor that distinguishes Watertown from purely seasonal tourism towns further north.

Taken together, Watertown offers an unusual mix of year-round military-driven demand, a strong summer pull from the Thousand Islands and Lake Ontario, and winter interest from snowmobilers and ice anglers. For short-term rental operators, that blend of recurring and seasonal demand makes the city a quietly versatile base in a part of New York that many visitors otherwise pass straight through.