Executive Overview: Are Short-Term Rentals Allowed in Lititz, PA?

YES - Short-term rentals are explicitly allowed in Lititz, PA, but only under specific regulatory conditions. The Borough of Lititz has enacted comprehensive regulations governing short-term rentals through Ordinance amendments to Chapter 122 (Zoning). STRs are permitted as special exception uses in multiple zoning districts, provided operators meet strict owner-occupancy, licensing, and operational requirements.

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How to Start a Short-Term Rental Business in Lititz

Step 1: Zoning Compliance Verification

Before purchasing or converting any property for STR use, verify that your property is located in a zoning district that permits short-term rentals as special exception uses:

Permitted Zoning Districts:

• R-S Residential District (Section 206)
• R-1 Residential District (Section 207)
• R-2 Residential District (Section 208)
• R-A Residential District (Section 209)
• Office and Professional District (Section 210)
• Commercial District (Section 211)
• Lititz Run Revitalization District (Section 219)

Proceed only if your property is in one of these approved districts.

Step 2: Property Acquisition and Preparation

• Acquire property in permitted zoning district
• Ensure property can accommodate required off-street parking (1 space per STR unit or 1 space per 2 guests, whichever is greater)
• Prepare property to meet all safety requirements

Step 3: Owner-Occupancy Compliance

CRITICAL REQUIREMENT: You must occupy the property as your primary residence for at least nine months of the year. The borough requires owners to provide a form detailing periods when the STR will be rented without owner occupancy.

Step 4: Licensing and Registration Process

1. Apply for Residential Rental License with the Borough (Chapter 94 Borough Code)
2. Include license number in all STR listings
3. Register with Lancaster County for county-level requirements
4. Designate emergency contact (owner as primary, alternative local contact required)

Step 5: Ongoing Compliance

• Maintain current licensing and registration
• File occupancy tax returns
• Respond to borough inspections
• Maintain property standards

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Required Documents, Permits, Licenses, and Guidelines

Borough-Level Requirements

1. Residential Rental License

• Authority: Chapter 94 of Borough Code
• Requirement: Mandatory before listing property for rent
• Display: License number must be included in all STR listings
• Contact: Borough Code Enforcement Office

2. Emergency Contact Designation

• Primary Contact: Property owner
• Alternative Contact: Local contact required when owner not present
• Written Notice: Required to be filed with Borough
• Penalty: Failure to provide alternative contact results in license loss

3. Borough Inspection Requirements

• Initial Inspection: Required before license issuance
• Ongoing Inspections: Borough conducts systematic inspections
• Compliance: Must meet Pennsylvania Uniform Construction Code and Property Maintenance Code

County and State Requirements

4. Occupancy Tax Compliance

• State Tax: Pennsylvania Hotel Occupancy Tax (6%)
• County Tax: Lancaster County Occupancy Tax (2%)
• Annual Certification: Must provide written evidence of tax payments by September 30th annually
• Penalty: Failure to provide evidence results in license loss

5. Lancaster County Registration

• Requirement: Annual registration with Lancaster County Commissioner's Office
• Purpose: County-level oversight and tax collection

Documentation Requirements

6. Required Documentation

• Proof of property ownership
• Current residential rental license
• Emergency contact information
• Occupancy tax payment evidence
• Insurance documentation
• Safety equipment compliance records

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Specific Regulations for Short-Term Rentals

Definitions and Key Terms

Short-Term Rental: An owner-occupied dwelling or accessory unit that provides rooms or the entirety of the unit for transient residence to individuals unrelated to the owners of the dwelling unit.

Transient Residence: Any dwelling unit or part thereof which is rented or leased for a period of less than 30 days.

Owner-Occupancy Requirements

Tenure Requirement: All short-term rentals must be on properties occupied by the owner for not less than nine months of the year.

Documentation: Owners must provide the Borough with a form detailing when the STR will be rented without the owner occupying the property.

Parking Requirements

Minimum Standards: One off-street parking space shall be provided per Short-Term Rental Unit or every two guests, whichever is greater.

Additional Requirement: These spaces are in addition to those required for the property owner if guests will be occupying the property concurrently with the owner.

Siting Restrictions

Residential Districts: New short-term rentals must be sited at least 1,000 feet from existing Bed and Breakfast Inns and existing registered Short-Term Rentals.

All Other Districts: New Short-Term Rentals must be sited at least 500 feet from existing Bed & Breakfasts or Short-term Rentals.

Occupancy and Tax Requirements

Tax Obligations:

• Pennsylvania Hotel Occupancy Tax: 6% of gross rental receipts
• Lancaster County Occupancy Tax: 2% of gross rental receipts
• Annual Certification Deadline: September 30th each year

Safety and Maintenance Standards

Properties must comply with:

• Pennsylvania Uniform Construction Code
• Lititz Borough Property Maintenance Code
• Fire safety regulations
• Smoke detector and carbon monoxide detector requirements
• Emergency exit information posting

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Contact Information

Lititz Borough Office

• Phone: (717) 626-2044
• Fax: (717) 626-1329
• Address: 7 South Broad Street, Lititz, PA 17543
• Website: www.lititzborough.org

Code Enforcement/Zoning Officer

• Contact: Lori McEntarfer
• Phone: (717) 626-2044
• Email: lmcentarfer@lititzborough.org

Lancaster County Commissioner 's Office

• Phone: (717) 299-8000
• Purpose: STR Registration and County Tax Information
• Website: www.lancastercountypa.gov

Pennsylvania Department of Revenue

• Phone: (717) 787-8201
• Purpose: Hotel Occupancy Tax Information
• Website: www.revenue.pa.gov

Lancaster County Planning Commission

• Phone: (717) 299-8333
• Purpose: Zoning and Development Questions

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Enforcement and Penalties

License Suspension and Revocation

Immediate Actions: Loss of rental license for:

• Failure to provide alternative local emergency contact
• Failure to provide occupancy tax payment evidence by September 30th
• Operating without proper residential rental license

Compliance Monitoring

The Borough employs systematic enforcement through:

• Complaint-Based Enforcement: Response to neighbor and community complaints
• License Reviews: Annual renewal verification
• Systematic Inspections: Regular inspection cycles

Common Violations

• Operating without proper licensing
• Tax collection or remittance failures
• Occupancy limit violations
• Property maintenance deficiencies
• Guest conduct issues
• Inadequate safety equipment

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Source Pages and Official Documents

Primary Regulatory Documents

1. Lititz Borough Short-Term Rental Amendment Ordinance

   • Source: www.lititzborough.org/sites/g/files/vyhlif801/f/news/short-term_rental_amendment.pdf
   • Content: Complete regulatory framework for STRs in Lititz

2. Lititz Borough Zoning Ordinance (June 29, 2021)

   • Source: www.lititzborough.org/sites/g/files/vyhlif801/f/uploads/zo_codified_version_6.29.2021.pdf
   • Content: Section 430 contains complete STR regulations
   • Key Sections:
     • Section 105 (Definitions)
     • Section 206-211, 219 (Zoning Districts allowing STRs)
     • Section 430 (Short-Term Rental regulations)

Additional Resources

3. The Offer Sheet Legal Guide (Supplementary Information)
   • Source: local.theoffersheet.com/legal/lititz-pa/
   • Note: This source provides additional context but should be verified against official borough documents

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Critical Compliance Checklist for STR Operators

Before Operating:

• [ ] Verify property is in permitted zoning district
• [ ] Confirm owner-occupancy compliance (9+ months annually)
• [ ] Secure residential rental license
• [ ] Designate emergency contacts
• [ ] Ensure adequate parking (1 space/unit or 1 space/2 guests)
• [ ] Complete required inspections
• [ ] Register with Lancaster County

Ongoing Operations:

• [ ] Include license number in all listings
• [ ] File occupancy taxes (state and county)
• [ ] Maintain property standards
• [ ] Respond to guest concerns promptly
• [ ] Keep emergency contact information current
• [ ] Submit annual tax payment evidence by September 30th

Annual Renewals:

• [ ] Renew borough rental license
• [ ] Renew county registration
• [ ] Provide occupancy tax payment evidence
• [ ] Update emergency contact information if changed

Remember: Compliance with these regulations is mandatory for legal STR operation in Lititz. Regular monitoring of regulatory updates is essential as municipalities frequently adjust STR policies.