Short-Term Rental Investor’s Guide to New Kensington, Pennsylvania

1) Allowed and Prohibited: Direct Answer

• Are short-term rentals (STRs) allowed in New Kensington, PA?
  • Yes, STRs are allowed in Pennsylvania. State law does not prohibit renting private residences for fewer than 30 days. The term “short‑term rental” is defined under state tax law as occupancy for less than 30 days, and such rentals are generally considered transient lodging. However, municipal zoning controls where and how STRs may operate. This guide explains what you can do at the state level and how to ensure local compliance for New Kensington.

Note on local rules

• Based on the available state study, New Kensington (a third-class city) is listed among municipalities without a dedicated STR ordinance in 2024. This means STRs are likely governed by general zoning (e.g., hotel/rooming-house provisions), building and fire codes, and any broader rental-registration rules. You should still verify the current municipal code because ordinances can change.

2) How to Start a Short-Term Rental in New Kensington

Use this step-by-step sequence to set up an STR legally:

1. Verify zoning and land-use permissions

• Determine your zoning district and whether short-term lodging uses are permitted (e.g., as a hotel, rooming house, or a special/conditional use) or prohibited.
• In many PA municipalities, short‑term rentals that amount to purely transient commercial lodging are not permitted in residential zones unless explicitly authorized. Confirm New Kensington’s zoning classification for your property and the current status of STRs within it.

2. Confirm municipal licensing or registration requirements

• Some PA cities require an annual rental license or registration. New Kensington has not historically mandated a dedicated STR license, but it may require general rental-unit registration and inspections. Contact the city’s code/inspection department to confirm.

3. Register for state and local taxes

• Hotel Occupancy Tax (state): 6% is due on all rentals of fewer than 30 days (including via platforms). If you use a booking agent exclusively (e.g., a single platform that collects and remits for you), you generally need not register or collect directly. If you take payments yourself or use multiple agents, you must obtain a Sales, Use, and Hotel Occupancy Tax license from the PA Department of Revenue and collect/remit the tax yourself.
• Hotel Occupancy Tax (local): Westmoreland County is a Fourth‑Class County and levies a 5% county hotel tax under 16 Pa.C.S. § 17507. The total hotel occupancy tax in New Kensington is therefore 11% (6% state + 5% county).
• Registration path: Use the Pennsylvania Department of Revenue’s e-Tides system to register for the Sales, Use, and Hotel Occupancy Tax account if required, then file and remit monthly or quarterly.

4. Verify fire, safety, and building compliance

• Short‑term rentals are subject to lodging-establishment provisions (e.g., smoke/CO alarms, posted evacuation plans, safe egress, sanitary standards) as part of the transient lodging code. Confirm any city inspection requirements, occupancy limits, and local nuisance provisions.

5. Set up insurance and risk controls

• Maintain premises liability coverage appropriate for commercial lodging. Do not rely solely on platform-provided Host Liability; secure an independent policy or endorsement that covers guest injuries, property damage, and loss of income.

6. Income tax compliance

• STR income is taxable as business income under Pennsylvania Personal Income Tax (3.07%). Keep complete records, including gross receipts, platform fees, utilities, maintenance, depreciation, insurance, and marketing expenses.

7. File and remit hotel taxes; collect personal income tax

• If not exclusively using a booking agent, collect the 11% combined hotel occupancy tax (state + county) from guests and remit to the Department of Revenue according to filing cadence. Report net STR income on your PA personal income tax return.

3) Required Documents, Permits, Licenses, and Guidelines

At a minimum, investors in New Kensington should have:

• Hotel Occupancy Tax registration (if not exclusively using a booking agent)
  • Sales, Use, and Hotel Occupancy Tax license (PA Department of Revenue)
  • Filing obligations: Collect, report, and remit 6% state hotel tax; remittances to local authorities for county hotel tax (5%)
• Municipal compliance
  • Confirm any general rental registration, zoning permits, and inspection requirements with the City of New Kensington Code Enforcement
• Federal and state tax records
  • Federal Schedule E or Schedule C records for rental income/expenses
  • Pennsylvania personal income tax filings including STR net income
• Insurance and safety
  • Premises liability policy or STR-specific endorsement
  • Evidence of compliance with smoke and carbon monoxide alarms; posting of house rules; emergency contact signage

4) Statewide Regulations Applicable in New Kensington (and What to Verify Locally)

• Landlord and Tenant Act of 1951
  • Defines landlord‑tenant relationships; does not ban short‑term occupancy but sets baseline obligations (written leases advised; licenses and registrations required as applicable).
• Transient Lodging Provisions (Title 48)
  • Short‑term rentals of <30 days are treated as lodging establishments subject to health, safety, and record‑keeping requirements. You are responsible for guest safety, maintaining order, and retaining occupancy records.
• Taxes
  • State hotel occupancy tax: 6%; booking agents must collect and remit if acting as your exclusive booking intermediary.
  • County hotel occupancy tax: Westmoreland County, 5% (Fourth‑Class County under 16 Pa.C.S. § 17507). Total lodging tax in New Kensington: 11%.
  • Personal Income Tax: STR income taxed as business income (PA PIT 3.07%).
  • Booking Agent Rules: If you use multiple booking agents or handle payments directly, register for and collect the hotel occupancy tax yourself.
• Municipal Zoning Authority
  • STRs are heavily governed at the local level. If New Kensington’s zoning ordinance does not explicitly allow transient lodging in your district, it may be deemed a prohibited commercial use. Verify the municipal zoning code and any conditional‑use procedures.
• Planned Communities and HOAs
  • State law does not control STRs within HOAs/condos; covenants, declarations, and bylaws govern. If your property is in a planned community, review restrictions and ensure compliance to avoid covenant enforcement actions.

Key takeaways

• New Kensington is a third‑class city; the state report lists it without a dedicated STR ordinance as of 2024.
• Local rules can change quickly. Confirm zoning and any registration requirements with the city before listing.

5) Local Authority Contacts for New Kensington

For current zoning, licensing, and inspection requirements:

• City of New Kensington (Westmoreland County)
  • Phone: (724) 335-4000
  • Address: City Building, 707 Fifth Avenue, New Kensington, PA 15068
  • Official website: www.newkensingtoncity.us/ (verify any STR/licensing or code‑enforcement pages)

For state tax registration and lodging tax:

• Pennsylvania Department of Revenue
  • Phone: (717) 787-1064
  • Online portal for business tax accounts (e‑Tides): www.etides.state.pa.us/Login/Login.aspx
  • Home‑sharing/STR tax guidance: www.pa.gov/agencies/revenue/resources/tax-types-and-information/sales-use-and-hotel-occupancy-tax/home-sharing.html

For county lodging tax specifics:

• Westmoreland County (Fourth‑Class County)
  • As a Fourth‑Class County, Westmoreland is authorized to levy a 5% county hotel tax under 16 Pa.C.S. § 17507. For county tax collection details and remittance, check with the Westmoreland County Tax Collection Committee or the County Controller/Treasurer office.

Note: Municipal contact details for short‑term rental oversight may evolve; always verify the latest codes, permits, and contacts.

6) Source Links

State guidance and key statutes cited in this guide:

• Short‑Term Rental Industry in Pennsylvania — Joint State Government Commission Report (March 2025): jsg.legis.state.pa.us/resources/documents/ftp/publications/2025-03-17%20Short-term%20Rental%20Web%203.17.25.pdf
• PA Department of Revenue: Home‑sharing/Third‑party Broker Rentals and Hotel Occupancy Tax: www.pa.gov/agencies/revenue/resources/tax-types-and-information/sales-use-and-hotel-occupancy-tax/home-sharing.html
• Pennsylvania Municipalities Planning Code (MPC) overview: Act of July 31, 1968 (P.L.805, No.247), as amended (53 P.S. § 10101 et seq.)
• County Hotel Room Rental Tax Statutory Authorities (examples referenced):
  • 16 Pa.C.S. § 17507 (Fourth‑Class County, 5% cap)
  • 16 Pa.C.S. § 17501–17505 (Third‑Class County provisions)
  • 16 Pa.C.S. § 17161 (Second‑Class County — Allegheny)
• Lodging Establishment Definition and Occupancy Thresholds (48 Pa.C.S. § 1311(g))

Practical reminders for New Kensington investors

• Confirm zoning permission before listing; do not assume STRs are permitted in a residential district without explicit authorization.
• If you accept payments directly or use multiple platforms, register for the PA Sales, Use, and Hotel Occupancy Tax license and collect the 11% combined tax.
• Maintain appropriate insurance and adhere to safety and nuisance standards.
• Monitor municipal code updates; STR rules change frequently and may add registration or inspection requirements.

This guide reflects Pennsylvania law as of March 2025 and the findings of the Joint State Government Commission study. Always verify current municipal and county requirements before investing or listing.