Pennsylvania Short-Term Rental Rights, HOAs, and Township Rules: A Conversation with Eric Smith

Short-term rental owners and buyers in Pennsylvania often face a mix of practical, legal, and local-government questions. What do the community documents say? What does the township ordinance allow? Can a prior rental use continue after rules change? How much should buyers worry about rumors, restrictions, or shifting local attitudes?

At the Poconos STR conference, Eric Smith of Timoney Knox discussed these issues in a short interview focused on Pennsylvania property rights, private community associations, municipal rules, non-conforming uses, and what buyers should understand before purchasing or operating a short-term rental property.

Interview Transcript

Interviewer: We are here at the Poconos’s STR conference and I’m joined with Eric Smith, a leading attorney who focuses on uh property rights and helps uh both individuals and companies with uh maintaining those rights especially against townships and uh different HOAs and kind of what’s been your experience?

Interviewer: what should uh potential home buyers kind of look for and you know is all the gossip they hear something that uh is really relevant?

Eric Smith: Well, first I I’d say don’t believe the gossip. Um second, uh the primary thing that every uh homeowner should think about, every operator is to review the documents in the associations, review the township zoning ordinance before before they even, you know, sign the agreement of sale. They need to know, you know, they’re going to need to know what their rights are, but also what their obligations are. Um, and my experience is that that owner operators and just, you know, even just mom and pop uh STR operators, everybody wants to comply, but they don’t always have read everything they need to read to fully understand what that compliance really means.

Interviewer: So, you help people to push back when sometimes things go wrong. Um, you know, describe a little bit of Sure. what that entails and Sure. And also, you know, we’re in Pennsylvania, which might be a little different than other states.

Eric Smith: Sure. Here in Pennsylvania, the the two main areas that I see are one is an overreaching um associations and the second is uh townships that have changed the rules of the game uh after somebody’s been operating. So, each of those um each of those has its own uh analysis and each of them has their own procedure. uh the the uh the procedure with uh the the associations is all is all through their declaration and that’s the first place where I look is to see what does the declaration really provide and then with the municipalities of course the first thing that I would look at is the ordinance what did the old ordinance say uh what did the what did the new ordinance say and what was the impetus for the change

Interviewer: we hear a lot about grandfathering and uh a house that may have been operated for a and then they come and claim that they can grandfather and a town says, “Well, no, you can’t grandfather because the rules changed.” What’s kind of the truth here?

Eric Smith: Sure. Well, so the one uh the the one point is uh grandfathering as a as a sort of a phrase is is a little bit of urban legend. It’s it’s really non-conforming use. And there is a whole body of law on non-conforming uses. And it’s it’s actually somewhat complicated, but for the most part, if someone was lawfully operating, whatever it is, and the municipality changes the ordinance, in most circumstances, and there was no abandonment of the prior use and no expansion of the prior use, in most circumstances, they should have a pretty good case for a non-conforming continuing operation. There’s also some related doctrines. one called vested rights where someone actually invests into something when the township knows or doesn’t speak or affirmatively says yeah you can do that but then changes their mind and also something called uh like a variance by a stoppple which is a very similar you know similar process legal terms legal terms um but it is I think you keyed on something where you have to continue that use correct

Interviewer: that abandonment I guess is what some people get frustrated with I operated I got shut town and now I’ve got this period of time that happens from when the township says cease and desist and you make your argument and come back and say I’m within my rights. If you go off and do something in that window, do you lose your rights to grandfather?

Eric Smith: Well, I’m sure a township would say you do. But abandonment is actually there’s actually some elements to abandonment and it takes more than 3 months, 4 months, something like that. something then something in like four months time that might be abandonment is if you were a short-term rental or were a residence and you changed it to a doctor’s office that might be but if you go from uh short-term rental renting every weekend to short-term rental complying and renting every 10 days and then you challenge it within a the time frame you might be okay

Interviewer: right we hear this with the concept of mid-term rentals right where if I rent 30 days or more I’m completely exempt is Is that your understanding too?

Eric Smith: Uh if it depends what the ordinance says. Some of the ordinances do say that 30 days 30 days is is 30 days or more is uh is a permitted short-term rental and that’s kind of become the standard.

Interviewer: I’ve seen that I’ve seen that more and more less than 30 I think.

Eric Smith: Correct.

Interviewer: And then what we hear also the 30 days or more then the worry of course is they get tenant rights.

Eric Smith: Correct. then you’ve have to start looking at a lease a rental. So, lack of a rental agreement means they have tenant rights. Uh if you don’t have a uh lease agreement uh and you’re occupying a structure, first of all, I would never do that for anybody out there. Never do that. Um because you got to be able to get the person out whether they’re in there for a weekend or or six months. You’ve got to be able to get the person out. So, um I I would say that that everybody should operate with a with a in a written agreement.

Interviewer: So, that’s a rental agreement in Airbnb as much as correct traditional standard lease.

Eric Smith: Correct. Right. May have less terms, but yes.

Interviewer: So we uh one of the things I was just in a session we talked about um your winds at ruffle grouse and the hideout and that you idea that there’s the use of the home was as intended right the things that were going on in the home the rental home correct were sleeping eating watching TV relaxing correct right and that’s why the home was built so nothing in a short-term rental is that crazy a use that should be nonconforming in that sense. And so almost to that point, how vulnerable do you think the uh slice of life is really is?

Eric Smith: Well, let me just say one thing. I did not handle Rough Grouse, but I rely on Rough Grouse all the time. I handle the hideout matter, but I I’d like to give you credit.

Interviewer: Thank you. I appreciate that.

Eric Smith: Um, but I do the Rough Grouse case and the hideout case together are very powerful. Very powerful. They close both doors and they explain very clearly real estate restrictions and how they’re different from the slice of life which is purely a zoning case. And slice of life really has no application thus far under existing Pennsylvania case law. No application to to private community law. No application at all. It has full application in the zoning context. Um but uh a community cannot just sit back and say, “Oh, slice of life says that we can restrict restrict or ban short-term rentals.” That that is that is just not the case. Okay. Yeah.

Interviewer: Great. Any more thoughts of uh what we should buyers be looking for and should we be scared of the Poconos?

Eric Smith: And definitely don’t be scared of the Poconos’s. This is a it’s a great opportunity. is a great place to come and uh invest. It’s a great place to work and play. And uh I just think read the documents and be knowledgeable. That’s the the number one thing I think I would say.

Interviewer: So it says Pennsylvania’s best property rights attorney. Thanks.

Eric Smith: Thank you. Thanks.

Final Thoughts

For buyers, owners, and operators, the practical theme of the interview is clear: do not rely on rumor alone. Before purchasing or operating a short-term rental, review the association documents, declaration, township zoning ordinance, and any applicable rental rules. When rules change or a community association attempts to restrict rentals, the answer may depend on the specific language of the governing documents, the ordinance history, and whether the owner’s prior use was lawful and continuous.

For Pennsylvania short-term rental owners, especially in the Poconos, the interview also reinforces the importance of acting early, documenting rights and obligations, and getting legal guidance before assumptions become costly disputes.

About The Author(s):

Eric B. Smith

Mr. Smith, a partner of Timoney Knox, LLP, serves as Chair of the Firm’s Litigation Group and has been consistently recognized by Super Lawyers and Best Attorneys since 2005.  In 2017 Mr. Smith served as the President of the Montgomery Bar Association.  His commercial and real estate litigation practice spans across the Commonwealth of Pennsylvania.

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