Short-Term Rentals in Colonie, NY

Colonie maintains 85 local ordinances across all categories, and 2 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where Colonie falls on the strict-to-permissive spectrum compared to other cities.

Primary-Residence-Only Rule

Colonie only allows a short-term rental at a property that is the owner's primary residence. Investment properties, second homes, and non-owner-occupied houses cannot legally operate as short-term rentals under Town Code § 190-20F(1), regardless of whether a Building Department permit is later obtained.

Key details: Eligibility: Rental must be owner's primary residence. Governing law: § 190-20F(1), added 2021. Adopted: L.L. No. 3-2021, September 9, 2021. Enforced by: Town of Colonie Building Department. Penalty: Up to $1,000 per day, repeat violations.

Renting out a property that is not the owner's primary residence as a short-term rental violates § 190-20F(1) and is enforced under § 190-129. A first violation carries a fine up to $350 or up to six months in jail; repeat violations rise to $350 to $700, then $700 to $1,000, with each day of continued unauthorized rental counted separately, and the Town may also sue to enjoin the use.

This is not one of those rules that cities tend to ignore. Colonie actively enforces its primary-residence-only rule requirements.

Short-Term Rental Permits

The Town of Colonie caps short-term rentals at 50 active permits townwide. Owners must obtain an annual permit from the Building Department, pass an inspection, and renew every year to keep operating, with only one permit issued per owner per parcel.

Key details: Permit cap: 50 short-term rental permits townwide. Issuing agency: Town of Colonie Building Department. Permit term: One year, renewable annually. Per-owner limit: One permit per owner per parcel. Adopted: L.L. No. 3-2021, September 9, 2021.

Operating a short-term rental without a current Building Department permit, or continuing after a permit lapses, is a violation of Chapter 190 enforced under § 190-129. A first offense draws a fine up to $350 or up to six months' imprisonment; a second violation runs $350 to $700; a third or later violation runs $700 to $1,000, with each day of continued operation a separate violation and possible permit revocation.

This is one of the stricter rules in Colonie's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

The Bottom Line

Colonie is tougher than many cities when it comes to short-term rentals. Out of the 2 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Colonie, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

This guide is based on Colonie's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.