Colonie, NY Short-Term Rentals: Permit Requirements (2026)

Colonie's municipal code is hosted on eCode360 at ecode360.com/CO0290, and as of 2026 the Town has not enacted a chapter dedicated to short-term rentals. Hosts of Airbnb, VRBO, and similar listings instead navigate three overlapping frameworks. First, Colonie's Zoning Chapter classifies dwellings by single-family, two-family, and multi-family use; transient or tourist lodging is a separate use category, and renting an entire single-family dwelling for periods under 30 days has been treated by some Capital Region zoning boards as a use that requires a special-use permit or zoning interpretation. Second, the New York Multiple Dwelling Law (MDL) does not apply to Colonie — the MDL is limited to cities with populations of 325,000 or more and to certain incorporated villages that have opted in, so the NYC-style 30-day minimum-rental rule does not preempt Colonie hosts. Third, New York has not enacted a statewide STR preemption statute (unlike Florida or Arizona), which leaves Colonie free to add a registration scheme by local law. Operators should verify the dwelling's zoning district, register for the Albany County hotel occupancy tax under NY Tax Law §1202-g, and confirm the property is not in a deed-restricted subdivision or homeowner's association that bars rentals under 30 days.