Riverhead seeks to ban short-term rental ads, triple fines

Riverhead will consider beefed-up short-term rental regulations Tuesday that would ban advertising of rentals under 30 days, triple maximum fines and allow enforcement based on listing language alone.

The proposed revisions — to be discussed at a public hearing scheduled for Tuesday, Nov. 18, during the 6 p.m. Town Board meeting — include expanding the rules for rental permits, prohibiting advertisements of rentals under the 30-day term and bumping up penalties and fines for violators.

The Riverhead Town Board first enacted the law banning rentals of fewer than 30 days in 2013 after neighbors of such rentals complained they were turning into “party houses” and were operating as commercial establishments in residential areas. The town was among the first Long Island municipalities to implement a formal rental permit system that also requires a town inspection.

“The Town Board finds that rental of residential units for periods of less than 30 days undermines residential zoning, disproportionately draws upon Town resources and services, and/or disrupts the peaceful, quiet enjoyment of property by residents of the Town in a manner inconsistent with the Town Board’s obligation to protect and promote the health, safety and welfare of the Town’s residents,” the revised code states. 

In the updated code, town officials added that any property listed or advertised on a public rental platform with a minimum stay of less than 29 days would be presumed for transient rental purposes and in violation of town code. 

Language in the advertisement suggesting weekend availability or weekly rentals, per-night rather than monthly rental rates, and observations of groups occupying the premises on a rotating basis would also be seen as likely evidence of a transient rental. 

Any one or more of the criteria listed in the revised code would be sufficient for Riverhead Town to establish a “rebuttable presumption” that the property is in violation, regardless of whether the rental activity actually occurred. 

This rebuttal could be used as evidence in any enforcement proceeding, including prosecutions in town justice court, civil actions in Supreme Court or administrative appeals before the Zoning Board of Appeals. 

Advertisements for short-term rentals under 30 days in Riverhead would be illegal in the updated code, with each day of advertising for the rental unit constituting its own separate violation. All rental advertisements would be required to have a valid, town-issued rental permit number.

Any platforms that fail to remove a prohibited listing after receiving a formal written notice from Riverhead Town would face civil penalties. The increased fines for violators would be as follows: 

• First offense: Minimum fine of $3,000, maximum of $15,000, 15-day imprisonment, or both. 
• Second offense: If committed within 18 months of prior conviction, violators face a minimum $5,000 fine, maximum $20,000, 15-day imprisonment, or both. 
• Third offense: Those who commit a third or subsequent offense within five years of a prior conviction will be punished with a minimum $10,000 fine, maximum $30,000 fine, 15-day imprisonment, or both. 

In addition to criminal penalties, the town may pursue civil action and fines up to $5,000 per violation per day, as well as injunctive relief. 

A town code enforcement officer can also suspend, revoke or deny a rental permit upon finding a violation in the transient rental code.