Sell the house, or rent it out?

Rental rules on the South Fork are set town by town and village by village, and they set the minimum lease term, which decides whether short summer stays are possible at all. Confirm the current code for the exact parcel before you count on any rent:

• East Hampton Town (Montauk, Amagansett, Springs, Wainscott and town-administered East Hampton): Town Code Chapter 199, Rental Registry. The house must be registered and hold a registry number before anyone other than the owner or immediate family occupies it for rent (§199-1-2); a seasonal rental is registered with its tenant and term (§199-1-3A). Registration runs two years (§199-1-3H), ends on a sale (§199-1-3D), and the number must appear in every ad (§199-1-2E). A first offense carries a fine of $3,000 to $15,000 (§199-1-9). Condominiums and co-ops are outside the registry since L.L. No. 16-2024 (June 20, 2024). Code as published through June 2, 2026.
• Southampton Town (Bridgehampton, Water Mill, Hampton Bays, Noyac, North Sea and the other hamlets): Town Code Chapter 270, Rental Properties. A two-year rental permit, issued to the owner, is required before renting, and no rent may be collected without it (§270-3, §270-4A, §270-13). Rentals of 14 days or less are prohibited (§270-1, §270-9C), so the shortest lawful term is 15 days. Condominiums and co-ops are covered. The permit number must appear in every ad (§270-9K, L.L. No. 19-2023). Code as published through October 13, 2026.
• Southampton Village: Village Code Chapter 89, rewritten August 14, 2025 (L.L. No. 7-2025). No more than 120 rental days a calendar year; no seasonal rental under 14 consecutive days, except a one-week rental twice a year (§89-3E, §89-4B, C). Registering is what allows collecting the season’s rent up front (§89-1). Code as published through July 9, 2026.
• East Hampton Village: its registry form (May 8, 2023) requires registration for rentals under 120 days, bars rentals under two weeks, and allows at most two such short rentals a calendar year.
• Sag Harbor Village: Village Code Chapter 215 (L.L. No. 12-2023, effective January 1, 2024). A permit and seasonal registration are required before renting; a seasonal rental runs at least 30 consecutive days, with two-week rentals allowed twice a year, and no more than 120 days a year (§215-1, §215-2, §215-3C). No permit for a non-owner-occupied rental of 14 days or less (§215-2D, L.L. No. 8-2024). Code as published through July 14, 2026.
• Sagaponack, Westhampton Beach, Quogue and the other villages have their own codes; check the one that covers the parcel.

More in Hamptons short-term rental rules by town and village. Private association, condominium and mortgage documents can restrict a lease further.

• Fewer than 15 days rented in the year: the rent is not federally taxable and no rental expenses are deducted (IRC §280A(g)).
• Your own use above the greater of 14 days or 10% of the days rented makes the house a residence for tax: rental deductions are limited to the rental income (IRC §280A(c)(5), (d)(1)).
• Shared costs (tax, insurance, interest, upkeep, depreciation) are split by rental days over days used (IRC §280A(e)).
• New York taxes rent from a New York house whether or not you live in the state.
• Stays of fewer than 30 days carry Suffolk County’s 5.5% occupancy tax, private houses included, effective June 1, 2023 (Suffolk County Code Ch. 523, Art. II): register with the County Comptroller within ten days of the first rental and remit quarterly. It is charged to the tenant on top of the rent, so the calculator leaves it out; enter rent net of it. Other sales-tax obligations depend on the arrangement; confirm with your accountant.