Brooklyn, a borough of New York City, has firm short term rental laws to ensure that hosts share their homes responsibly while also ensuring housing affordability in the City. Brooklyn defines short term rentals (STRs) as rentals that take place for less than 30 consecutive days. The following is a complete guideline for Brooklyn’s short term rental regulations so that anyone can be a responsible host when using platforms like Airbnb, VRBO, and other similar services. This rundown should give you a good start in understanding your local laws.
Short Term Rental Laws
To operate an STR in Brooklyn, hosts must adhere to the following short term rental laws:
- Hosts are prohibited from renting out their entire home as an STR, even if one owns or lives in the building.
- When renting a private room in an apartment or home as an STR, the host must be present during the stay.
- Hosts may have up to two paying guests in their homes. Moreover, guests may have unrestricted access to all rooms and exits inside each household.
- Internal doors may not have key locks that allow guests to leave their rooms locked while they are away. All guests must maintain a shared household. This means that all family members, along with visitors, must have access to all areas of the residence. Internal doors with key locks make it difficult to depart in an emergency. Therefore, this could result in the issuance of a temporary vacate order.
- All property owners are responsible for keeping their properties in a well-kept, safe, and code-compliant condition at all times. Any unauthorized STRs on their property will result in a violation.
Short Term Rentals in Multiple Dwelling Buildings
A Class A multiple dwelling is a building with three or more permanent residential units. According to a new modification to New York City’s Multiple Dwelling Law, short term rentals in Brooklyn cannot be advertised in “Class A” Multiple Dwelling structures. On the New York City Buildings website, hosts can look up their building’s Certificate of Occupancy to check whether they can operate an STR in their property.
Short Term Rentals in Rent Stabilized Buildings
Rent-stabilized buildings have legislative restrictions on what tenants can charge on hosting sites like Airbnb and HomeAway to prevent a disproportionate income generation. For example, even if a host can rent a private room in a rent-stabilized building for a short period of time, they can’t charge more than the proportional share of the rent for the space. One can calculate the proportionate share of rent by dividing the total rent of the apartment or dwelling by the number of people who live there.
Data-Sharing Requirements in Brooklyn
Brooklyn’s home-sharing websites are required to provide information about hosts and listings. The City will ask hosts for permission to share this information with them. The new short term rental regulations require platforms to share the following information as of January 3, 2021:
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Details of the Host and Co-Host(s):
- Name
- Physical Address (Street number, street name, apartment or unit number, county or borough, zip code)
- Phone number
- Email ID
- Profile ID number
- The amount the platform sent to the hose
- Host’s account name and Account number
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Details of the Listing(s):
- Physical address (street name, street number, apartment or unit number, county or borough, zip code)
- Name of Listing
- Listing’s ID number
- Listing’s URL
- Type of dwelling
- The total number of nights booked (for each listing).
Hosting for 30 Nights or More
STR operators in Brooklyn who refuse to share their data with the City will not be able to host transient stays. So that means they will only be able to accommodate guests for durations of 30 nights or more.
There are various benefits to hosting for 30 or more nights. It can help hosts boost their earning potential, as well as reduce guest turnover by exempting them from data sharing restrictions. Hosting for 30 nights or longer can also help homeowners connect with new types of guests, such as professionals working remotely.
Exemptions from Listing Data Sharing
Certain types of listings are exempt, and their information will not be shared with the City. The following are examples of exempt listings:
- Class B listings, such as licensed hotels included in the City’s list of exemptions.
- Hosts who rent for four nights or less every quarter.
- Private rooms with a maximum capacity of two people.
- Shared rooms with a capacity of two or fewer guests.
Exempt listing hosts may still consent to data sharing if the status or type of their listing changes, even if their data will not be shared.
Certificate of Occupancy
All residential buildings in Brooklyn must have a Certificate of Occupancy, which certifies the building’s legal use and occupancy. Property owners can search up their Certificate of Occupancy on the New York City Department of Building’s website. Property owners must fill out an application, and the City must inspect the unit to determine that it meets the occupancy limits for this type of use. One example is compliance with Brooklyn’s fire and building codes, which impose more stringent safety requirements on properties used for STRs. Building owners may face penalties if they violate the rules.
Business License Certificate
Short term rental hosts must obtain a Business License or permit in order to operate a business in Brooklyn. You can also visit New York City’s new Business Portal for further information.
Rent Control Laws
Any potential host who lives in rent-controlled or rent-stabilized housing should first check to see if short term rentals of the residence are allowed. The City may impose fines or eviction if hosts violate rent control or rent stabilization restrictions. Even though short term rentals are allowed, the amount that hosts who rent out rented controlled units are allowed to charge is limited.
Zoning Laws
The New York City Zoning Code defines the zones where transient rental structures are authorized. Violations of the Zoning Law could result in substantial fines. The second chapter of the Zoning Code contains definitions of key terms, such as what constitutes a “hotel.”
Taxes
Multiple taxes, subject to specific exemptions, may apply to transient occupancy in Brooklyn. Taxes that may apply to a listing include state sales and use tax and city hotel room occupancy tax. Short term rental businesses should visit the New York State Department of Taxation’s website for more information on taxes.
Other Short Term Rental Regulations
As a responsible host, you must comprehend and abide by other vacation rental rules and regulations that bind you. These include leases, community rules, HOA rules, or other guidelines set up by tenant associations. Feel free to reach out to your landlord, housing authority, or community council to find out more. To get more information about other short term rental regulations, you can also visit Airbnb’s NYC guidance page or contact us.