New York City recently amended a law that could impact how short term rental operators host. This amendment mandates that all STR platforms acquire hosts’ consent before sharing their hosting and listing date with the City. If hosts don’t want to share their hosting and listing data, they can always host for 30 nights or more, not subject to data-sharing. The following is a complete guideline for New York City’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 Regulations in New York City – Summary
- New York City prohibits short term rental hosts from renting out their entire home, even if one owns or lives in the building.
- When renting a private room in an apartment or home as a short term rental, the host must be present during the stay.
- A host may have up to two paying guests in their home. Moreover, within each household, guests must have unrestricted access to all rooms and exits.
- Internal doors are not permitted to have key locks that allow guests to leave their room locked while they are out. In general, all guests must maintain a shared household. Therefore, everyone in the family and any visitors must have access to all areas of the housing unit. Internal doors with such key locks make it difficult to flee in an emergency.
- Property owners are responsible for ensuring that they keep their premises in a maintained, safe, and code-compliant manner at all times. The City will issue a violation for any illegal short term rentals on their property, even if tenants living in the premises conduct it.
- Under the New York State Law, hosts cannot advertise an apartment in a Class A multiple dwelling for rent for less than 30 days. The Class A multiple dwelling is a building with three or more permanent residential units.
Short Term Rentals in Multiple Dwelling Buildings
According to a new change to New York City’s Multiple Dwelling Law, hosts cannot advertise short term rentals in “Class A” Multiple Dwelling buildings. So operating and hosting an STR is highly unlikely if one lives in a building with three or more permanent residential units. Hosts may search up their building’s Certificate of Occupancy on the New York City Building’s Website to see if they can operate a short term residential rental in their building.
Short Term Rentals in Rent-Stabilized Buildings
To prevent a disproportionate income generation, rent-stabilized buildings have legal restrictions on what tenants can charge on online hosting platforms. Even though a host can rent a private room in a rent-stabilized building as an STR, they can’t charge more than the room’s proportional share of the rent. One can compute the proportionate share of rent by dividing the apartment or dwelling’s total rent by the number of persons who live in it.
Data-Sharing Requirements in New York City
The City requires the home-sharing platforms of New York City to submit data about hosts and listings. Hosts will be asked for permission to share this information with the City. As of January 3, 2021, the updated law requires platforms to share the following information:
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Information about the Host & Co-Host(s):
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- Name
- Physical Address (Street number, street name, apartment or unit number, county or borough, zip code)
- Phone number
- Email ID
- Profile ID number
- Profile URL
- The amount the platform sent to the host
- Host’s account name and Account number
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Information about 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 will not be able to host stays if they don’t agree to share their data with the City. Therefore, they will be limited to hosting guests for stays of 30 nights or more.
There are several advantages to hosting 30 nights or more. Besides exempting hosts from data sharing restrictions, it can help hosts increase earning potential and reduce guest turnover. Hosting for 30 nights or longer can also help hosts reach out to new types of guests.
Listing Data Sharing Exemptions
Some types of listings are exempt, and their data will not be shared with the City. Types of exempt listings include:
- Class B listings, like licensed hotels included on the City’s exemption list.
- Hosts who rent for four nights or less every quarter.
- Private rooms with a capacity of two or fewer guests.
- Shared rooms with a capacity of two or fewer guests.
Even though their data will not be shared, hosts of exempt listings may still consent to data sharing if the status or type of their listing changes.
Certificate of Occupancy
In New York City, all residential buildings must have a Certificate of Occupancy. This certificate verifies the building’s legal use and occupancy. The New York City Department of Buildings has a website where property owners may look up their Certificate of Occupancy. Firstly, property owners must submit an application. Then the City must inspect the unit to ensure that it complies with the occupancy requirements for such use. One example is compliance with the New York City fire and building codes, which impose more strict safety requirements on buildings used for short term rentals. Violations may result in sanctions for the building owner.
Business License Certificate
To operate a business in New York City, hosts who engage in short term rentals will have to obtain a Business License or permit. Visit New York City’s new Business Portal for more 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 permitted. Any violations of rent control or rent stabilization rules could result in fines or even eviction. Even if short term rentals are permitted, the amount that hosts who rent out rental-controlled units may charge is limited.
Zoning Laws
The New York City Zoning Code defines the zones where transient rental buildings are permitted. Moreover, Zoning Law violations might result in hefty fines. The Zoning Code’s second chapter offers definitions of key terminologies, such as what constitutes a “hotel.”
Taxes
Multiple taxes may apply to transient occupancy in New York City, subject to specific exemptions. State sales and use tax and city hotel room occupancy tax are examples of taxes that may apply to a listing. For additional information about taxes, short term rental operators can go to the New York State Department of Taxation’s website.
Other Short Term Rental Regulations
As a responsible host, you must comprehend and abide by other vacation 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 New York City’s official website or contact us.