New York City Short Term Rental Regulation: A Guide For Airbnb Hosts

What are Short Term Rental (Airbnb, VRBO) Regulations in New York, New York?

As the popularity of short-term rental platforms like Airbnb and VRBO continues to grow, New York City has taken steps to regulate this industry and ensure it aligns with the city's goals of maintaining legal, safe, and sustainable housing options.

For those looking to start a short-term rental business in the Big Apple, the process begins with understanding and complying with the city's comprehensive regulations. Since September 2023, the Mayor's Office of Special Enforcement (OSE) has required all short-term rental hosts to register their properties and obtain a permit, regardless of which platform they use.

To register, hosts must provide a variety of documents, including proof of ownership or rental agreement, proof of residency (if they are not the owner), proof of liability insurance, and proof of business registration (if operating as a business). Additionally, hosts must supply details about their rental property, such as the address, number of bedrooms and bathrooms, and available amenities.

Alongside the registration process, New York City also imposes a lodging tax on short-term rentals, which is a percentage of the guest's stay that the host is responsible for collecting and remitting to the city. This tax is added to the overall cost of the rental, paid by the guest.

While New York City is not the only municipality in the state with short-term rental regulations, its approach has been particularly strict. The city has actively enforced these rules since their implementation, and hosts who fail to comply can face significant fines and penalties.

This regulatory environment has not gone unnoticed by the short-term rental community. Airbnb hosts in New York have expressed concerns on platforms like Reddit and Bigger Pockets, citing the perceived overly restrictive nature of the rules and the potential impact on the city's tourism industry.

Despite these challenges, starting a short-term rental business in New York City is still possible, but it requires careful navigation of the regulatory landscape. Hosts must be prepared to invest time and resources into understanding the city's requirements, completing the necessary registration and permitting processes, and ensuring ongoing compliance with all relevant rules and regulations.

Starting a Short Term Rental Business in New York

To start a short-term rental business in New York City, hosts must adhere to specific regulations outlined by the city. These regulations, as of September 2023, require hosts to register with the Mayor's Office of Special Enforcement (OSE) and obtain a permit to operate short-term rentals.

The registration process involves providing personal information on all individuals residing in the rental, submitting a diagram of the rental property, and demonstrating proof that the host resides at the listing. Additionally, hosts must comply with the city's zoning resolution, multiple dwelling law, housing maintenance code, and New York City construction codes related to short-term rentals.

Violations of these regulations can lead to fines and legal consequences. It's crucial for hosts to understand the demand for short-term rentals in different neighborhoods, consider factors like occupancy rates and average nightly rates, and ensure their property complies with local laws. By registering with the OSE and following the city's guidelines, hosts can legally operate a short-term rental business in New York City.

Short Term Rental Licensing Requirement in New York

As of September 2023, the city requires hosts to register with the OSE and obtain a permit to operate a short-term rental. This permit is required for all short-term rentals, including those offered through platforms like Airbnb and VRBO. The permit is valid for one year and must be renewed annually.

Required Documents for New York Short Term Rentals

To register a short-term rental property in New York City, hosts must provide a comprehensive set of documents that demonstrate compliance with the city's regulations. These documents are crucial for obtaining the necessary permit from the Mayor's Office of Special Enforcement (OSE) and ensuring legal operation of the short-term rental.

• Proof of Ownership or Rental Agreement Hosts must provide proof of ownership or a valid rental agreement for the property. This document serves as evidence that the host has the legal right to rent out the property for short-term stays.
• Proof of Residency If the host is not the owner of the property, they must provide proof of residency in the property. This document ensures that the host is a legitimate resident of the property and not just a temporary occupant.
• Proof of Liability Insurance Hosts must provide proof of liability insurance that covers guests and the property. This insurance protects both the host and the guest in case of accidents or damages during the rental period.
• Proof of Business Registration If the host is operating a business, they must provide proof of business registration. This document is required to ensure that the host is operating a legitimate business and not just renting out the property for personal gain.
• Property Information Hosts must provide detailed information about the rental property.

Other Documents

In addition to the above documents, hosts may also need to provide:

• Floor Plan: A diagram of the property's floor plan to ensure compliance with the city's zoning regulations.
• Certificate of Occupancy: A certificate from the New York City Department of Buildings (DOB) or the New York City Department of Housing Preservation and Development (HPD) confirming that the property is legally occupied.
• Fire Safety Certificate: A certificate from the New York City Fire Department (FDNY) confirming that the property meets fire safety standards.

Importance of Accurate Documentation

It is essential for hosts to provide accurate and complete documentation to avoid any issues with the registration process. Incomplete or inaccurate documentation can lead to delays or even denial of the permit application. Hosts should carefully review the city's regulations and ensure that they have all the necessary documents before submitting their application.

New York Short Term Rental Taxes

New York City imposes a lodging tax on short-term rentals, which is a percentage of the cost of your guest's stay that's added to the price on the bill. The guest pays the tax, but you're responsible for collecting it and remitting it to the city. 2

New York Wide Short Term Rental Rules

New York City is not the only city in New York State with short-term rental regulations. Other cities, such as Palm Springs, San Francisco, and Burlington, have also implemented regulations to govern short-term rentals. These regulations vary by city, but they often include requirements for registration, permits, and taxes. 1

Does New York Strictly Enforce STR Rules?

New York City has taken a firm stance on enforcing its short-term rental (STR) rules to regulate the growing market of Airbnb, VRBO, and other similar platforms. Since the regulations came into effect in September 2023, the city has demonstrated a commitment to ensuring compliance and maintaining the integrity of its housing market.

Stringent Enforcement Measures

The city's enforcement of STR rules is characterized by a proactive approach to monitoring and penalizing non-compliance. Hosts are required to register with the Mayor's Office of Special Enforcement (OSE) and obtain a permit to operate short-term rentals. Failure to adhere to these requirements can result in fines and penalties, emphasizing the city's commitment to upholding its regulations.

• Accountability of Booking Platforms In addition to holding individual hosts accountable, New York City has also placed responsibility on booking platforms themselves. Platforms that facilitate short-term rentals are expected to ensure that hosts are registered and compliant with city regulations. Failure to do so can lead to penalties, including fines for processing payments from unregistered hosts.
• Resilient Enforcement Amid Challenges Despite legal challenges and lawsuits from various stakeholders, New York City has remained steadfast in its enforcement efforts. The city has continued to implement and enforce its regulations, demonstrating a commitment to regulating the short-term rental market effectively.
• Impact on the Industry The strict enforcement of STR rules in New York City has had a significant impact on the industry. Hosts are compelled to comply with regulations to avoid penalties, leading to a more regulated and transparent short-term rental market in the city. This enforcement has also helped address concerns about the impact of short-term rentals on the availability of long-term housing options.

How to Start a Short Term Rental Business in New York

To start a short-term rental business in New York, follow these steps:

• Research the city's regulations and zoning laws to ensure that your rental property is eligible for short-term rentals.
• Register your rental property with the Mayor's Office of Special Enforcement (OSE).
• Obtain a permit to operate a short-term rental.
• Provide required documents, including proof of ownership or rental agreement, proof of residency, and proof of liability insurance.
• Collect and remit lodging taxes.
• Comply with all other city regulations, including those related to noise, safety, and fire safety.

Who to Contact in New York about Short Term Rental Regulations and Zoning?

For more information about short-term rental regulations and zoning in New York, contact the Mayor's Office of Special Enforcement (OSE) at (212) 639-9675 or ose@cityhall.nyc.gov.

To inquire about short-term rental regulations and zoning in New York City, individuals can contact the Mayor's Office of Special Enforcement (OSE) at (212) 639-9675 or via email at ose@cityhall.nyc.gov. The OSE is the primary authority responsible for overseeing and enforcing regulations related to short-term rentals in the city.

What do Airbnb Hosts in New York on Reddit and Bigger Pockets Think about Local Regulations?

Airbnb hosts in New York have expressed concerns about the city's new short-term rental regulations that went into effect in September 2023:3 The article states that Airbnb hosts have reported difficulties in complying with the new regulations, including the requirement to register their rentals and obtain a permit. They feel the regulations are "overly restrictive" and will hurt the tourism industry.1

The article also mentions that Airbnb sees the new rules as a "de facto ban" on its business in New York City. Hosts are fighting to try to change the law, arguing it will make the city "less accessible" for visitors.2 The article notes that the new rules, such as requiring hosts to live in the rental unit and not allowing locks on bedroom doors, will likely make short-term rentals "a lot less attractive" for many people coming to New York.

So in summary, Airbnb hosts on platforms like Reddit and Bigger Pockets have been very critical of New York City's strict new short-term rental regulations, seeing them as overly burdensome and potentially damaging to the city's tourism industry and their ability to earn income from home-sharing. They are actively trying to push back against the new rules.