Bridgehampton, New York Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Bridgehampton

Bridgehampton, located in the Hamptons area of Long Island, is a popular summer vacation destination. However, before listing your home on sites like Airbnb or VRBO, it's important to understand the local regulations around short-term rentals.

The Town of Southampton, which includes Bridgehampton, has specific requirements for rental permits. An application for a rental permit must be filed before the rental term begins. It must include information on the owners, proof of their legal residence, a copy of the property deed, the number of intended occupants, and the rental period. The application must be signed, notarized, and submitted by the owners or property manager.

There is a minimum rental period of 2 weeks (14 days) for all rentals in Southampton. Rentals shorter than this are considered "transient" and are not allowed under the town code. Permits are valid for 2 years.

The application fees range from $150-300 depending on the type of property and owner. An inspection may be required, with an additional $200 fee, if done by a licensed architect or engineer rather than the town. Expedited permits are available for $750.

Failure to obtain a permit before advertising or renting can result in violations and fines. The ability to rent may also be suspended for 2 years.

In 2022, the town issued 57 tickets to one property owner in Montauk who had allegedly rented their property over 50 times in a 9-month period without proper permits, with potential fines over $200,000. This demonstrates the town's commitment to enforcing its rental laws.

Short-Term Rental Licensing Requirement in New York City

As of March 2023, New York City requires all short-term rental hosts to register with the Mayor's Office of Special Enforcement (OSE) and obtain a short-term rental registration number before listing their property. This is per Local Law 18 passed in 2022.

To apply for a short-term rental license in NYC, hosts must:

• Create an account on the NYC.ID portal at https://strr-portal.ose.nyc.gov/s/
• Provide personal identification information
• Provide the address of the short-term rental
• Attest that the short-term rental is their primary residence where they live at least 183 days per year
• Provide a diagram of the short-term rental unit
• Pay a $145 application fee

Hosts are only allowed to register one dwelling unit, and it must be their primary residence. Rentals in NYCHA public housing and rent-regulated units are prohibited.

The application is submitted online through the OSE's Short-Term Rental Registration Portal. Once approved, the registration is valid for one year and must be renewed annually.

Booking services like Airbnb and Vrbo are prohibited from processing transactions for unregistered listings. Over 70% of Airbnb's NYC listings were removed after the new law took effect, as only 3,250 out of 23,000 listings applied for registration, and only 257 were approved as of September 2023.

Failure to register can result in fines between $1,000 to $5,000 for the first violation, and up to $7,500 for subsequent violations. Since 2016, the OSE has issued over 13,000 violations against illegal short-term rentals and over $8 million in fines.

The strict regulations aim to crack down on illegal hotel operators while still allowing primary residents to occasionally rent out their homes. However, many hosts argue the rules are overly restrictive and will hurt responsible operators who rely on short-term rental income.

Required Documents for New York City Short-Term Rentals

To apply for a short-term rental registration number in New York City, hosts must submit the following documents through the online portal:

1. Government-issued photo identification: Acceptable forms include a driver's license, passport, IDNYC, or any other government-issued ID that shows the host's name, date of birth, and current address. This is used to verify the host's identity and primary residence.
2. Diagram of the short-term rental unit: Hosts must provide a sketch or floor plan showing the layout of the rental unit, including the location of bedrooms, bathrooms, and any common areas. The diagram must clearly label the specific rooms and spaces that will be rented to guests. This helps ensure compliance with occupancy limits and safety requirements.
3. Proof of primary residence: Hosts must provide two documents proving that the rental unit is their primary residence where they live for at least 183 days per year. Acceptable documents include a utility bill, bank statement, or government-issued document with the host's name and address dated within the past 60 days. Tax forms, leases, and mortgages may also be used if dated within the past year.
4. Lease agreement or letter from property owner (if applicable): If the host is a renter, they must submit a copy of their lease agreement showing that short-term subletting is allowed. If the lease prohibits subletting, the host must provide a notarized letter from the property owner granting permission for short-term rentals.
5. Proof of insurance (if applicable): While not required by law, hosts are strongly encouraged to obtain liability insurance and may need to provide proof of coverage to their booking platform. Airbnb provides free host protection insurance up to $1 million, but other platforms may require hosts to purchase their own policy.

These documents must be submitted as part of the online registration application, along with the $145 fee. The OSE reviews applications within 30 days and may request additional information or clarification. Once approved, the host receives a unique short-term rental registration number that must be included in all online listings and advertisements.

Failure to provide accurate and complete information can result in denial of the application or revocation of the registration. Hosts must update their registration information within 15 days of any changes to their primary residence or short-term rental unit.

By requiring these documents, the city aims to ensure that short-term rentals are operated safely and legally, without removing needed housing from the long-term rental market. However, some hosts have criticized the registration process as overly burdensome and invasive, particularly for those who only rent out their homes occasionally.

New York City Short-Term Rental Taxes

Short-term rental hosts in New York City are subject to several different taxes on the income they earn from renting out their properties. It's important to understand each tax type and the rates to ensure full compliance and avoid penalties. Here is a breakdown of the key taxes that apply:

New York State Sales Tax

The statewide sales tax rate in New York is 4%. This tax applies to all short-term rentals under 90 consecutive days. It is the host's responsibility to collect this tax from guests and remit it to the state.

New York City Hotel Room Occupancy Tax

In addition to the state sales tax, New York City charges a Hotel Room Occupancy Tax on rentals under 30 consecutive days. The rate is 5.875% of the rent charged plus an additional per room fee of $1.50 per day for rooms over $40 or $2.00 per day for suites of two or more rooms. This tax must also be collected by the host and paid to the city.

New York City Sales Tax

On top of the state and occupancy taxes, New York City imposes its own sales tax at a rate of 4.5%. Combined with the 4% state rate, the total sales tax on short-term rentals in the city comes to 8.5%. Again, hosts are required to add this to the guest's bill and forward the collected taxes.

So in summary, short-term rental hosts in New York City must charge and remit the following taxes:

1. 4% New York State sales tax
2. 5.875% New York City hotel room occupancy tax
3. $1.50-$2.00 per day hotel unit fee
4. 4.5% New York City sales tax

This results in an effective tax rate of over 14% plus the daily unit fee, a significant amount that hosts must factor into their pricing and budgeting. Failure to comply can result in audits, fines, and legal issues.

Possible Deductions and Write-Offs

The good news for short-term rental hosts is that many of the expenses involved in running a rental are tax deductible. This can help offset some of the tax liability. Some of the key deductions to consider include:

1. Mortgage interest
2. Property taxes
3. Rental insurance premiums
4. Utilities
5. Cleaning and maintenance costs
6. Supplies for guests
7. Platform service fees (e.g. Airbnb fees)
8. Depreciation of the property

Hosts should keep detailed records and receipts for all rental-related expenses. Working with an experienced tax professional is recommended to ensure all allowable deductions are claimed properly.

It's also important to note that if a property is rented for fewer than 14 days per year, the rental income is tax-free and does not need to be reported. However, no deductions can be claimed either in this case.

Understanding and complying with New York City's short-term rental tax laws is complex but critical. By staying on top of registration requirements, tax collection, and proper reporting, hosts can run a successful rental business while avoiding costly missteps with tax authorities. Careful record-keeping and professional guidance can further optimize hosts' tax strategies.

New York Statewide Short-Term Rental Rules

While many of the regulations around short-term rentals in New York are set at the local level by cities and towns, there are also some important statewide laws that Bridgehampton hosts need to be aware of.

The primary state law governing short-term rentals is the New York State Multiple Dwelling Law. This law distinguishes between two main types of dwellings:

1. "Class A" multiple dwellings include apartment buildings, condos, and co-ops with three or more units. These are intended for permanent residences only, defined as occupancy by the same person or family for 30 or more consecutive days. Short-term rentals of less than 30 days are prohibited in these properties when the host is not present.
2. "Class B" dwellings include hotels, bed and breakfasts, lodging houses, and other properties intended for transient occupancy. Short-term rentals are allowed in these types of properties.

So under state law, a host cannot rent out an entire apartment in a "Class A" building for less than 30 days. However, they may be able to rent out individual rooms if the host is present in the unit during the rental period.

In terms of taxes, New York State requires short-term rental hosts to collect and remit state sales taxes, which are currently 4% for rentals of less than 90 days. Hosts must register with the state tax department to receive a certificate of authority to collect these taxes.

Legislation has been proposed at the state level to create a statewide registry for short-term rentals, similar to what exists in other states like Massachusetts. The bill, introduced by State Senator James Skoufis in 2021, would require hosts to register with the state and obtain a registration number in order to list their properties on sites like Airbnb and Vrbo.

The registry would be used to help ensure compliance with local zoning rules and occupancy taxes. Platforms would only be allowed to list registered properties. Hosts would need to provide details like the address of the rental, contact information, and the number of days rented each year. The legislation is still pending as of June 2024.

So, in summary, while much of the short-term rental policy is set by localities in New York, hosts in Bridgehampton and across the state need to be mindful of the statewide Multiple Dwelling Law's restrictions on rentals in apartment buildings, the obligation to collect state sales taxes, and the potential for a statewide registry in the future. Consulting with a local lawyer well-versed in short-term rental law is advisable to ensure full compliance.

Does New York City Strictly Enforce Short-Term Rental Rules?

New York City has some of the strictest short-term rental regulations in the country and has demonstrated a strong commitment to enforcing these rules in recent years. The city is decidedly not Airbnb-friendly compared to many other major cities.

Since the implementation of Local Law 18 in September 2023, requiring hosts to register with the city and be present during guest stays, enforcement has ramped up significantly. In the first few months alone, the city issued thousands of violations to illegal short-term rental operators. Fines can reach up to $5,000 for hosts and $1,500 for platforms like Airbnb that process illegal transactions.

Prior to the new law, the city's Office of Special Enforcement (OSE) had already been aggressively pursuing illegal rentals. Between 2017-2021, the OSE conducted over 5,000 inspections, issued over 13,000 violations, and levied over $8 million in fines against illegal short-term rental operators. High-profile cases include a $1.2 million settlement with a real estate brokerage firm operating illegal rentals and a $1 million lawsuit against a landlord running an illegal hotel operation.

Discussions on forums like Bigger Pockets and Reddit overwhelmingly characterize NYC as extremely hostile to short-term rentals. Hosts report receiving steep fines, having their listings removed, and dealing with the stress of potential inspections and legal issues. Many have stopped hosting altogether due to the risks involved.

While some hosts continue to operate illegally, skirting the rules has become increasingly difficult. The city's data sharing agreements with platforms like Airbnb allow them to easily identify unregistered listings. Neighbor complaints also frequently trigger inspections.

Overall, New York City's tough stance against illegal short-term rentals leaves little gray area for hosts. The consensus is that operating an Airbnb that doesn't strictly comply with the city's rules is simply not worth the legal and financial risks. For most NYC residents, dreams of easy side income from short-term renting are effectively dead. The city has made it abundantly clear that protecting long-term housing stock and preserving neighborhood character will take priority over the short-term rental industry.

How to Start a Short-Term Rental Business in New York City

Starting a short-term rental business in New York City can be a complex process given the strict regulations, but it is possible to do so legally by following these key steps:

1. Understand the laws and regulations: Before anything else, thoroughly review New York City's short-term rental laws, including the Multiple Dwelling Law, the new registration requirements under Local Law 18, and the city's zoning and tax codes. Consult with a lawyer specializing in short-term rental law to ensure you have a clear grasp of what is and is not allowed.
2. Confirm eligibility: Verify that your property is eligible for short-term renting. Remember, rentals are only allowed in "Class B" dwellings like private homes and are prohibited in most apartments unless the host is present. The property must also be your primary residence where you live for at least 183 days per year. If you are a renter, check your lease to ensure subletting is permitted.
3. Register with the city: Apply for a short-term rental registration number through the city's online portal. You will need to provide personal identification, a diagram of the rental unit, proof of primary residence, and other documentation. Registration costs $145 and must be renewed annually. Wait for approval before listing your property.
4. Obtain necessary permits and licenses: Depending on your property type and location, you may need additional permits or licenses from the city. For example, if you are renting out rooms in a private home, you may need a bed and breakfast permit. If you are in a specially zoned area, there may be additional requirements. Check with your local borough office for details.
5. Prepare your space: Ensure your rental unit is safe, clean, and well-maintained. Install smoke and carbon monoxide detectors, provide fire extinguishers, and ensure all exits are clearly marked and accessible. Provide basic amenities like clean linens, towels, and toiletries for guests. Consider hiring a professional cleaning service between stays.
6. Create a compelling listing: Take high-quality photos of your space and write an accurate, detailed description highlighting key features and amenities. Be upfront about any rules or restrictions, such as no smoking or no pets. Set competitive rates based on comparable listings in your area.
7. Choose a booking platform: List your property on a reputable booking platform like Airbnb, Vrbo, or Booking.com. Make sure to include your city-issued registration number in your listing. Keep your calendar up to date and respond promptly to inquiries and booking requests.
8. Manage your bookings: Communicate clearly with guests before, during, and after their stay. Provide detailed check-in instructions and be available to answer questions or address issues that may arise. Promptly address any complaints or negative reviews. Keep accurate records of all bookings and financial transactions.
9. Comply with tax obligations: Short-term rentals in NYC are subject to a number of taxes, including state and city sales taxes and hotel occupancy taxes. Register with the state and city tax departments to obtain certificates of authority to collect these taxes from guests. Remit collected taxes on a quarterly basis and keep detailed records.
10. Stay informed and adaptable: The short-term rental landscape in NYC is constantly evolving, with new laws and regulations introduced frequently. Stay up to date on any changes that may affect your business, and be prepared to adapt your operations accordingly. Consider joining a local host organization or online forum to connect with other hosts and share information and resources.

Successfully operating a short-term rental in New York City requires careful planning, attention to detail, and a commitment to compliance. By following these steps and prioritizing guest experience and legal obligations, hosts can build a rewarding and sustainable business in this challenging but dynamic market.

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

If you have questions or concerns about short-term rental regulations and zoning in New York City, there are several key resources and contacts to be aware of:

Mayor's Office of Special Enforcement (OSE): The OSE is the city agency responsible for enforcing short-term rental laws. They handle registration, violations, and complaints. You can contact them by:

Phone: (212) 639-9675
Email: ose@ose.nyc.gov
Website: https://www1.nyc.gov/site/ose/index.page

Department of Buildings (DOB): The DOB oversees zoning, construction codes, and building safety. If you have questions about whether your property is eligible for short-term renting based on its certificate of occupancy or zoning designation, contact the DOB borough office for your property's location:

1. Manhattan: (212) 393-2551 / manhattandob@buildings.nyc.gov
2. Brooklyn: (718) 802-3675 / brooklyndob@buildings.nyc.gov
3. Queens: (718) 286-0600 / queensdob@buildings.nyc.gov
4. Bronx: (718) 960-4800 / bronxdob@buildings.nyc.gov
5. Staten Island: (718) 420-5419 / statenislanddob@buildings.nyc.gov

Department of Finance (DOF): The DOF administers the city's hotel room occupancy tax. You can contact them with questions about registering to collect and remit this tax:

Phone: (718) 935-6000
Website: https://www1.nyc.gov/site/finance/taxes/hotel.page

New York State Department of Taxation and Finance: For questions about state sales taxes on short-term rentals, contact:

Phone: (518) 485-2889
Website: https://www.tax.ny.gov/bus/st/hotel.htm

In addition to these official resources, there are several online communities where NYC hosts connect to share experiences, tips, and support:

Airbnb NYC Hosts Forum: https://community.withairbnb.com/t5/New-York-City/bd-p/New-York-en

An official forum moderated by Airbnb where NYC hosts can ask questions and discuss local issues.

NYC STR Alliance: https://www.nycstralliance.org/

A non-profit trade association representing short-term rental hosts in the city. They offer educational resources, legal support, and advocacy.

NYC Airbnb Hosts Facebook Group: https://www.facebook.com/groups/nycairbnbhosts/

A private Facebook group with over 5,000 members where NYC hosts share news, advice, and community.

r/AirbnbNYC Subreddit: https://www.reddit.com/r/AirbnbNYC/

A Reddit community focused on Airbnb hosting in NYC. Hosts discuss regulations, strategies, and challenges.

By engaging with these official contacts and online host communities, short-term rental operators in New York City can access the information and support they need to run their businesses responsibly and successfully. Building positive relationships with city agencies and fellow hosts is key to navigating the complex regulatory landscape and thriving in this competitive market.

What Do Airbnb Hosts in NYC on Reddit and Bigger Pockets Think about Local Regulations?

Scanning through discussions on Reddit, Bigger Pockets, and Airbnb's community forum reveals that many NYC hosts are frustrated and concerned about the strict new short-term rental regulations that went into effect in September 2023. Here is a sampling of thoughts and experiences shared by hosts:

On the r/AirBnB subreddit, user drewha23 started a thread titled "NYC Hosts" shortly after the new law took effect. As a 10-year Superhost whose family relied on the Airbnb income, they lamented the "new reality" hosts are facing and asked if anyone had discovered workarounds. Most replies advised pivoting to 30+ day rentals or getting out of the STR business in NYC altogether.

"Good you guys are fucking leeches," one blunt commenter replied, highlighting the lack of sympathy some have for hosts operating illegally. Overall, the thread depicted hosts grappling with the sudden loss of a major income stream.

In another Reddit thread titled "NY Local Law 18 (Banning Short term Rentals)", a 3-family homeowner shared how they were issued a $500 citation and ordered to cease STR operations immediately or face fines up to $10k and possible jail time, even though they were living in one of the units.

"It's really not fair in my opinion. Being forced to give up the rights of my property like this," the original poster vented. "Stuff like this should happen in dictatorships or communist countries, not America." Commenters were split between criticizing the host for knowingly violating the law and Multiple Dwelling Law, and sympathizing with a small-time landlord facing "overly restrictive" rules.

On Bigger Pockets, a 2017 thread titled "AirBnB in New York City?" provides a glimpse into the STR landscape before the latest crackdown. The most upvoted reply bluntly stated: "AirBnb is straight up illegal in NYC unless you own a 1-2 family home and are present during the guest's stay. All other scenarios are illegal."

Another host chimed in that while it's very hard to Airbnb legally in NYC, "there's a forum on facebook for NYC professional hosts- join and see the discussion." This suggests some hosts were congregating in private groups to discuss operating in the gray areas of the law.

Finally, on Airbnb's Community Center forum, a 2018 thread titled "Depressing New York City Hosts Meeting" recapped a gathering of local hosts dealing with increasing enforcement. The original poster described the city issuing violations and steep fines to hosts for things like not having sprinkler systems.

"What they are doing in NYC is TERRIBLE!" they wrote. "Fining people with STRs for bogus city code violations (like not having sprinkler systems, etc.), when they don't do it to anyone else in the building is straight up harassment. And the fines are financially crippling. Just horrible."

In summary, NYC hosts on these forums express a mix of frustration, defiance, and resignation in the face of the city's escalating restrictions on short-term rentals. Some blame the hotel lobby for pushing burdensome rules, while others accuse hosts of knowingly breaking the law for profit. The overall sentiment seems to be that legally hosting on Airbnb has become untenable for most in the city, leaving hosts to either adapt, operate in a risky gray area, or exit the STR business entirely. The new registration system rolled out in late 2023 appears to be the final nail in the coffin for many.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.