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

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

Short-term rental regulations in New York County, which encompasses Manhattan, are among the strictest in the United States. The city has implemented various laws and rules to regulate the operation of short-term rentals through platforms like Airbnb and VRBO. Here's what you need to know:

Starting a Short-Term Rental Business in New York

To legally operate a short-term rental in New York County, hosts must comply with the following requirements:

• Registration: As of September 5, 2023, all short-term rental hosts in New York City must register with the Mayor's Office of Special Enforcement (OSE) and obtain a registration number. Hosts are required to include this registration number in all advertisements and conspicuously post their registration certificate within the rental unit.
• Occupancy Limits: Only owner-occupied units can be used as short-term rentals, with a maximum of two paying guests permitted to occupy a rental unit at any given time, regardless of the property's size or number of bedrooms. Investor-owned or secondary homes are prohibited from short-term rental.
• Host Presence: The host must be present during the tenancy. All interior doors within the dwelling must remain unlocked to ensure unobstructed access for guests.
• Rental Duration: There is a limit of 90 days per calendar year for short-term rentals in New York City. Rentals for the same individual for 90+ consecutive days are exempt from sales tax.
• Taxes: Hosts must collect and remit applicable taxes, including New York State sales tax (4%), local city or county occupancy taxes (3-6%), and local sales taxes.
• Safety Requirements: Hosts must provide a diagram of normal and emergency exit routes, which must be conspicuously posted within the rental unit.

Failure to comply with these regulations can result in fines of up to $5,000 for hosts and $1,500 for platforms like Airbnb and VRBO. The strict nature of these rules has effectively created a "de facto ban on short-term rentals" in New York City, according to Airbnb.

Despite the regulations, some unregistered short-term hosts continue to operate in the city. This has led to legal challenges and debates about the responsibility of platforms like Airbnb in enforcing the rules.

For travelers, the new regulations mean that short-term rentals in New York City are transforming into makeshift roommate situations, with hosts required to be present during the stay. As hotel rooms remain expensive and limited, more visitors are turning to alternative accommodations like short-term rentals.

In summary, starting a short-term rental business in New York County requires careful adherence to the city's stringent regulations, including registration, occupancy limits, host presence, rental duration, taxes, and safety requirements. Prospective hosts should thoroughly research and understand these rules before listing their properties on platforms like Airbnb and VRBO.

Short-Term Rental Licensing Requirement in New York County

To legally operate a short-term rental in New York County hosts must obtain a Short-Term Rental Registration from the Mayor's Office of Special Enforcement (OSE). Here are the key requirements and details of the licensing process:

1. Eligibility: Only permanent occupants of the dwelling unit (whether owners or tenants) are eligible for registration. Hosts must be natural persons and cannot rent out an entire apartment or home for less than 30 consecutive days, even if they own or live in the building.
2. Application: Hosts must submit an online application through the OSE's Short-Term Rental Registration portal. The application requires providing personal and property details, including contact information, the rental address, and the number of days rented per year.
3. Fees: The application fee for registration is $145, which is non-refundable and must be paid at the time of submission.
4. Listing Information: If using a booking service platform (e.g., Airbnb, VRBO), hosts must provide OSE with the URL or listing identifier and the associated booking service name for all existing listings of the dwelling unit.
5. Processing Time: The OSE does not specify an exact processing time for registration applications. However, hosts are encouraged to apply well in advance of their intended rental start date.
6. Renewal: Short-term rental registrations are not transferable and must be renewed annually.
7. Prohibited Buildings: Certain buildings, such as NYCHA units, rent-regulated units, and those where the owner has opted into the OSE's prohibited building list, are ineligible for short-term rental registration.
8. Penalties: Failure to comply with the Short-Term Rental Registration Law can result in fines ranging from $1,000 to $7,500 per violation.

To submit a registration application or for further information, hosts should visit the OSE's Short-Term Rental Registration portal at https://www1.nyc.gov/site/specialenforcement/registration-law/str-registration-portal.page.

It is crucial for hosts to thoroughly research and understand the short-term rental regulations in New York County to ensure compliance and avoid penalties. Consulting with a local real estate attorney or accountant may also be beneficial in navigating the licensing process and other legal requirements.

Required Documents for New York County Short-Term Rentals

To apply for a short-term rental registration in New York County, hosts must provide the following documents:

1. Proof of Permanent Residency: Applicants must submit documentation proving they reside at the rental property. Acceptable forms of proof include:

1. Utility bill dated within the last 60 days (e.g., telephone, gas, electric, cable, or water)
2. Government agency correspondence showing the home address
3. Voter registration card
4. Social security statement
5. Bank statement dated within the last 60 days

Purpose: To ensure only permanent occupants of the dwelling unit (owners or tenants) are eligible for registration.
Where to Get: Utility providers, government agencies, banks, or personal records.

2. Lease Agreement or Ownership Documentation: Tenants applying for short-term rental registration must certify they are not prohibited by their lease or other agreements from hosting short-term rentals. Owners should provide proof of ownership.

Purpose: To confirm the applicant has the legal right to host short-term rentals in the dwelling unit.
Where to Get: Lease agreements from landlords or ownership documents from the County Clerk's Office.

3. Listing Information: If using booking platforms (e.g., Airbnb, VRBO), hosts must provide the URL or listing identifier and the associated booking service name for all existing listings of the dwelling unit.

Purpose: To enable the city to verify and monitor short-term rental listings for compliance with regulations.
Where to Get: Personal records or booking platform accounts.

Upon approval, the Mayor's Office of Special Enforcement (OSE) will provide hosts with a short-term rental registration certificate, which includes:

1. The full address associated with the registration
2. A unique short-term rental registration number
3. An expiration date
4. An emergency contact phone number

Hosts must include their registration number in all advertisements and conspicuously post the registration certificate within the rental unit.

It's crucial for hosts to understand that obtaining a short-term rental registration does not override any existing lease agreements, building bylaws, zoning restrictions, or other applicable laws that may prohibit short-term rentals.

New York County Short-Term Rental Taxes

Short-term rental hosts in New York County (Manhattan) are subject to various state and local taxes. Here's a breakdown of the key tax types and rates:

1. New York State Sales Tax: Short-term rentals are subject to the statewide sales tax rate of 4%. This tax is administered by the New York State Department of Taxation and Finance.
2. New York City Sales Tax: In addition to the state sales tax, short-term rentals in New York City are subject to a local sales tax of 4.5%. This brings the total sales tax rate for short-term rentals in New York County to 8.5%.
3. New York City Hotel Room Occupancy Tax: Short-term rentals in New York City are also subject to the Hotel Room Occupancy Tax, which is 5.875% of the listing price (including cleaning fees) for reservations of fewer than 30 consecutive days. This tax is collected by the city.
4. Hotel Unit Fee: A Hotel Unit Fee of $1.50 per day applies to short-term rentals in New York City, in addition to the other taxes.

Hosts must collect these taxes from guests and remit them to the appropriate state and local tax authorities. Failure to comply with tax laws can result in fines and penalties.

Potential Tax Deductions

Short-term rental hosts in New York County may be able to deduct certain expenses related to their rental business on their income tax returns. Some potential deductions include:

1. Mortgage interest
2. Property taxes
3. Rental property insurance
4. Utilities
5. Cleaning and maintenance costs
6. Supplies and amenities provided to guests
7. Depreciation of the rental property and furnishings
8. Advertising and marketing expenses

It's essential for hosts to keep accurate records and consult with a tax professional to determine which deductions they may be eligible for based on their specific circumstances.

New York-Wide Short-Term Rental Rules

New York State has been working on implementing statewide regulations for short-term rentals to create a more uniform system across counties. Here are some of the key state-wide rules and proposed legislation that affect New York County hosts:

1. Proposed Statewide Registry: In April 2024, lawmakers introduced legislation to create a statewide registry of short-term rental properties. If passed, this bill would require property owners to register their units with the state every two years. Municipalities with their own registries would share data with the state system. The goal is to better understand the scale of the short-term rental market and its impact on housing availability and affordability.
2. Tax Collection: The proposed legislation would also allow counties to tax short-term rentals similar to hotels, potentially generating millions in revenue that could be used to address housing issues. Currently, some counties have agreements with platforms like Airbnb to collect and remit occupancy taxes, but it's not consistent statewide.
3. Multiple Dwelling Law: New York's Multiple Dwelling Law prohibits renting out an entire apartment in a building with three or more units for less than 30 days unless the permanent tenant is present during the stay. This effectively bans short-term rentals in many buildings in New York City.
4. New York City Regulations: While not applicable state-wide, New York City has strict short-term rental regulations that hosts must follow. As of September 2023, NYC Local Law 18 requires hosts to register with the Mayor's Office of Special Enforcement and obtain a short-term rental operating license. Hosts must be present during guest stays, and rentals are limited to two guests.
5. Tax Obligations: Short-term rental income is subject to state and local sales taxes (totaling 8.5% in New York County), the New York City Hotel Room Occupancy Tax (5.875%), and a per-day Hotel Unit Fee ($1.50). Hosts are responsible for collecting and remitting these taxes to the appropriate authorities.
6. Zoning and Building Restrictions: Local zoning laws, leases, co-op and condo board rules, and homeowners' association bylaws may prohibit or restrict short-term rentals. Hosts must ensure they comply with all applicable regulations before listing their property.

As lawmakers continue to debate and refine statewide short-term rental legislation, it's crucial for New York County hosts to stay informed about both state and local regulations to ensure compliance and avoid penalties. Consulting with local officials, property managers, and legal professionals can help navigate the complex and evolving landscape of short-term rental rules in New York.

Does New York County Strictly Enforce STR Rules?

New York County is known for having some of the strictest short-term rental regulations in the United States, and the city does actively enforces these rules. The implementation of Local Law 18 in September 2023 has made it even more challenging for hosts to operate legally in the city.

Compared to other major cities, New York is decidedly not Airbnb-friendly. The stringent requirements for host registration, occupancy limits, and host presence during guest stays have effectively created a "de facto ban on short-term rentals" in the city, according to Airbnb. The company has unsuccessfully fought against these regulations, arguing that they unfairly target their business model.

Despite the strict rules, some hosts continue to operate short-term rentals in New York County without proper registration or in violation of the regulations. However, this comes with significant risks. Failure to comply with the law can result in hefty fines ranging from $1,000 to $7,500 per violation. The city has also been proactive in identifying and penalizing non-compliant listings.

The general consensus among the real estate investing community on platforms like BiggerPockets and Reddit is that New York County is not an ideal location for short-term rental investments due to the restrictive regulations and active enforcement. Many investors advise against pursuing STRs in the city, as the potential risks and penalties outweigh the potential rewards.

In summary, New York County strictly enforces its short-term rental rules, making it one of the least Airbnb-friendly cities in the United States. While some hosts may still operate despite the regulations, the risks of non-compliance are high. Investors looking to enter the short-term rental market are generally advised to consider other locations with more favorable regulatory environments.

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

Starting a short-term rental business in New York County (Manhattan) can be a challenging but rewarding venture. Here's a step-by-step guide to help you navigate the process:

1. Determine Eligibility: Ensure you are a permanent occupant of the dwelling unit (either as an owner or tenant) and that your lease agreement does not prohibit short-term rentals. Only owner-occupied units are eligible for short-term rental in New York County. Review your lease agreement, co-op or condo board rules, and any other applicable regulations to confirm your eligibility.
2. Register with the City: As of September 5, 2023, all short-term rental hosts in New York County must register with the Mayor's Office of Special Enforcement (OSE) and obtain a registration number. Apply through the city's Short-Term Rental Registration portal, providing personal and property details, and pay the $145 application fee. Apply well in advance of your intended rental start date, as processing times may vary.
3. Prepare Your Space: Ensure your rental unit is safe, clean, and well-maintained. Install smoke detectors, carbon monoxide detectors, and fire extinguishers as required by law. Create a diagram of normal and emergency exit routes, which must be conspicuously posted within the unit. Provide high-quality amenities and thoughtful touches to create a memorable guest experience and encourage positive reviews.
4. Set House Rules: Establish clear house rules that comply with local regulations, such as occupancy limits (maximum of two paying guests), noise restrictions, and parking guidelines. Communicate these rules to guests before and during their stay. Be a considerate neighbor and address any concerns promptly to maintain positive relationships within your community.
5. Obtain Insurance: Secure appropriate insurance coverage for your short-term rental business, such as homeowners' or landlord insurance with short-term rental endorsements. This will protect you from potential liability issues and property damage. Shop around and compare policies from different providers to find the best coverage for your needs and budget.
6. List Your Property: Once registered, create a listing on popular short-term rental platforms like Airbnb or VRBO. Include accurate descriptions, high-quality photos, and your registration number. Set competitive rates based on market research and your property's unique features. Optimize your listing with keyword-rich titles, detailed descriptions, and attractive photos to stand out from the competition.
7. Manage Bookings and Guests: Respond promptly to booking inquiries and guest questions. Provide detailed check-in instructions and be available to address any concerns during their stay. Maintain a high level of cleanliness and professionalism throughout the rental process. Use a property management software or hire a professional property manager to streamline operations and ensure a smooth experience for both you and your guests.
8. Comply with Tax Obligations: Collect and remit all applicable taxes, including New York State sales tax (4%), New York City sales tax (4.5%), Hotel Room Occupancy Tax (5.875%), and the $1.50 per day Hotel Unit Fee. Keep accurate records of your rental income and expenses for tax purposes. Consult with a tax professional to ensure compliance and maximize potential deductions related to your short-term rental business.

By following these steps and staying informed about local regulations, you can successfully launch and operate a short-term rental business in New York County. Remember, the key to success is providing exceptional guest experiences while maintaining compliance with the city's strict rules and regulations.

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

For questions about short-term rental regulations and zoning in New York County (Manhattan), the primary point of contact is the Mayor's Office of Special Enforcement (OSE). The OSE is responsible for enforcing the city's short-term rental laws and overseeing the registration process for hosts.

Contact Information:

1. Address: 22 Reade St, 4th Floor, New York, NY 10007
2. Phone: (646) 576-3477 or (646) 576-3533
3. Email: Available to Pro Users on MuckRock
4. Website: https://www.nyc.gov/site/specialenforcement/about/contact-us.page

Hosts can submit questions or concerns about short-term rental regulations through the OSE's online contact form or by calling 311, the city's non-emergency service line.

In addition to contacting the OSE directly, short-term rental hosts in New York County may find the following online communities and resources helpful:

• r/AirbnbHosts Subreddit: This Reddit community is dedicated to Airbnb hosts worldwide, providing a platform to share experiences, ask questions, and seek advice from fellow hosts. https://www.reddit.com/r/AirbnbHosts/
• BiggerPockets Short-Term & Vacation Rental Forum: BiggerPockets, a popular real estate investing platform, has a dedicated forum for short-term and vacation rental discussions. Hosts can connect with other investors, ask questions, and stay informed about industry trends and regulations. https://www.biggerpockets.com/forums/530-short-term-vacation-rental-discussions
• Airbnb Community Center: Airbnb's official community forum allows hosts to interact with each other, share experiences, and find answers to common questions. While not specific to New York County, the community can provide valuable insights and support. https://community.withairbnb.com/t5/Hosting/ct-p/hosting
• Short Term Rental Advocacy Center: This organization provides resources and support for short-term rental hosts, including information on local regulations, advocacy efforts, and best practices. https://www.stradvocacy.org/

By staying connected with these communities and resources, short-term rental hosts in New York County can stay informed about the latest regulatory developments, share experiences with fellow hosts, and find support in navigating the complex landscape of short-term rentals in the city.

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

Airbnb hosts in New York County have expressed frustration and concern about the strict short-term rental regulations on various online forums. Here are some real-life experiences and stories shared by hosts:

Reddit - r/AirBnBHosts: In a thread titled "Airbnb in NYC with registration laws," a host shared their experience of hosting in New York City for 10 years as a Superhost. The host's family depended on the income from Airbnb, but the new regulations have made it challenging to continue operating. They asked if anyone had discovered a workaround, but most responses suggested pivoting to mid and long-term rentals or exploring alternative options like hosting travel nurses.

BiggerPockets - Short-Term & Vacation Rental Forum: In a post titled "New York City Short Term Rental," a user inquired about purchasing a small multi-family property near Rockaway Beach for short-term rentals. However, they acknowledged that NYC had recently cracked down on STRs and wondered if it was still possible to rent out places short-term or if there was a medium-term rental market. Responses confirmed that rentals must be over 30 days or in a 3-family (or less) property where the owner lives on-site.

Reddit - r/AirBnB: A post titled "The situation is hopeless (at least in NYC)" shared a guest's experience staying in two Airbnb properties in NYC that were "total dumps" despite having high ratings. Commenters suggested that some hosts may be buying fake reviews to legitimize their listings and that many short-term rentals in NYC are illegal, with hosts not caring about the regulations.

Reddit - r/AirBnBHosts: In another thread, a host shared that Airbnb was just banned in single-family zoned areas in their town, affecting their listing in the basement of their personal home.

BiggerPockets - Short-Term & Vacation Rental Forum: A user asked if they should avoid investing in short-term rentals upstate New York, given the strict regulations in NYC. They mentioned that the town of Ithaca has new STR regulations, the biggest being that you cannot rent a non-owner-occupied property (except for lakefront properties).

These experiences highlight the challenges faced by Airbnb hosts in New York County due to the strict short-term rental regulations. Many hosts feel that the rules have made it nearly impossible to operate legally, forcing them to consider alternative options or risk non-compliance. The general sentiment among hosts on these forums is that the current regulatory environment in New York County is not conducive to running a successful short-term rental business.

Disclaimer: While we here at BNBCalc strive to keep all of our 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 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.