Yonkers Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Yonkers, New York?

Short-term rental regulations in Yonkers are governed by a complex web of New York state laws, local zoning codes, and city ordinances. Hosts looking to start an Airbnb or vacation rental business in Yonkers need to carefully navigate these rules to ensure compliance and avoid potential fines, legal issues, or disruptions to their operations.

The regulatory landscape for short-term rentals in Yonkers is shaped by several key factors, including the statewide Multiple Dwelling Law, which restricts unhosted rentals under 30 days in buildings with three or more units, and the city's zoning code, which may consider STRs a prohibited "transient" use in residential areas. Additionally, Yonkers imposes a 3% Hotel Room Occupancy Tax on all short-term rentals, and hosts must also collect and remit state sales taxes.

Navigating this complex patchwork of state and local regulations can be challenging for aspiring Airbnb and VRBO hosts in Yonkers. The city does not have a specific STR licensing system, but this does not mean that hosts can operate without oversight or compliance obligations. Failure to adhere to the applicable laws and tax requirements could result in fines, legal action, and suspension of hosting privileges on major STR platforms.

Despite the regulatory challenges, some intrepid entrepreneurs have successfully launched short-term rental businesses in Yonkers. By doing thorough due diligence, consulting with local officials and experienced hosts, and developing a comprehensive compliance strategy, these operators have found opportunities to capitalize on the city's diverse attractions and proximity to major destinations like New York City.

However, the limited online discussion among Yonkers hosts on forums like Bigger Pockets and Reddit suggests that the city's STR market may be less visible and active compared to other popular vacation rental destinations. This lack of extensive peer-to-peer information sharing underscores the importance of offline networking and research for aspiring hosts seeking to understand the day-to-day realities and best practices of running a compliant and profitable STR business in Yonkers.

Starting a Short Term Rental Business in Yonkers

Before listing a property on popular short-term rental platforms like Airbnb or VRBO, prospective Yonkers hosts should conduct thorough due diligence on the applicable regulations. This includes reviewing the city's zoning code, understanding the terms of their lease or HOA rules if they are renters or belong to a homeowners association, and ensuring their plans align with the state's Multiple Dwelling Law.

Yonkers has specific regulations governing short-term rentals, and individuals looking to start an Airbnb or VRBO business should familiarize themselves with these rules. The city's regulations may impact the feasibility and profitability of such a venture, and hosts need to understand the potential risks and limitations.

One key consideration for aspiring Yonkers STR operators is the property type and ownership structure. The New York Multiple Dwelling Law prohibits unhosted rentals under 30 days in buildings with three or more units, which significantly restricts the pool of eligible properties for short-term rental use. Single-family homes and two-family dwellings are generally exempt from this law, as are owner-occupied properties where the host is present during the guest's stay.

However, even properties that are not subject to the Multiple Dwelling Law's restrictions may face challenges under Yonkers' zoning code. The code defines "dwelling units" as being intended for permanent occupancy, while "transient occupancy" refers to hotels, motels, and lodging for under 30 days. This language suggests that STRs in residential zones could potentially be interpreted as a prohibited use, creating additional regulatory hurdles for hosts.

Given the complexity of the legal landscape, aspiring Yonkers STR operators should consult with local officials, such as the Department of Housing and Buildings and the Department of Planning and Development, to ensure their property and rental plans comply with all applicable regulations. Hosts should also review their lease agreements or HOA bylaws for any restrictions on subletting or short-term rentals, and obtain written permission from their landlord or HOA if required.

While some Airbnb listings do exist in Yonkers, the regulatory environment is complex and not always clear cut. Hosts should proceed cautiously and seek guidance from local authorities and experienced operators to ensure they are setting up their business on a solid legal foundation. Failure to comply with state and local regulations could result in fines, legal action, and the loss of hosting privileges on major STR platforms.

Short Term Rental Licensing Requirement in Yonkers

As of the available information, there is no specific short-term rental license required by the City of Yonkers. However, this does not mean that hosts can operate without any oversight or compliance obligations.

At a minimum, Yonkers Airbnb and VRBO hosts need to register to collect and remit applicable state and local taxes, including the city's 3% Hotel Room Occupancy Tax. They must also ensure their property and rental plans comply with the statewide Multiple Dwelling Law, which significantly restricts short-term rentals in buildings with three or more units.

It's important to note that the absence of a specific STR license does not necessarily imply that the city welcomes or encourages short-term rental activity. The zoning code definitions suggest that STRs could potentially be interpreted as a prohibited "transient" use in residential areas. As such, hosts should be prepared to navigate some regulatory ambiguity and potential challenges.

The lack of a clear licensing framework for short-term rentals in Yonkers may create uncertainty for hosts and guests alike. Without a standardized set of requirements and inspections, there may be more variability in the quality and safety of STR properties compared to traditional lodging options like hotels and bed and breakfasts.

However, the absence of a specific STR license could also be seen as a lower barrier to entry for aspiring hosts, as they do not need to navigate an additional layer of bureaucracy and fees to start their business. This may encourage more casual or part-time hosting, particularly in single-family homes and owner-occupied properties that are exempt from the Multiple Dwelling Law's restrictions.

Ultimately, the lack of a specific short-term rental licensing requirement in Yonkers does not absolve hosts of their responsibility to comply with other applicable laws and regulations. Hosts should still do their due diligence to ensure they are operating legally and safely, and be prepared to face potential consequences if they fail to do so.

Required Documents for Yonkers Short Term Rentals

While Yonkers does not have an STR-specific permit, hosts will need to provide various documents when registering their business with the state and setting up their operations. These may include:

• Identification, such as a driver's license or passport, to prove identity and age
• Proof of residence or ownership for the STR property, such as a deed, property tax bill, or utility bill in the host's name
• Employer Identification Number (EIN) from the IRS, which is required for most businesses, even sole proprietorships
• New York State Certificate of Authority for sales tax collection, obtained through the New York Business Express website
• Excerpts from their lease agreement showing permission to sublet, if the host is a renter
• Business formation documents, like Articles of Organization for an LLC, if the host chooses to create a legal entity for their STR business

The specific documentation requirements for short-term rentals in Yonkers are not explicitly enumerated in the city's codes or published guidance. For the most accurate and up-to-date information, hosts should directly contact the relevant local authorities, such as the Department of Housing and Buildings or Department of Planning and Development.

In addition to these legal and administrative documents, hosts may also need to provide certain information and certifications to the STR platforms they use to list their property. For example, Airbnb requires hosts to provide a valid government-issued ID, agree to their terms of service, and disclose any potential hazards or safety issues on the property.

Hosts should also maintain detailed records of their STR income and expenses, as well as any communications with guests and local authorities. These records may be necessary for tax purposes, to resolve disputes, or to demonstrate compliance with applicable laws and regulations.

Keeping organized and comprehensive documentation is an essential part of running a compliant and successful short-term rental business in Yonkers. By staying on top of the required paperwork and record-keeping, hosts can minimize their legal and financial risks and focus on providing a high-quality experience for their guests.

Yonkers Short Term Rental Taxes

One area where Yonkers does have clear rules for short-term rentals is taxation. The city imposes a 3% Hotel Room Occupancy Tax on "every occupancy of a room or rooms within the city". This tax is outlined in Local Law 19-2015 and is in effect from August 1, 2015 to September 1, 2024.

The 3% occupancy tax is in addition to the state sales tax and any other applicable local taxes that hosts must collect from guests and remit to the proper authorities. As of 2023, the sales tax rate in Yonkers is 8.875%, consisting of the 4% state tax, the 3% city tax, and the 0.375% Metropolitan Commuter Transportation District (MCTD) tax.

Statewide, there is also an additional 6% sales tax on short-term passenger car rentals of less than one year, as well as a 6% special supplemental tax on car rentals in the MCTD region which includes Yonkers. Hosts offering car rentals as part of their STR business would need to collect and remit these taxes as well.

Failure to properly register for and pay applicable taxes can result in audits, fines, and legal consequences for Airbnb and VRBO hosts. The Yonkers Department of Finance and Tax Enforcement is responsible for ensuring compliance with the city's tax laws.To comply with their tax obligations, Yonkers STR hosts should:

• Register with the New York State Department of Taxation and Finance to obtain a Certificate of Authority for sales tax collection. This can be done online through the New York Business Express website.
• Set up a process to collect the 3% Yonkers Hotel Room Occupancy Tax and the 8.875% state and local sales taxes from guests. This can be done through the STR platform's built-in tax collection tools or manually by the host.
• Remit the collected taxes to the appropriate authorities on a quarterly basis, using the forms and payment methods specified by the Department of Taxation and Finance and the Yonkers Department of Finance and Tax Enforcement.
• Keep detailed records of all STR income, expenses, and tax payments, and consult with a qualified tax professional to ensure proper reporting and compliance.
• Monitor any changes to state and local tax laws that may affect their STR business, and adjust their tax collection and remittance processes accordingly.

By staying on top of their tax obligations, Yonkers STR hosts can avoid costly penalties and legal issues, and contribute to the city's revenue base that supports local services and infrastructure. However, the added cost and complexity of tax compliance may be a deterrent for some aspiring hosts, particularly those operating on a small scale or part-time basis.

Yonkers wide Short Term Rental Rules

Beyond taxes, Yonkers hosts must also contend with the restrictions imposed by the New York Multiple Dwelling Law (MDL). This state law prohibits rentals of less than 30 days in buildings with three or more units when the host is not present.Under the MDL, no more than two guests can stay in a space for less than 30 days, and guests must have full unrestricted access to the entire dwelling unit. The resident of the dwelling also must be present throughout the stay. This significantly limits the ability of Yonkers hosts to offer unhosted STRs in multi-unit properties.

There are some exceptions to the MDL's restrictions. Owner-occupied hosted stays may be allowed, and single-family and two-family homes are generally exempt. However, all STR operators still need to be mindful of the city's zoning regulations.

Yonkers zoning code definitions specify that a "Dwelling unit" is intended for permanent occupancy, while "Transient occupancy" refers to hotels, motels, and lodging for under 30 days. This suggests that STRs in residential zones could potentially be interpreted as a prohibited transient use, even if allowed under the MDL.

The interplay between the state MDL and local zoning rules creates a level of regulatory complexity and uncertainty for Yonkers hosts. Consulting with local officials and legal experts can help navigate these overlapping requirements.

In addition to the MDL and zoning code, Yonkers hosts may also be subject to other city-wide regulations that impact their STR operations, such as:

• Building and fire safety codes that specify requirements for smoke detectors, carbon monoxide detectors, fire extinguishers, and emergency exits
• Noise and nuisance ordinances that prohibit excessive noise, parties, or other disruptive behavior by guests
• Parking regulations that limit the number and location of vehicles associated with an STR property
• Trash and recycling rules that govern the proper disposal of waste generated by guests

Hosts should familiarize themselves with these and other applicable city-wide regulations, and ensure that their STR properties and guest policies are in compliance. Failure to do so could result in complaints, fines, or other penalties from local authorities.

Given the complex and evolving nature of short-term rental regulations in Yonkers, hosts should stay informed about any changes or updates to city-wide rules that may affect their business. Joining local host groups, attending city council meetings, and regularly checking the websites and newsletters of relevant government agencies can help hosts stay on top of the latest developments and adapt their operations accordingly.

Does Yonkers strictly enforce STR rules?

The available sources do not provide a definitive picture of how aggressively Yonkers enforces short-term rental regulations. While the city does not appear to be proactively cracking down on Airbnb and VRBO activity, hosts should be aware of the potential risks of operating out of compliance with state and local rules.

Fines for illegal short-term rentals in New York City, which shares the MDL restrictions, can range from $1,000 to $7,500 per violation. While Yonkers' enforcement practices may differ, the stiff penalties possible under the MDL underscore the importance of due diligence and compliance for hosts.

A new statewide law taking effect in September 2023 will require STR platforms to verify that listings have a valid registration number before processing transactions. This registration system, overseen by the state Department of State, may increase enforcement capabilities and make it easier for authorities to identify and penalize illegal STR activity.

Insights from local hosts suggest that Yonkers is not particularly Airbnb-friendly compared to some other cities, likely due to the complex web of state and local regulations. A Reddit thread discussing the legality of Airbnb in a rented multi-family home in Yonkers concluded that it would likely violate lease terms and the MDL.

However, the presence of active Airbnb listings in the city indicates that some hosts are operating STRs, either in compliance with the rules or under the radar. More engagement with experienced Yonkers hosts could shed light on the day-to-day realities and challenges of running a short-term rental in the city.

Hosts should also be aware that enforcement of STR regulations may be complaint-driven, meaning that violations are more likely to be investigated and penalized if they generate complaints from neighbors, landlords, or other affected parties. By being proactive in communicating with their community and addressing any concerns or issues promptly, hosts can reduce the likelihood of complaints and enforcement actions.

Ultimately, the level of enforcement of STR rules in Yonkers may depend on a variety of factors, including the specific location and type of property, the behavior of guests, and the priorities and resources of local authorities.

How to Start a Short Term Rental Business in Yonkers

Starting a short-term rental business in Yonkers requires careful planning and compliance with a complex web of state and local regulations. Here are the key steps aspiring Airbnb and VRBO entrepreneurs should follow:

Review the Yonkers zoning code and New York Multiple Dwelling Law to ensure your property type and rental plans are allowed.

• The Multiple Dwelling Law prohibits unhosted rentals under 30 days in buildings with three or more units, unless the host is present during the stay46.
• Single-family homes and two-family dwellings are generally exempt from this law4.
• Yonkers zoning definitions suggest short-term rentals in residential zones could potentially be considered a prohibited "transient" use, even if allowed under the MDL59.

If you are a renter, check your lease agreement for any provisions regarding subletting and short-term rentals.

• Most leases prohibit tenants from subletting or renting out the property on a short-term basis without the landlord's explicit permission68.
• Violating your lease terms could lead to eviction, even if the short-term rental is not technically illegal under state or local law6.

Register with the state to obtain a New York Certificate of Authority for sales tax collection49.

• This can be done online through the New York Business Express website.

Obtain an Employer Identification Number (EIN) from the IRS, which is required for most businesses, even sole proprietorships9.

Consider forming a business entity like a limited liability company (LLC) for liability protection and potential tax benefits9.

• New York allows online LLC formation through the Department of State website.

Prepare your space for guests, focusing on safety, cleanliness, and amenities that will make your listing stand out29.

• Develop a comprehensive listing description, house rules, and guest communication strategy.

Create compliant listings on platforms like Airbnb and VRBO, accurately representing your space, amenities, and booking policies29.

• Be transparent about the short-term rental regulations that apply to your property.

Understand your tax obligations, including the 3% Yonkers Hotel Room Occupancy Tax and state sales taxes37.

• Set up a process to collect these taxes from guests and remit them to the appropriate authorities.

Ensure you can comply with the Multiple Dwelling Law's restrictions, including the host presence requirement for rentals under 30 days in 3+ unit buildings46.

Keep detailed records of your short-term rental income and expenses, and consult with a tax professional to ensure proper reporting and compliance9.

By following these steps and staying informed about any changes to state and local regulations, Yonkers hosts can build a compliant and successful short-term rental business. However, the complex and evolving legal landscape makes it essential for hosts to do thorough due diligence and seek guidance from local authorities and experienced operators.

Who to contact in Yonkers about Short Term Rental Regulations and Zoning

For questions about zoning, building codes, and other regulations related to short-term rentals in Yonkers, hosts can contact:

City of Yonkers Department of Housing and Buildings
Phone: (914) 377-6500
Website: https://www.yonkersny.gov/government/departments/housing-buildings[7]15

City of Yonkers Department of Planning and Development
Phone: (914) 377-6557
Email: planning@yonkersny.gov16

For inquiries about the 3% Hotel Room Occupancy Tax and other city tax obligations:

City of Yonkers Department of Finance and Tax Enforcement
Phone: (914) 377-6310
Website: https://www.yonkersny.gov/government/departments/finance/tax-enforcement[15]

Hosts should also consult with a qualified attorney familiar with short-term rental regulations in Yonkers and New York state for personalized legal guidance. Local bar associations or accountant groups may be able to provide referrals to professionals with relevant expertise14.

What do Airbnb hosts in Yonkers on Reddit and Bigger Pockets think about local regulations?

There is limited discussion from Yonkers hosts on popular real estate investing forums like Bigger Pockets and Reddit, suggesting that the city's short-term rental market may be less visible and active compared to other major destinations.

A Bigger Pockets thread from 2018 includes a user asking about the prospects for owning a small rental property in Yonkers, but the post did not receive any replies offering insights on the regulatory landscape for short-term rentals17.

In a Reddit discussion about the legality of Airbnb in a rented multi-family home in Yonkers, the consensus among commenters was that such an arrangement would likely violate the lease agreement and could expose the host to penalties under the New York Multiple Dwelling Law5.

The lack of extensive online discussions among Yonkers hosts underscores the complexity and potential risks of operating short-term rentals in the city. Aspiring hosts may need to do more offline networking and research to connect with experienced operators and gain firsthand perspectives on the challenges and opportunities of running an Airbnb or VRBO in Yonkers.Some key takeaways from the limited host discussions include:

• Yonkers short-term rental regulations are complex and not always clear cut, creating uncertainty for hosts517.
• Renting out units in multi-family buildings on Airbnb likely violates both lease agreements and the Multiple Dwelling Law, exposing hosts to legal risks56.
• The city does not appear to be particularly Airbnb-friendly compared to some other markets, likely due to the restrictive state and local rules15.
• More engagement with experienced local hosts is needed to get a clearer picture of the realities and best practices of short-term rental operations in Yonkers517.

While the limited online discussions paint a challenging picture for aspiring Yonkers hosts, the presence of active Airbnb listings in the city suggests that some operators are finding ways to run viable short-term rental businesses210. By carefully navigating the regulatory landscape, thoroughly researching the applicable rules, and connecting with knowledgeable local resources, entrepreneurs may still be able to identify opportunities in this complex market.

However, the steep learning curve and legal risks underscore the importance of proceeding cautiously and doing extensive due diligence before launching a short-term rental venture in Yonkers. Hosts should be prepared to invest significant time and effort into understanding and complying with the relevant regulations, and to face potential pushback from landlords, neighbors, and local authorities. Building strong relationships and a support network within the local host community can be invaluable for navigating these challenges and achieving long-term success in the Yonkers market.ShareRewrite