Guide to New York State's (and NYC’s) Short-Term Rental Regulations

New York’s short term rental tax requirements

• New York State sales tax: 4%
• Local city or county occupancy taxes range from 3% to 6%
• Local sales taxes

Short term rental regulations in popular New York state destinations

Rochester

• Rochester, located on Lake Ontario’s Genesse River, is known for its rich history and stunning natural beauty. Property owners must register with the City of Rochester and obtain a short-term rental permit. Here are several key regulations:
• A permit is required to operate a short-term rental in Rochester. The permit must be renewed annually.
• Only owner-occupied units can be used as short-term rentals. Investor-owned or secondary homes are prohibited from short-term rental.
• There is a limit of 90 rental days per year for a permitted short-term rental unit.
• The maximum occupancy for a short-term rental is 2 persons per bedroom, not exceeding 6 total occupants.
• Onsite parking is limited to the number of legal bedrooms in the rental.
• Units must meet various safety requirements including smoke detectors, fire extinguishers, CO detectors.
• Hosts on platforms like Airbnb must obtain a license to operate in Rochester and pay an annual licensing fee.
• Listings can only be advertised on platforms with an approved permit number displayed.
• Violations can result in revoked permits and fines up to $10,000.

Niagara Falls

• Only a homeowner (owner of record) may apply for a Special Permit and only for properties with fewer than three units. The fees are $250 for a single family short-term rental unit and $400 for a two-unit property. Licenses must be renewed annually.
• No mobile homes, RVs, travel trailers, yards, sheds, garages, vehicles, tents, yurts. No affordable housing.
• Owners must acquire a short-term rental license within a year of obtaining the Special Permit.
• The dwelling unit must be rented in its entirety.
• A letter must be issued by an architect or engineer confirming the property is compliant with local building and safety codes.
• Hosts must show proof of completion and certification from the Destination Niagara USA’s “EXP Program.”
• Insurance is a must with a proof of aggregate (total payout per policy duration) of no less than $1,000,000.

Buffalo

• Homeowners must register their properties with the Department of Permits and Inspections Services and submit a business license application to the City of Buffalo. The initial registration fee is $150 with a $75 annual renewal fee.
• A non-homeowner-occupied rental property requires the owner to file for a special use permit. The initial registration fee is $250 with a $150 annual renewal fee. (Local agents must oversee properties for owners outside of Erie County.)

Short term rental regulations in NYC

• Hosts or property owners must apply for and obtain an official short-term rental permit. The application is $145. Applicants must establish a NYC.ID account.
• In addition to obtaining a permit, all short-term rental hosts must provide details like contact info, rental address, and number of days rented per year.
• Only units that serve as legal primary residences (based on spending over half the year there) can be rented short-term. Pure investment or secondary properties are prohibited from short-term rental.
• Hosts cannot rent out an entire apartment (including all permanent residential buildings) rentals for less than 30 consecutive days.
• Hosts must “maintain a common household.” In other words, they must be sharing the residence through the duration of a guest’s stay. (This is bad news for Vrbo which only permits entire home and not home-sharing stays.)
• Occupancy rules state that no more than 2 guests are allowed per stay.
• Properties that are categorized as NYCHA units or are rent-regulated units are prohibited from short term rentals.
• In addition to state taxes, NYC hosts must pay: – 5.875% city hotel room occupancy tax – $1.50 per unit per day city hotel unit fee – 8.875% city sales tax

Tips for short-term rental compliance

• Research state laws and local government regulations thoroughly before listing a property.

• Comply with all registration fees and permit, inspection, and taxation requirements.
• Pay close attention to occupancy limits, parking rules, noise ordinances, land use and zoning regulations, and other restrictions (and exemptions!).
• Check condo and co-op rules and bylaws.
• Keep up to date on new rules, New York State bills, laws, and proposals impacting short-term rentals. Contact the New York State Department of Taxation and Finance or city officials with any questions.
• Establish open lines of communication with your neighbors and address any concerns they may have. Being a considerate and responsible host will help maintain positive relationships within the community.
• Regularly inspect and maintain your rental property to ensure it meets all safety and operational standards and housing codes.