The Big Apple, otherwise known as New York City (NYC), has its own set of regulations for short-term rentals due to the high demand for accommodations in this bustling metropolis (and across its’ five boroughs). In September of 2023, NYC restrictions have tightened: New York City Local Law 18, also known as the Short-Term Rental Registration Law, requires short-term rental hosts to register with the Mayor’s Office of Special Enforcement (OSE).
It’s been reported that of Airbnb’s 23,000 NYC listings, only 9,500 are even legally eligible for license application. And that’s just short-term rental properties on Airbnb. Of those 23,000, only 3,250 properties have applied for permitting and of those 3,250, the city of New York has thus far only approved 257 registrations. Since the mandate, NYC Airbnb listings have dropped 70%. Let’s take a look at what it takes for short-term rental approval:
- 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
New York City short term rental violations can incur fines between $1,000 and $7,500. Be sure to follow regulations carefully and consider hiring a real estate attorney or accountant to ensure you’re adhering to your state, county, and city laws. Explore the laws further.