The landscape of short-term rentals in New York, especially in light of platforms like Airbnb, is complex due to stringent regulations that have evolved significantly over the years. For property owners and potential renters, understanding these legal intricacies is essential for compliant and profitable operations.
The Current Regulatory Framework
Recent legislation, particularly New York City's Local Law 18, has dramatically altered the operation of short-term rentals. This law mandates hosts registering with the Office of Special Enforcement (OSE) to obtain a license. The regulations restrict rentals to situations where the host is present during the stay, limit the number of guests to two, and cap the rental duration to 30 days​​. Furthermore, advertising short-term rentals that don't comply with these restrictions could lead to significant fines​​.
Subletting and Roommate Arrangements
For tenants considering subletting their apartment or taking in a roommate to bypass these restrictions, New York Real Property Law (RPL) provides guidance. Tenants in buildings with four or more residential units generally have the right to sublease their apartments, subject to the landlord's consent, which cannot be unreasonably withheld​​. However, sublets in Class A dwellings for periods of less than 30 consecutive days directly violate the short-term renting restrictions​​.
Consequences of Non-compliance
Violating these laws can have severe implications. Landlords and tenants in breach of the short-term rental laws face steep fines, up to $7,500 for illegal subletting​​. Additionally, platforms hosting illegal rentals could incur fines, further complicating the operational landscape for short-term rental hosts​​.
Considerations for Rent-Stabilized Apartments
Rent-stabilized tenants must tread carefully, as subleasing their apartments for short-term stays can lead to accusations of profiteering and potentially result in eviction​. It's crucial to charge subtenants or co-occupants only a proportionate share of the regulated rent amount​.
Strategic Adjustments
Given New York's restrictive regulations, some hosts might consider switching to long-term rentals or looking to neighboring states with less stringent laws for short-term rental ventures​. This shift could help them maintain rental income while adhering to legal requirements.
Moving Forward
For property owners and renters alike, it's paramount to stay informed and compliant with New York's short-term rental laws. Whether you're considering renting out your property or looking for a short-term stay in New York, it's advisable to consult with legal professionals to navigate this complex landscape successfully.
For assistance with your short-term rental questions or any real estate legal matters in New York, don't hesitate to contact the Law Office of Taub & Bogaty. Call us at (516)531-2500 or visit our website at www.realestatelawny.com/contact to ensure your rental practices are compliant and profitable.