With a destination as vibrant and exciting as New York City, it’s important to carefully plan where you are going to stay. There are plenty of options, from luxury hotels to apartments and beyond.
However, recent legislative actions have made staying in short-term rentals, such as those listed on Airbnb and Vrbo, very difficult. These recent changes have also caused confusion among renters and frustration among owners.
This article discusses how renters and owners can adjust, find alternative approaches, and stay informed of the latest policies. We will keep this article up to date, so bookmark it and check back often.
Are Airbnb and Short-Term Rentals (STRs) Banned in New York City?
The New York City government recently changed the rules and regulations of STRs. These rules do not eliminate all Airbnbs, VRBOs, and other STRs. However, they make it much more difficult to maintain or rent from one. Here are some of the new regulations facing landlords and renters alike:
1. Short-Term Rentals Must Be Registered
Property owners who want to rent out their space for fewer than 30 consecutive days must register with the Mayor's Office of Special Enforcement (OSE (opens in new tab)). This requirement is part of Local Law 18, also known as the Short-Term Rental Registration Law. This rule became enforceable on September 5, 2023. Registration is required for any rental under 30 days, and platforms like Airbnb are prohibited from processing transactions for unregistered properties.
2. Hosts Must Be Present
Short-term rentals of less than 30 days are only allowed if the host is present during the rental. The unit must also accommodate no more than two paying guests at a time (OSE (opens in new tab)).
3. “Class B” Dwellings Have Different Rules
Short-term rentals are not allowed for entire apartments or homes unless they are part of "Class B" multiple dwellings, which are legally approved for transient use. Properties that are rent-regulated, such as those governed by rent stabilization or rent control, cannot be used for short-term rentals (OSE (opens in new tab)).
4. There is a New Prohibited Buildings List
Buildings can be added to a "Prohibited Buildings List" if the owner notifies the OSE that short-term rentals are not permitted in their building. Rent-regulated units and properties managed by the New York City Housing Authority (NYCHA) are automatically prohibited from registration (source: OSE (opens in new tab)).
5. Safety and Legal Compliance
Hosts must comply with building codes and safety regulations, such as ensuring proper fire safety systems are in place. Illegal short-term rentals often lack proper safety features, and these regulations aim to mitigate safety risks for both guests and residents (source: OSE (opens in new tab)).
6. New Penalties for Non-Compliance
Hosts who fail to register or who operate illegal rentals can face fines, and booking platforms may face penalties if they process bookings for unregistered units. The Office of Special Enforcement has also made it easier for the public to report suspected illegal short-term rental activity.
Airbnb and VRBO Alternatives for Owners and Renters
Furnished Finder (opens in new tab) is one of the premiere alternatives to Airbnb and VRBO. There are no fees for renters, it’s optimal for extended visits, and there are a variety of properties. Here are more details about the benefits for both property owners and renters:
Benefits for Owners
Longer-Term Stability: Furnished Finder focuses on mid-term rentals, often between 30 days to a year. This provides more stability compared to short-term Airbnb rentals, which typically involve frequent tenant turnover. This is especially appealing to property owners who want less day-to-day management.
Compliance with NYC Regulations: Unlike Airbnb, which has strict limitations in NYC for rentals of fewer than 30 days, Furnished Finder primarily targets longer-term renters. This helps property owners avoid potential fines or penalties related to illegal short-term rentals.
Lower Fees: Furnished Finder charges a flat annual listing fee instead of a commission on each booking. This can result in significant savings for property owners compared to platforms that charge a percentage per booking, particularly for mid-to-long-term rentals.
Target Audience: Furnished Finder attracts a specific audience, such as traveling healthcare professionals, remote workers, and corporate clients, who are looking for reliable mid-term stays. This can lead to a more consistent rental income stream compared to the variability of short-term tourist bookings.
Benefits for Renters
Flexibility in Leasing: Furnished Finder caters to mid-term renters who need furnished accommodations for a few months. This flexibility can be ideal for professionals on temporary assignments, students, or anyone relocating temporarily. Unlike traditional leases that require long-term commitments, Furnished Finder allows renters to avoid being locked into a one-year lease.
Fully Furnished Units: All properties on Furnished Finder come fully furnished. This is convenient for renters who do not want the hassle and expense of buying or moving furniture for longer-term, but still temporary, stays.
Affordable Alternative to Hotels: Furnished Finder often provides a more cost-effective option compared to extended hotel stays. Renters can enjoy a home-like environment at a lower cost than staying in a hotel for several weeks or months.
Transparent Pricing: Furnished Finder doesn’t add high booking fees or commissions that are common on platforms like Airbnb. This makes the total rental cost more predictable for tenants, who are only responsible for rent and any potential security deposit.
Suitable for Travel Professionals: Furnished Finder is popular among business travelers, travel nurses and other professionals who need furnished accommodations close to work for several weeks or months. It’s a convenient way to secure safe and vetted housing near corporate offices or medical facilities.
Overall, Furnished Finder offers a practical solution for both property owners and renters who need a middle ground between short-term rentals and traditional long-term leases. These factors make Furnished Finder an appealing option in a highly regulated and expensive market like New York City.
How to Stay Up-to-Date About STRs
To stay up to date on New York City STR regulations, refer to this article and the following sources:
1. Official Government Websites
New York City Office of Special Enforcement (OSE (opens in new tab)): The OSE website provides the latest information on short-term rental laws and regulations in NYC, including requirements for hosts and ongoing enforcement actions.
NYC Housing and Building Department (opens in new tab): They provide information on permits, safety regulations, and compliance issues. Their website includes resources about legally compliant STR use in New York City.
2. Real Estate and Hospitality Blogs
Mashvisor Blog (opens in new tab): Mashvisor provides data-driven insights into the real estate market, including analysis of short-term rental trends, regulatory updates, and market conditions.
AirDNA (opens in new tab): AirDNA is a short-term rental analytics platform that provides insights into market trends, occupancy rates, and other data that hosts can use to stay competitive and compliant.
3. Social Media and Online Communities
Facebook Groups: There are several Facebook groups dedicated to NYC property owners and hosts, where members share experiences, updates, and strategies. Examples include "New York City Airbnb Hosts" or "Short-Term Rentals Regulation Discussion Group (opens in new tab)."
Reddit Communities: Subreddits like r/AirBnB (opens in new tab) are good forums to discuss industry news, regulations, and strategies with other hosts.
4. Industry Associations
Vacation Rental Management Association (VRMA): VRMA provides updates on industry best practices, legislation, and advocacy efforts. Their events and webinars are also good opportunities to keep up with changes.