New York State Short-Term Rental Laws and Airbnb Regulations (2023)

New York is a popular location for Airbnb investments due to its many tourist attractions, including the most visited city in the United States. However, the state has introduced strict restrictions on short-term rentals, making it one of the most restrictive vacation rental markets in the country. Despite this, there are still opportunities for profitable Airbnb investments in New York, but it is important for investors to familiarize themselves with the state's laws and regulations.

If you're interested in turning your property into a short-term rental, but aren't sure if it's legal under Airbnb rules, Awning can help. As a nationwide property management company, we are well versed in the laws and regulations surrounding short-term rentals. Contact an awning agent today and let us help you determine if your property qualifies. Call or text415-223-2830

New York State Short Term Rental Definition

New York State defines short-term rentals as renting a home for less than 30 consecutive days. For tax purposes, however, they are defined as stays of less than 90 consecutive days.

The primary law governing short-term rentals in New York at the state level isNew York State Multiple Dwelling Law. This law distinguishes between two main types of housing pluritypes:

• "Class A" apartment buildingincludes rentals, apartment houses, condominiums, apartment houses, apartment hotels, single apartments, studio apartments, duplex apartments, self-catering apartments, and all other multi-family housing except "Class B" (defined below), which basically means all residential multi-family dwellings. households. "Class A" multiple dwelling units are awarded for permanent occupancy only, which means occupancy of 30 consecutive days or more. Short term rentals are prohibited.
• "Class B" apartment buildingincludes hotels, boarding houses, boarding houses, boarding schools, furnished boarding houses, lodgings, and other dwellings designed as private residences but occupied by one or two families with five or more transient guests, renters, or guests in a household. "Class B" multi-family dwellings are temporarily occupied, as temporary housing with or without meals.

The Multiple Dwelling Law basically means that short-term rentals in multi-family housing - "Class A" - are not allowed in New York. However, it is possible to rent a room in such accommodation if the permanent resident is present for the entire stay and paying guests have access to all rooms in the apartment. Owner-occupied short-term rental may be an option.

Starting a Short Term Rental Business in New York State

Starting an Airbnb business in New York does not require any specific procedures, as short-term rental licenses and permits are issued at the city/town level. So all prospective Airbnb hosts need to do is follow the standard procedures for starting a business in New York State. The good news is that New York is open for business and has established a simple process to get started.

The steps include:

• To form a unit. It is not necessary to form an LLC to operate a vacation rental in New York State.
• Get a federal tax ID, also known as an Employer Identification Number (EIN). This is done on the IRS website.
• Register as a New York State salesperson by applying for a sales tax certificate with the New York State Department of Taxation and Finance.
• Set up a NY.Gov ID.

New York State Short Term Rental License Requirements

New York has no state requirements for short-term rental permits and licenses. This is like the rules in most other US states, such as California, Colorado, andHawaiian card slot, to name a few. A significant exception to this general rule isFlorida Short Term Rental Laws, where a permit must be obtained from the state authorities.

Like most states, New York has left the regulation of the vacation rental industry in the hands of local county and city governments. As a result, to counter the negative impact of the extreme growth of the New York Airbnb industry on the availability and affordability of housing and on the safety and lifestyle of the community, most cities and towns throughout the Empire State have adopted strict vacation rental license requirements.

Documents Required for Short Term Rentals in New York State

Owners of short-term rental properties in New York State do not need any special documents to establish their business. The documentation they require is related to forming a legal entity, obtaining an EIN, and obtaining a state sales tax license. The required documents vary depending on the type of legal entity, so investors should check the requirements of the chosen business model.

In addition, they will need to have various documents to apply for a short-term rental license or permit in their city. Required documents vary from city to city, but include an application form, proof of ownership/permanent residence, building plan, floor plan, proof of safety compliance, contact information, and others.

New York State Taxes on Short Term Rentals

Running an Airbnb rental business in New York requires paying a number of different taxes. These include:

• New York State Sales Taxat a rate of 4%
• IVA local
• Local lodging/hotel/occupancy tax

Local taxes vary by county and city. More importantly, NEW short-term rentals for tax purposes are those rented for less than 90 consecutive days.

In most cases, vacation rental platforms like Airbnb and Vrbo do not collect or remit accommodation fees on behalf of hosts throughout New York.

New York Vacation Rental Tax Credits

Under federal rules, if you rent another home for 14 days or more in a calendar year and use it for personal reasons for 14 days or less in a calendar year, you qualify for a tax credit.

Specifically, you can claim the followingshort term rental tax credit:

• Mortgage loan interest
• Mortgage insurance premium
• Property tax and other taxes
• Depreciation
• property maintenance
• utilities
• Guest Supplies
• Cleaning, accounting, legal and other business services.
• Travel expenses related to the operation of your rental business
• home office expenses

It's important to take advantage of all available tax benefits because this will help you improve your cash flow and maximize your Airbnb ceilings.

State Short Term Rental Rules in New York State

Under New York State Multiple Dwelling Law, short-term rentals are illegal in "Class A" multiple dwellings, which include virtually all multi-family residential dwellings. Some exceptions, such as renting out part of an owner-occupied property, can be helpful as long as guests have access to every room in the property and there are no internal locks on the doors.

Airbnb rentals are legal in "Class B" multiple dwellings, which include hotels and other temporary residential buildings.

Although New York cities and towns have adopted their own rules to limit the additional negative impact of the short-term rental industry, these state laws should apply throughout New York State.

City of New York State Short Term Rental Rules

In addition to state regulations, most New York cities and towns have enacted their own city short-term rental laws to take into account the local real estate market and the needs and interests of the community. In general, cities in the state of New York have similar restrictive rules.California Short Term Rental Laws.

New York City Card Slot

New York City Administrative Codedefines a short-term rental as the rental of a dwelling or part thereof or of dwellings within a building for an occupancy of less than 30 consecutive days. Under New York State Multiple Dwelling Law, renting an apartment in a "Class A" multiple dwelling, which refers to a building with three or more permanent dwelling units, is not permitted for less than 30 consecutive days.

In New York it isforbiddento rent an apartment or entire house on a short-term basis, so non-owner-occupied short-term rentals do not apply. Hosts must be present during short-term guest stays and can only host two paying guests at a time. Each guest must have free and unimpeded access to all rooms and all exits from the apartment. Interior doors cannot have key locks, as they can create barriers in an emergency.

Short-term rental properties in New York City must be kept in a safe and code-compliant condition.

A new short-term rental registration law will take effect in January 2023 in New York. The new law requires vacation rental hosts to register with the city and will prevent short-term rental platforms like Airbnb from processing transactions unless registration information matches the city's database. This does not refer to "Class B" multiple dwellings or "Class B" multiple dwellings in mixed-use buildings.

To be issued a short-term rental registration or renewal, the following is required:

• The applicant must be a natural person who is a permanent resident and either an owner or a tenant who certifies that the lease does not prohibit short-term rental registration applications.
• The applicant must describe the units that short-term residents will be allowed to occupy.
• The applicant confirms that he understands and agrees to comply with all applicable codes, rulings, laws and other legal requirements.
• The governing body determines that the residents of the housing unit will not be exposed to danger.
• The governing body must verify the occupancy classification of the building or unit.
• The managing authority verifies that the building does not appear on the list of prohibited buildings.
• The applicant provides reservation service information for all listings on a reservation service.
• Payment of application or renewal fee between $20 and $100.

Illegal short-term rental operation in New York City will be fined between $1,000 and $7,500.

In addition to state sales tax, New York City hosts must pay5.875% occupancy tax in urban hotel rooms, $1.50 per unit per day Rate for urban hotel and 8.875% VAT.

Given New York's existing short-term rental laws, the Big Apple is not a good market to buy a vacation rental property. Although demand is guaranteed to be high due to the large number of tourists that visit New York each year, non-owner-occupied short-term rentals are not allowed.

Lake Placid Short Term Rental Laws

The Town of Lake Placid and the City of North Elba share the same laws and regulations regarding short-term rentals. the two unitsdefine a short term rentalas a residential unit rented in whole or in part for less than 30 consecutive nights. This includes any residential building, apartment, single-family residence, two-family residence, condominium, townhome, guesthouse, cabin, cabin, or accessory dwelling, as well as room and board, but excludes timeshare.

Under Lake Placid short-term rental laws, starting an Airbnb business requires a short-term rental permit.

The permit application requires:

• Information on all owners.
• Signed and notarized statement from the owner(s) of the property that proves compliance with the requirements related to smoke detectors, fire extinguishers, carbon monoxide detectors, exterior doors, electrical systems, fireplaces, and others.
• Calculation of the number of premises that meet the standards.
• Calculation of the number of parking spaces that meet the standards.
• Construction plan.
• Septic inspection report issued and dated within 90 days if the property has a private septic system.
• Contact information that must be within a 60 minute drive and available 24/7.
• House number visible from the street.
• Provisions for the weekly removal of waste.
• The bedrooms are at least 70 square meters.
• The applicant declares that it complies with all rules and regulations.
• Registration with the Occupancy Tax Program administered by the Essex County Treasurer's Office.
• Permit fee. Short-term rentals with owner card rented for a maximum of 14 days in a calendar year are exempt from paying it.

They can only issue one permit per property, so if a property has more than one residential unit, they can only allow one of them to be used as a short-term rental property. Permits are valid for two years and cannot be transferred to new owners.

In the Village of Lake Placid, a short-term rental property can be rented for only 90 days per month. calendar year, while this limit is extended to 120 days for properties outside the corporate town limits.

Failure to comply with Lake Placid Vacation Rental Regulations will result in a fine of $350 to $1,000, while a second offense will be subject to a fine of $1,000 to $3,000.

latest inOctober 2022The Town of Lake Placid and the City of North Elba have placed a moratorium on all new applications for short-term rental permits.

Meanwhile, aa special committee has been createdstudy the local Airbnb market and propose changes to existing law. The committee has recommended prohibiting short-term rentals without a host in residential areas, with a few exceptions, and allowing short-term rentals without a host in the Village Center, Gateway Corridor, Old Military Road Corridor, and the Rural District. The committee has proposed allowing short-term, on-site rentals in Lake Placid and North Elba. They have recommended lifting the limit on the number of rental days allowed per year.

Hethe local residence tax corresponds to 5%while Lake Placid's sales tax is 8%.

The situation with Airbnb Lake Placid is dynamic and further changes can be expected soon. Therefore, investors should monitor the most up-to-date Airbnb laws and regulations before purchasing a vacation rental in this part of New York state.

Albany card slot

There is no short-term rental law in Albany at the city level. This means that the available rules govern Airbnb rental properties in Albany at the state level in New York.

Albany Countydoes not collecta hotel development tax from owners of short-term rental properties or online marketplaces. There have been discussions between local authorities to collect this tax for economic benefits.

Before deciding to buy a vacation rental in Albany, we advise investors to check the new laws. Cities across New York State are reviewing existing short-term rental laws and introducing new ones in response to the impact of the rapidly expanding Airbnb industry.

Rochester Short Term Rental Laws

The City of Rochester, New York does not regulate short-term rentals locally. This means that Airbnb properties must comply with regulations imposed by state laws and codes.

In terms of taxes, owners of short-term rentals in Rochester must pay a6% tax on hotel room occupancyto Monroe County plus 8% sales tax: 4% to New York State and 4% to Monroe County.

Due to the general lack of regulations for vacation rentals, investing in an Airbnb property in Rochester may be a good idea.

buffalo card slot

The Buffalo City Common Council approved anew communal housing orderin October 2019, which governs short-term rental. Under the executive order, homeowners must register with the Department of Permits and Oversight through a business permit application.

The City of Buffalo distinguishes between two types of short-term rentals:

• Owner Occupied Short Term Rental: Refers to both single-family and multi-family homes outside the N-4-30 and N-4-50 zones. They prohibit short-term rentals in apartment buildings and townhouses if the homeowners' associations prevent it. The following fees apply: $25 or $50 per year to join the registry, $150 in the first year and $75 in subsequent years for the certificate application, and $75 for the property inspection.
• Short Term Rental Not Owner Occupied: They face more regulations in the N-4-30 and N-4-50 zones, and a special permit is required for properties in the N-2R and N-3R zones. The following fees apply: $25 or $50 per year to join the registry, $250 in the first year and $150 in subsequent years for the certificate application, and $75 for the property inspection.

Short-term rentals in Buffalo in the N-4-30 and N-4-50 zones, which consist of single-family homes, are not completely prohibited, they require zoning, which means a public hearing and community input.

Submit an application for a business licenseFor an Airbnb property in Buffalo the following is required:

• Official photo ID
• Two pieces of mail showing residence.
• exit plan
• Application form
• license statement
• Notification form signed by the Council.
• Information on short-term rental housing
• owner information
• agent information
• Other local contact details
• Presence of security elements.
• Application or renewal fee

Owners of short-term rental properties in Buffalo must pay a3% Hotels in Erie Countyand a sales tax of 8.75%, which combines the New York State rate and the Erie County rate.

Managing a vacation rental in Buffalo is feasible, but you face zoning restrictions. Before purchasing a short-term rental investment property, investors should check zoning regulations for the exact location of the property.

Carry

New York State seems like the ideal place to start a vacation rental business. The state attracts millions of tourists and other visitors each year, with many preferring to stay in comfortable and affordable Airbnbs rather than traditional hotels. However, New York State short-term rental laws by city are some of the strictest and most restrictive in the country. Therefore, investors should carefully study local regulations before purchasing a vacation home in any New York city or town.

If you're interested in turning your property into a short-term rental, but aren't sure if it's legal under Airbnb rules, Awning can help. As a nationwide property management company, we are well versed in the laws and regulations surrounding short-term rentals. Contact an awning agent today and let us help you determine if your property qualifies. Call or text415-223-2830