For many travelers, home sharing has become an attractive alternative to staying in hotels. Short-term listings can be found in numerous cities worldwide, including every borough in New York City. However, many hosts are unaware that certain laws must be followed when generating income from guests. If you’ve decided to rent out your residence, seek counsel from a local real estate attorney to ensure you’re complying with the law. In the meantime, here’s an overview of what you should know to avoid facing penalties.
A Guide to Short-Term Rentals in NYC
What the Multiple Dwelling Law Says
New York’s Multiple Dwelling Law states that it’s illegal to rent out an entire unit for less than 30 days if the host isn’t present and the unit’s in a building that has three or more separate dwellings. Under the law, these types of residences are strictly reserved for permanent tenants with residencies lasting a minimum of 30 days. A more recent law was enacted that also prohibits advertisements of listings that violate the Multiple Dwelling Law.
Why Zoning Matters
If the Multiple Dwelling Law doesn’t preclude your participation in short-term rentals, you’ll next need to clarify with your real estate attorney that your listing adheres to the state’s zoning codes. These regulate which areas of the city home sharing rentals can occur. It’s possible you may have to pursue a change in zoning or apply for a modified certificate of occupancy before you can legally rent out your place. To have these changes approved, your unit must pass an inspection, which includes being found in compliance with strict safety requirements.
What Effect Leases Have
The above issues aside, if you’re a tenant, your lease might include specific restrictions about subletting without permission from the landlord. Rent-controlled and stabilized housing may also have policies that bar tenants from house sharing. Owners within a coop or condominium association could also be prevented from offering their residence as a temporary rental.
What Tax Implications to Know
You’ll also need to find out from your real estate attorney if you’re responsible for collecting state and city taxes from guests in the same manner as hotels. You may also need a permit to act as a business.
While home sharing is an excellent way to supplement your income, make sure your listing is legal or you run the risk of eviction and other serious penalties. Backed by more than 40 years of experience serving the Bronx, NY, area, Stephen B. Kaufman, P.C. will help minimize your liabilities. Whether you’re buying, selling, sharing, or renting, this skilled real estate attorney will provide you with the guidance you need to protect your interests. Call (718) 822-0500 to request a consultation, or visit him online for more information regarding the services he offers.