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Airbnb Rules in NYC 2023: The new restrictive regulation for short-term rentals

Last updated on January 10th, 2024

NYC started enforcing new and highly restrictive Airbnb rules this 2023. Find out what are these restrictions and what they mean in this article!

Airbnb Rules in NYC 2023: The new restrictive regulation for short-term rentals

Airbnb Rules NYC 2023

Airbnb Rules in NYC 2023: The new restrictive regulation for short-term rentals

NYC started enforcing new and highly restrictive Airbnb rules this 2023. Find out what are these restrictions and what they mean in this article!

Airbnb Rules in NYC 2023: the end of short-term rentals in the Big Apple?

Operating a short-term rental property in NYC used to be a dream for many investors. The city provided golden investment opportunities that allowed them not only to own a house in the exciting Big Apple but also the chance to generate a positive cash flow by listing them on platforms like Airbnb and VRBO.

Unfortunately, NYC began enforcing new strict Airbnb rules on September 5, 2023, which means that the city is moving forward with banning short-term rentals. While STR properties are still allowed in NYC, the new laws limit how Airbnb operates in the city, making it difficult not only for hosts but also for guests. 

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“New York City’s new short-term rental rules are a blow to its tourism economy. The city is sending a clear message to millions of potential visitors who will now have fewer accommodation options when they visit New York City: You are not welcome”.

– Theo Yedinsky, Airbinb’s global policy director.

But truth be told, NYC registered more than 10,000 illegal short-term listings operating within the city listings in recent years. For this and many other reasons, the city reinforced the regulations, thus, these listings will be affected or in other words, removed. 

If you want to know more about the NYC short-term rental law, keep reading as we dive deeper into the new restrictions and how they affect Airbnb hosts and guests alike!

New Airbnb Rules in New York City

As of September 5th, NYC began the enforcement of regulations requiring that all eligible hosts of short-term rentals must either be registered with the city or possess Class B status to continue offering holiday accommodations.

Yet, it must be noted that NYC adopted Local Law 18 on January 9, 2022. This law mandates that short-term rental hosts must register with the Mayor’s Office of Special Enforcement (OSE). At the same time, it prohibits booking service platforms (Airbnb, VRBO, Booking.com, etc.) from processing transactions for unregistered STR listings. The Local 18 Law applies only to listings that are rented for less than 30 days.

Requirements to comply with the rules:
  • Register with the Mayor’s Office of Special Enforcement (OSE).
  • Hosts that meet the requirements for short-term rentals, can apply for registration via the STRR portal. The application fee is $145.
  • They must provide the following information:
    • Full legal name, current phone number. 
    • The applicant must inform if they are the tenant or owner of the dwelling unit.
    • The STR property’s physical address where short-term rental, including street number, street name, zip code, borough, and unit number where there is more than one dwelling unit in the building.
    • An email address that will be used to receive communication from the administering agency.
    • Type of dwelling unit (e.g., single-family building, apartment in a two-family building, etc).
    • The number of individuals not related by blood, adoption, legal guardianship, marriage or domestic partnership that reside with the registrant in the unit.
    • The uniform resource locator or listing identifier and the associated booking service name for all existing listings of the dwelling unit.
  • Applicant must also provide a copy of the following documents:
    • Driver’s license or State-issued ID;
    • U.S. Passport or U.S. Passport card;
    • U.S. Military ID;
    • Permanent Resident Card or Employment Authorization card issued by the United States Government;
    • A foreign passport or driver’s license;
    • IDNYC card; or
    • Other forms of proof that the administering agency determines are acceptable
  • Registrations should be renewed on the online registration portal accessible through the administering agency’s website. Renewals will be accepted beginning 180 days before the expiration of a host’s current registration.
  • Booking platforms (Airbnb, Vrbo, etc.) are required to ensure that all users on their platforms in New York adhere to the city’s regulations.

If the application is approved, the department will issue a registration number that must appear on the host’s online listing.

Some of the restrictions include:
  • Registered hosts are not allowed to give the rentee exclusive access to the rented unit. A short-term rental can only be rented if the host is physically present in the property. 
  • The STR cannot have more than two paying guests and they must have access to the entire unit.
  • The OSE maintains a Prohibited Building List, where short-term rentals are prohibited, either due to legal restrictions (e.g. NYCHA or entire rent-regulated buildings) or because of specific lease and occupancy agreements within a building. You can check if an address is already included on the Prohibited Building List here.

Hosts that do not abide by the new legislation will face fines that go up to $5,000. Moreover, platforms could face fines of up to $1,500 for transactions involving illegal rentals.

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“Registration creates a clear path for hosts who follow the city’s longstanding laws and protects travelers from illegal and unsafe accommodations while ending the proliferation of illegal short-term rentals.” 

– Christian Klossner, executive director of the city’s OSE

Airbnb also presented the alternative to switching from short-term rentals to long-term stays by updating the minimum night stay to 30 nights or more.

Adapting to Strict Short-Term Rental Rules: The Impact on NYC’s Airbnb Landscape

With the new regulations and restrictions for short-term rentals in NYC, many Airbnb listings will be removed and the occupancy rates may also drop since few travelers will be comfortable with the fact that they must share the booking with the owner. And while booking hotel rooms is also an option, it’s not always affordable for budget overnight visitors.

On top of that, we should consider that if there is a decrease in lodging options, hotel prices may continue to rise.

Moreover, hosts have expressed their opposition to the strict enforcement measures since it may negatively impact families who are trying to supplement their income by renting out their residences.

Shifting to Neighboring States: NJ as a Top Choice!

Thus, many travelers have been shifting from NYC to nearby areas, such as cities located in New Jersey, to book their Airbnb and have a more peaceful stay. Investors may look in a positive light on Airbnb markets in NJ, but they also should note that each municipality has its own Airbnb regulations.

While the panorama of Airbnb continues to change in cities like NYC, investors may opt to do a strategic shift and navigate other profitable locations to minimize potential challenges. This is where advanced STR analytics tools like Airbtics proved invaluable, simplifying the arduous process of identifying top rental markets!

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