By: Joshua Butnick, Esq.
With the emergence of online booking platforms, one such website, Airbnb, has become a very hot-button issue in New York State. Airbnb is a website where private individuals can list their homes or other residential property for nightly rental, like a hotel. Unlike some new services – such as Uber – the State has aggressively sought to restrict Airbnb and other short-term rental booking options.
To its credit, Airbnb has managed to accomplish something no one else has been able to do: unite the Landlord’s lobby, the Tenant’s lobby, and the Hotel Industry against them. The hotel industry fears seeing its profits plummet (with the State fearing losing out on tax revenue). Generally, building owners do not want short term, unvetted renters constantly going in and out of their buildings. This can bring increased crime, noise, and other nuisances which disturb neighbors and the local community. Last, the Tenant’s lobby worries that turning apartments into short-term “hotel rooms” will drive up rents and remove affordable housing units from the market.
In an effort to curb “illegal hotels,” New York State’s Multiple Dwelling Law prohibits rentals of less than 30 days in any building containing three or more “dwelling units” or apartments, where the entire dwelling unit is rented and left vacant for the short-term guests to use. It may be legal, however, to rent a room or bed for less than 30 days in an apartment you continuously occupy and live in. Also, individual houses or two-family homes are exempt from the law. Additionally, as of 2016, it is illegal to simply advertise an illegal short term hotel listing with fines amounting to $1,000 for the first violation, $5,000 for the second violation, and $7,500 for the third.
Even if you think your short-term listing may be legal, there are several other considerations to take into account. First, based on your municipality, you may still be subject to hotel or other taxes on your rental’s revenue (not to mention personal income tax). In addition, there are often heightened safety standards in dwelling units rented on a short term basis.
Finally, and an often overlooked consideration for many utilizing Airbnb, is not the “legality” of the rental, but whether or not it is allowable under your lease agreement with the building owner, if you are also a renter. Almost always, these types of short-term rentals are a violation of your lease, which could subject you to losing the apartment and possibly eviction, even if the rental isn’t technically “illegal.”
This article is written by a member of the Oxman Law Group, PLLC (www.oxmanlaw.com). Any comments or inquiries are welcome and can be directed to Marc Oxman at 914-422-3900 or moxman@oxmanlaw.com.
