FEB 2, 2023
Starting your real estate investing journey is an exciting process as a first timer. There are a lot of things to consider before you make the decision to pull the trigger, but let's say you've already made up your mind and know you're committed.
If you're thinking about one of the most popular ways to invest, house-hacking, and you also live in NYC - you've probably considered the idea of hosting your vacant units on a short term rental site such as Airbnb, VRBO, Booking.com, etc.
NYC is notorious for cracking down on short term rental (STR) landlords in a bid to make more apartments available for NYC residents. Continue reading below to understand all the rules BEFORE becoming a STR investor:
As of January 2023, the Short Term Rental Registration Law now requires all STR hosts/landlords to register their units with the Mayor's Office of Special Enforcement (OSE). This is done in a bid to ensure that STR hosts are keeping their properties up to code with NYC's building standards, and may be required to submit architectural plans, lease information, guest information, etc.
Regardless of the number of units, or size of units, hosts are NOT able to rent out an entire place (house, apartment, condo, etc.) to a guest for LESS than 30 days even if the host also lives in the unit.
The only exception to this rule, which allows a rental of less than 30 days, is if the host/landlord is staying in the same unit AND there are no more than 2 guests per booking.
The Mayor's OSE will reject any registration applications for apartments that are already rent regulated and/or under the NYCHA (Section 8 rental voucher holders). Rental registration requests are also denied for applicants that live in buildings which are on a prohibited list (created by owners to prevent STR hosts renting out their spaces). One and two family homes are NOT permitted for STR registrations.
This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.