Rental use is one of the biggest drivers of interest in ADUs, and also one of the most misunderstood. While City of Yes may allow ADUs under zoning, rental rules are governed by a combination of zoning, building code and existing NYC housing laws.

Zoning permission does not override rental restrictions.

Long Term Rentals vs Short Term Rentals

Under current NYC law:

• Long term rentals are generally permitted if the ADU is legal and compliant.

• Short term rentals, such as Airbnb style use, are heavily restricted citywide.

• NYC requires registration, host presence and strict rules that ADUs often cannot meet.

Most ADUs are effectively limited to long term residential use.

Owner Occupancy and Compliance Questions

Depending on final City of Yes implementation:

• Some ADUs may require owner occupancy on the primary lot.

• Rental use must comply with housing maintenance code.

• Illegal conversions or unregistered units remain violations.

• Fire safety, egress and habitability rules still apply to tenants.

Why This Matters in Staten Island and Brooklyn

Many homeowners assume ADUs create unrestricted rental income. That assumption is risky. Rental restrictions, tenant protections and enforcement remain in place. Building an ADU without understanding how it can legally be rented can destroy projected returns.

ADUs are housing units, not loopholes.

—

Joseph Ranola | Five-Star Staten Island & South Brooklyn Realtor® (30 + Google reviews)
Associate Broker · Matias Real Estate | Founder · Bridge & Boro Team
Serving 103xx and 11209 / 11214 / 11228 | $25 M + closed volume
📞 917-716-1496 | ranolarealestate.com