Can You Still Airbnb Your House in NYC Under Local Law 18?

Local Law 18, New York City's short term rental law, has now generated more than 70 million dollars in cumulative fines since enforcement began. According to a recent report, the first wave of host registrations is also coming up for renewal this month, which puts the rules back in focus for owners of a basement apartment or a 2 family.

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What does Local Law 18 allow for stays under 30 days?

According to a recent report on Local Law 18, a short term rental in NYC means a stay of fewer than 30 days, and the rules are narrow. The host must live in the home, the host must be physically present during the guest's stay, and no more than 2 guests can stay at a time. The host must also register with the city's Office of Special Enforcement before listing, and platforms cannot process bookings for unregistered listings.

Can you Airbnb a basement apartment or separate unit in NYC?

Renting out an entire separate unit on a short term basis while you are not present, such as a basement apartment, is effectively prohibited. It is also the primary activity drawing fines. A host who lives upstairs and rents a spare room while home, with registration in place and no more than 2 guests, is in a different position than an owner who lists the whole basement unit as its own rental.

How much has NYC collected in fines under Local Law 18?

According to a recent report, Local Law 18 has generated more than 70 million dollars in cumulative fines since enforcement began. The first wave of host registrations is also coming up for renewal this month. Enforcement is ongoing, so an owner who is unsure about a listing is better off checking before booking guests than after a violation notice arrives.

Who is actually hosting short term rentals in NYC?

City data shows roughly 76 percent of registered short term rental hosts are homeowners, and most of them rent out 1 and 2 family homes in the outer boroughs, including Staten Island and Brooklyn. Registered hosts are following the host present model, so the rules fall hardest on owners who want to rent a whole unit without living there during the stay.

What is the alternative to a short term rental for a basement unit or 2 family?

Rentals of 30 consecutive days or longer are not short term rentals under the law. They fall under ordinary landlord and tenant rules, with no registration requirement and no host present requirement. A standard longer term lease usually brings lower turnover and fewer moving parts, although it also means a tenant has legal protections and the owner gives up the flexibility of nightly pricing. This is general information, not legal advice, and the NYC Office of Special Enforcement can answer questions about a specific property.

What does this mean for Staten Island and Brooklyn homeowners?

Staten Island and Brooklyn have many 1 and 2 family homes and finished basements, which is the housing stock most affected by Local Law 18. Owners who are weighing a basement apartment or the second unit of a 2 family can compare 2 paths: a registered, host present stay of fewer than 30 days with a cap of 2 guests, or a lease of 30 days or longer. Because the fines are significant, checking directly with the Office of Special Enforcement before listing is the safest first step.

Questions about how this affects your home in Staten Island or Brooklyn? Work with Joseph Ranola, or text or call (917) 905-2541. New episodes of Daily Tesla News break down the NYC real estate stories that move the market.