Last month, two tenants in New York rented two different apartments in a building managed by DSA property group. Their apps were “rock-solid,” says Arik Lifshitz, CEO of DSA Property Group. Both had good credit and money in the bank. They signed leases, but instead of moving in, the tenants quickly listed both apartments on Airbnb, which the building doesn’t allow.
The new tenants “clearly never intended to live here,” Lifshitz says, even though “the lease and a separate endorsement make it clear that short-term rentals are not permitted.”
When presented with the short-term rental listings, both tenants denied responsibility and refused to leave. One of them went so far as to claim that it was the building that had posted the inscription to take its place. Eventually, she demanded $20,000 to leave, he said. No dice, he said. Now both sides are going to court, and he expects it will take several months and thousands in legal fees to settle the case.
Experiences like this have left Lifshitz jaded with the city’s efforts to curb illegal Airbnbs. It’s an ongoing problem, he says. East NYC flooded with illegal short-term rentals, too much for the city to police. But he is ready to participate in a new effort to block illegal short-term rentals, which will be launched on January 9.
It was then that a new law, Local Law 18, comes into force requiring landlords and tenants to Register their short-term rentals with the Mayor’s Office of Special Execution. Hosts will receive a registration number to display in listings. Sites such as Airbnb, VRBO, Booking.com and others will be prohibited from posting ads for unregistered short-term rentals.
The new law does not change the existing rules for short-term rentals: Landlords or tenants cannot rent an entire apartment for less than 30 days, even if the host owns or lives in the building. Short-term rentals are only allowed if the host stays in the same accommodation as the guests, and no more than two guests are allowed.
Additionally, the new law does not allow short-term tenant or landlord listings in rent-regulated buildings and NYCHA units are not permitted. The law also applies to single-family and two-family homes.
Over 10,000 Airbnb listings for short-term rentals in New York “are likely to disappear” when the new rules take effect, reports the Daily News, citing an estimate of nearly 40,000 total Airbnb listings in the city as of Inside Airbnb, an independent monitoring group.
What is the new check in procedure for short term rentals?
Under the new law, when hosts register with the city, they must confirm that they are the owner or tenant through bank statements or utility bills, and that by offering a short-term rentals, they do not violate the lease or the laws governing short-term rentals or zoning rules.
Landlords will be required to provide extensive information about themselves and the unit, including their identity and address, the full names of everyone who lives there, and a diagram of their property showing which rooms will be used for the rental short term. and where the emergency exits are.
There will be a $145 non-refundable fee to process the request. Hosts and sites that do not comply may be penalized, but penalties will not be imposed until May 9, 2023.
Fines for hosts could reach $5,000 and platforms could face penalties of $1,500.
What is the purpose of these new restrictions for short-term rentals?
These new registration rules “clarify short-term rental laws and establish a simple process for hosts to obtain registration for their lawful rentals, as required by Local Law 18 of 2022,” said Christian Klossner, Executive Director of the Mayor’s Special Office. The execution, in a declaration prior to the New York Post. His office regulates short-term rentals and will oversee the new registration system.
This article includes a response from Airbnb, which called the registration system “draconian and unworkable” and said it “will prevent legal and responsible hosts from listing their homes at a time when families in New York are making in the face of the rising cost of living. Airbnb did not respond to a press request from The Brick at the time of publication.
During a public comment period on the new law, some New Yorkers also complained about a potential loss of income. For example, New Yorkers with low incomes or people with disabilities said home sharing allowed them to Make ends meet, Suspenseful reports.
To Ryan O’Connor, Managing Director of Clinton Management, the property management subsidiary of Douglaston Development, the new registration system creates accountability and clarity.
“The sad truth is that those who suffer the most are small, multi-family buildings where landlords don’t always know that tenants are putting their homes on Airbnb, to the detriment of their neighbors,” O’Connor says.
Some of these short-term rentals are for rent-stabilized housing, where tenants pay below-market rents, he points out.
“I used to manage these appointments; there are no staff on site. These buildings bear the brunt” of this problem, he says. “I suspect many owners and residents will support clarifying who is staying in the building.”
How the new list of prohibited buildings works
Another piece of the law is a new list of buildings that prohibit short-term rentals.
Landlords who notify OSE that short-term rentals are not permitted in their building mean that applications for registration of those buildings will be refused. Similarly, condo and co-op boards can also put their buildings on the prohibited list.
(The list of prohibited buildings is not yet active. The Brick will update this article when the registration process goes live.)
The new listing appears to make it harder for tenants – like those Arik Lifshitz is dealing with – to be able to post illegal short-term listings. For example, if someone submits a short-term request, the OSE will notify the registered building owner, effectively giving owners and boards the option to confirm or block the request.
The OSE should also inform owners and councils of how they can apply to be placed on the prohibited building list.
The origin of the new short-term rental law
The NYC Council passed the bill that created this registration system in late 2021. Former Council Member Ben Kallos was the main sponsor of the bill, which is modeled on similar systems in San Francisco, Chicago, Portland, and Santa Monica.
According to a statement released by Kallos’ office at the time, “[m]More than 37,000 New York listings on Airbnb will need to be registered with the city thanks to the new law.
Kallos pointed to the disconnect between empty New York hotel rooms and the number of listings for entire homes (nearly 20,000), many of which may be illegal and exacerbate the affordable housing crisis, he said. declared.
“Housing should be for New Yorkers. Hotels should be reserved for tourists. We need every apartment illegally listed on Airbnb to be put back on the market to help our affordable housing crisis,” Kallos said.
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