Understanding the Rules of Short Term Rentals in New York City

In New York City, the rules regarding the collection of rent for short term rentals have experienced some significant changes in recent years. This shift in law has important implications for landlords, property owners, and real estate brokers alike.

Tenant Protection Law of 2019

The Tenant Protection Law of 2019, also known as the “Housing Stability and Tenant Protection Act” (HSTPA), fundamentally changed the rules around rent collection at the commencement of a residential lease. It is now considered a violation of this law for a landlord to collect more than the first month’s rent and a one-month security deposit at the lease’s start. This change significantly departs from previous practices where landlords often collected the entire rent upfront for short term or seasonal leases.

2021 Amendment for Seasonal Properties

The HSTPA was amended in 2021 to allow owners of seasonal properties who rent their homes for 120 days or less to collect the entire rent up front. However, this exception comes with strict conditions:

1. The property can only be rented for 120 days of the year. This means a property owner cannot use this exception more than once in a year.
2. The local government of the property’s location must maintain a registry (the “Registry”) of such seasonal homes.
3. The property in question must be duly registered in the Registry.

It’s important to note that New York City does not maintain a Registry. As such, property owners in New York City cannot utilize this exception and can only collect the first month’s rent and a one-month security deposit at the start of a short term lease.

Exceptions and Important Tip

Some municipalities in Suffolk County, such as the Town of Southold and the Village of East Hampton, currently maintain a Registry. In locations without a Registry, landlords may not collect more than the first month’s rent and a security deposit equivalent to one month’s rent.

As a real estate broker or landlord, understanding these regulations is crucial to stay compliant and avoid potential legal issues. Always make sure to consult with a legal expert or local real estate attorney to ensure all rental agreements are in line with the current laws.

For more information, check out the New York State Legislature and the Tenant Protection Law of 2019.

Infographic on Short Term Rental Rules in New York

Sydney Harewood.Lrsp, LEVEL. 5 West 37th Street | New York, NY 10018 | Tel: 646-535-3819