On January 9th, 2022, New York City adopted Local Law 18, also known as the Short-Term Rental Registration Law. This law requires owners and shareholders (and renters) to register with the Office of Special Enforcement (OSE) before they can rent out part of their unit for less than 30 days. (Short term rentals for entire units are no longer legal in NYC).
So what does this mean for buildings - specifically, boards? Boards need to decide if they want to allow short-term leases in the building - and if not, they should submit their building to the OSE’s prohibited list which will prevent sites like AirBnB and VRBO from listing prohibited rentals on their sites.
Dates to know
March 6 2023: registration with OSE begins
July 2023: OSE begins enforcing LL18
What to do
Steps for Boards:
- Vote: The board decides if they’ll allow short-term rentals - for Daisy board members, the LL18 decision will be on your dashboard to vote on!
- Update rules: Your property manager should review the house rules and governing documents to determine if they need to be updated based on the board’s decision. If the rules do need to be updated - you should communicate this to the building.
- If YES (allow short term rentals):
- If NO:
- There’s nothing else you need to do as a board! (*Residents who wish to host short-term rentals will first need to register with the OSE)
- Your property manager should file for the building to be added to OSE’s prohibited list
Steps for Owners who would like to host:
**Friendly reminder, you can only rent out a portion of your home (ie: a room) for a short period (under 30 days) and must be present during the rental period. This will change the dynamic and experience. It is illegal to rent out an entire unit for less than 30 days.**
- Check your building’s policy- Before trying to rent out your unit on a short term basis, check if your building allows it.
- Register with the OSE- If your building allows for it, you’ll still need to register with the OSE and ensure any other building requirements are being met.
Local Law 18 isn’t the first to address short-term rentals in New York City. The city’s been fighting this issue for a while now, as have many buildings. Short term renters can often disrupt building communities and bring with them an assortment of safety concerns - not to mention legal issues outside of LL18. Many residents run illegal hotels by continuously renting out units on short term bases, which, as you can imagine, leads to unhappy neighbors. According to the city these illegal rentals drive up housing costs while many hotels sit empty. These two factors - mass hotel vacancies and rising housing costs - are where the city is hoping to make the biggest impact. Aside from rental companies and illegal landlords, most folks seem pleased so far.