New York Airbnb and Short Term Rental Regulations

New York is a popular location for Airbnb investments due to its many tourist attractions, including the most visited city in the US. However, the state has imposed severe restrictions on short term rentals, making it one of the most restrictive markets for vacation rentals in the country. Despite this, there are still opportunities for profitable Airbnb investments in New York, but it's important for investors to familiarize themselves with the state's laws and regulations.

If you're interested in turning your property into a short-term rental, but you're not sure if it's legal under Airbnb regulations, Awning can help. As a nationwide property management company, we are well-versed in the laws and regulations surrounding short-term rentals. Contact an Awning agent today and let us help you determine if your property qualifies. Call or text 415-941-5206

New York State's Definition of a Short Term Rental

New York State defines short-term rentals as the renting of dwellings for less than 30 consecutive days. However, for tax purposes they are defined as stays of fewer than 90 consecutive days.

The primary law which regulates New York short-term rentals at the state level is the New York State Multiple Dwelling Law. This law distinguishes between two main types of multiple dwelling types:

• "Class A" multiple dwelling includes tenements, flat houses, maisonette apartments, apartment houses, apartment hotels, bachelor apartments, studio apartments, duplex apartments, kitchenette apartments, and all other multiple dwellings except "Class B" (defined below), which basically means all residential multifamily buildings. "Class A" multiple dwellings are allocated for permanent residence only, which refers to occupancy of 30 consecutive days or more. Short-term rentals are prohibited.
• "Class B" multiple dwelling includes hotels, lodging houses, rooming houses, boarding houses, boarding schools, furnished room houses, lodgings, and other dwellings designed as private dwellings but occupied by one or two families with five or more transient boarders, roomers, or lodgers in one household. "Class B" multiple dwellings are occupied transiently, as temporary lodging with or without meals.

The Multiple Dwelling Law basically means that New York short-term rentals in residential multifamily buildings - "Class A" are not allowed. However, it might be possible to rent out a room within such a dwelling if the permanent resident is present throughout the stay and paying guests have access to all rooms in the apartment. Owner-occupied short-term rentals might be an option.

Major Statewide Changes in 2024-2025

New York State made significant changes to short-term rental regulations that affect all hosts across the state. On December 21, 2024, Governor Hochul signed legislation creating the nation's first statewide short-term rental framework. A chapter amendment in February 2025 finalized the requirements.

Starting March 25, 2025, all short-term rental platforms like Airbnb and VRBO must:

• Collect and remit the 4% state sales tax plus local sales taxes
• Report quarterly to New York State with complete rental location lists
• Share data about all rentals and taxes collected

Counties now have the option to create county-wide short-term rental registries. If your county opts in, you will need to register at the county level to collect occupancy taxes. This is in addition to any city or town requirements already in place.

Starting a Short Term Rental Business in New York State

Starting a New York Airbnb business does not require any specific procedures at the state level as short-term rental licenses and permits are issued at the city/town level. So, all that future Airbnb hosts need to do is to follow through the standard procedures for starting a business in New York State. The good news is that New York is open for businesses and has established a straightforward process for getting started.

The steps include:

• Forming an entity. You don't need to set up an LLC in order to operate a vacation rental in New York State.
• Getting a Federal Tax ID, also known as an Employer Identification Number (EIN). This is done on the IRS website.
• Registering as a New York State Sales Vendor by applying for a sales tax Certificate of Authority at the NYS Department of Taxation and Finance.
• Setting up a NY.Gov ID.

Short Term Rental Licensing Requirement in New York State

New York does not have statewide requirements for short-term rental licenses and permits at this time. This is like the regulations in most other US states, like the California, Colorado, and Hawaii short-term rental laws, to name a few. A major exception to this general rule are the Florida short-term rental laws, where a license needs to be obtained from the state authorities.

Like most states, New York has left the regulation of the vacation rental industry to local county and city authorities. As a result, to counteract the negative impact of the extreme growth of the Airbnb New York industry on housing availability and affordability and on communities' safety and lifestyle, most cities and towns across the Empire State have enacted strict requirements for licensing vacation rentals.

However, with the new statewide tax collection requirements starting March 25, 2025, all hosts will need to ensure their platforms are properly collecting and remitting taxes, even if no local license is required.

Required Documents for New York State Short Term Rentals

Short-term rental property owners in New York State do not need any special documents when setting up their business at the state level. The documentation they require is related to forming a legal entity, getting an EIN, and getting a state sales tax license. The needed documents vary depending on the type of legal entity, so investors need to check the requirements for their chosen business model.

In addition, they will need various documents in order to apply for a short-term rental license or permit in their city. The necessary documents are different by city but include an application form, proof of ownership/permanent residence, site plan, floor plan, proof of safety regulations compliance, contact person information, and others.

New York State Short Term Rental Taxes

Operating an Airbnb New York rental business requires paying several different taxes. These include:

• New York State sales tax at a rate of 4%
• Local sales tax
• Local lodging/hotel/occupancy tax

The local taxes vary by county and the city. Importantly, for tax purposes NY short-term rentals are considered those rented out for less than 90 consecutive days.

Starting March 25, 2025, vacation rental listing platforms like Airbnb and Vrbo will be required to collect and remit both state and local sales taxes on behalf of hosts. However, local occupancy taxes may still need to be handled separately depending on your county's regulations.

New York Vacation Rental Tax Deductions

Per federal regulations, if you rent out a second home for 14 or more days in a calendar year and use it for personal reasons for 14 or fewer days in a calendar year, you qualify for tax deductions.

In specific, you can claim the following short-term rental tax deductions:

• Mortgage interest
• Mortgage insurance premium
• Property tax and other taxes
• Depreciation
• Property maintenance
• Utilities
• Guest supplies
• Cleaning, accounting, legal, and other business services
• Costs for travel related to running your rental business
• Home office expenses

It's important to take advantage of all available tax benefits because this helps you enhance your cash flow and maximize your Airbnb cap rates.

Statewide Short Term Rental Rules in New York State

According to the New York State Multiple Dwelling Law, short-term rentals are illegal in "Class A" multiple dwellings, which includes virtually all residential multifamily buildings. Some exceptions like owner-occupied rentals of part of a property might be workable, as long as guests have access to all rooms in the dwelling and there are no internal door locks.

Airbnb rentals are legal in "Class B" multiple dwellings, which include hotels and other temporary residence buildings.

Although New York cities and towns have enacted their own regulations to curtail the further negative effect of the short-term rental industry, these statewide laws have to be applied in all locations across NYS.

Short Term Rental Rules By New York State City

Besides the statewide rules, most New York cities and towns have introduced their own short-term rental laws by city in order to take into consideration the local housing market and community needs and interests. Overall, cities across New York State have restrictive regulations, similar to the California short-term rental laws.

1. New York City, New York Short Term Rental Laws

New York City Administrative Code defines a short-term rental as a rental of a dwelling unit or a part of it or housing accommodations within a building for occupancy of fewer than 30 consecutive days. As per the New York State Multiple Dwelling Law, renting out an apartment in a "Class A" multiple dwelling, which refers to a building with three or more permanent residential units, is not allowed for less than 30 consecutive days.

In NYC it is prohibited to rent out an entire apartment or home on a short-term basis, so non-owner occupied short-term rentals are not workable. Hosts must be present throughout short term guest stays and can host only two paying guests at a time. Every guest needs to have free, unobstructed access to every room and every exit within the apartment. Internal doors cannot have key locks as they can create barriers in case of emergency.

New York City short-term rental properties need to be maintained in a safe and code-compliant condition.

The Short Term Rental Registration Law went into effect with full enforcement beginning September 5, 2023. According to the law, vacation rental hosts need to register with the City, and short-term rental platforms like Airbnb cannot process transactions unless the registration information matches the City database. This does not apply to "Class B" multiple dwellings and "Class B" multiple dwellings units within mixed-use buildings.

Being issued a short-term rental registration or renewal requires:

• The applicant to be a natural person who is a permanent occupant and is the owner or a tenant who certifies that the lease agreement does not prohibit applying for a short-term rental registration.
• The applicant to describe the units that short-term occupants will be allowed to occupy.
• The applicant certifies that they understand and agree to comply with applicable codes, resolutions, laws, and other legal requirements.
• The administering agency determines that occupants of the dwelling unit will not be endangered.
• The administering agency to verify the occupancy classification of the building or the unit.
• The administering agency verifies that the building does not appear on the prohibited buildings list.
• The applicant provides booking service information for all listings on a booking service.
• Payment of application fee of $145.

As of January 2024, only about 22% of registration applications have been approved, with 16% rejected and 53% returned for additional information. The number of Airbnb listings in NYC dropped by 70% since enforcement began, from around 40,000 to under 3,000 legal listings.

Illegal operations of New York City short term rentals will face fines from $1,000 to $5,000, with repeat violations reaching $7,500.

Besides state sales tax, NYC hosts have to pay 5.875% City hotel room occupancy tax, $1.50 per unit per day City hotel unit fee, and 8.875% City sales tax.

In November 2024, city council members introduced Bill No. 1107 that would allow owners of one and two family homes to rent without being present, accommodate up to four adults plus children, and have locks on bedroom doors. This bill is still pending as of this update.

Considering the existing New York short-term rental laws, the Big Apple is not a good market for buying a vacation rental property. Although demand is guaranteed to be high because of the large number of tourists visiting NYC each year, non-owner occupied short-term rentals are not allowed.

2. Lake Placid, New York Short Term Rental Laws

The Village of Lake Placid and the Town of North Elba share the same short-term rental laws and regulations. The two entities define a short-term rental as a dwelling unit rented in whole or in part for less than 30 consecutive nights. This includes any residential building, apartment, single family dwelling, two family dwelling, condo, townhouse, guest house, cottage, cabin, or accessory dwelling as well as rooming house and boarding house but excludes timeshares.

According to the Lake Placid short-term rental laws, starting an Airbnb business requires a short-term rental permit.

Applying for a permit requires:

• Information about all property owners.
• Signed and notarized affidavit by the property owner(s) certifying compliance with requirements related to smoke detectors, fire extinguishers, a carbon monoxide detector, exterior doors, electrical systems, fireplaces, and others.
• Statement of the number of rooms meeting standards.
• Statement of the number of parking spaces meeting standards.
• Site plan.
• Septic inspection report issued and dated within 90 days if the property is served by a private septic system.
• Contact person's information who is to be within 60 minutes by car for the town or 30 minutes for the village and be available 24/7.
• House number visible from the street.
• Provisions made for weekly garbage removal.
• Bedrooms being at least 70 square feet in size.
• Applicant statement that they comply with all standards and regulations.
• Registration with the Occupancy Tax Program administered by the Essex County Treasurer's Office.
• Permit fee. Owner-occupied short-term rentals rented out for up to 14 days in a calendar year are exempt from paying this.

They can issue only one permit per property, so if a property has over one dwelling unit, they can permit only one of them for use as a short-term rental property. Permits are valid for two years and are not transferable to new property owners.

As of January 2023, Lake Placid and North Elba passed new regulations prohibiting new unhosted short-term rental permits in residential neighborhoods. Hosted short-term rentals, where the host is on site, are still allowed anywhere in the town and village. The previous 90-day and 120-day rental limits have been removed.

Failure to adhere to vacation rental regulations in Lake Placid will cause a fine of $350-$1,000, while a second offense will be subject to a fine of $1,000-$3,000.

In December 2024, a new moratorium request was submitted to study the impact of short-term rentals through 2025.

The local occupancy tax equals 5%, while the Lake Placid sales tax amounts to 8%.

The situation with Airbnb Lake Placid remains dynamic, and new changes can be expected to take place. Thus, investors should monitor the most up-to-date Airbnb laws and regulations before buying a vacation rental property in this part of New York State.

3. Albany, New York Short Term Rental Laws

There are no Albany short-term rental laws at the city level. This means that the rules available regulate Airbnb Albany rental properties at the New York State level.

Albany County does not collect a hotel occupancy tax from short-term rental property owners or online marketplaces. There has been discussion among the local authorities to collect this tax for the economic benefits.

Before deciding on buying an Albany vacation rental, we advise investors to check for new laws. Cities across New York State are reviewing existing short-term rental laws and introducing new ones in response to the impact of the quickly spreading Airbnb industry.

4. Rochester, New York Short Term Rental Laws

The City of Rochester in New York State has enacted local regulations for short-term rentals. Airbnb properties need to comply with both city and statewide laws and codes.

Rochester requires:

• Owner-occupied units only - investor-owned or secondary homes are prohibited
• Annual permit required with renewal fees
• Maximum 90 rental days per year
• Maximum occupancy of 2 persons per bedroom, not exceeding 6 total occupants
• Onsite parking limited to the number of legal bedrooms
• Safety requirements including smoke detectors, fire extinguishers, and CO detectors
• Display of permit number on all listings

Violations can result in permit revocation and fines up to $10,000.

In terms of taxes, Rochester short-term rental property owners need to pay a 6% hotel room occupancy tax to Monroe County besides an 8% sales tax: 4% to New York State and 4% to Monroe County.

Due to the owner-occupied requirement and 90-day limit, Rochester is a limited market for vacation rental investments.

5. Buffalo, New York Short Term Rental Laws

The City of Buffalo Common Council enacted a new shared housing ordinance in October 2019, which regulates short-term rentals. According to the ordinance, property owners have to register at the Department of Permits and Inspection Services through a business license application.

The City of Buffalo differentiates between two types of short-term rentals:

Owner occupied short-term rental: This refers to both single and multifamily properties outside the N-4-30 and N-4-50 zones. They prohibit short-term rentals in apartment buildings and townhouse condos whose HOAs prevent this.

As of March 2024, the following fees apply:

• $25 or $50 per year for joining the registry
• $500 for initial application (increased from $150)
• $200 annual renewal (increased from $75)
• $75 for property inspection

Non-owner occupied short-term rental: They face more regulations in the N-4-30 and N-4-50 zones, and a special permit is required for properties in the N-2R and N-3R zones.

As of March 2024, the following fees apply:

• $25 or $50 per year for joining the registry
• $1,000 for initial application (increased from $250)
• $400 annual renewal (increased from $150)
• $75 for property inspection

Buffalo short term rentals in the N-4-30 and N-4-50 - comprising single family residential homes - zones are not entirely prohibited, they require a zoning variance which means a public hearing and input from the community.

Submitting a business license application for an Airbnb property in Buffalo requires:

• Government-issued photo ID
• Two pieces of mail showing residency
• Exit plan
• Application form
• License affidavit
• Signed Council Notification form
• Short-term rental dwelling information
• Owner's information
• Agent's information
• Second local contact person's information
• Presence of safety items
• Application or renewal fee

Buffalo short-term rental property owners need to pay a 3% Erie County hotel tax and a 8.75% sales tax combining the New York State rate and the Erie County rate.

The city is considering further restrictions that would limit STRs to commercial zones and main streets only. Operating a vacation rental in Buffalo is workable, but it faces zoning restrictions. Before buying an investment property to rent out on a short-term basis, investors need to check the zoning regulations of the property's exact location.

6. Syracuse, New York Short Term Rental Laws

Syracuse requires short-term rental hosts to register their properties and maintain compliance with city regulations. The requirements include:

• Property registration every 3 years
• Registration fee of $150
• Must pass rental inspection
• Compliance with safety regulations and appropriate insurance
• Collection and remittance of occupancy taxes

Onondaga County, where Syracuse is located, increased the room occupancy tax from 5% to 7%. Violations can result in civil penalties of $100 per day.

7. Niagara Falls, New York Short Term Rental Laws

Niagara Falls passed an ordinance in December 2019 legalizing and regulating short-term rentals. Property owners must obtain a special permit from the city's Department of Code Enforcement.

Requirements include:

• Special permit and annual STR license required
• Fees: $250 for single-family units, $400 for two-unit properties
• Annual renewal required
• Must complete Destination Niagara USA's "EXP Program"
• Insurance with minimum $1,000,000 coverage
• Distinction between owner-occupied and non-owner occupied rentals
• 24/7 complaint hotline: 716-402-7806

Hosts must collect and remit the 4% Niagara County bed tax on all short-term rental stays.

8. Saratoga Springs, New York Short Term Rental Laws

Saratoga Springs passed comprehensive short-term rental regulations in December 2024 with Local Law No. 5 of 2024.

Key requirements:

• $1,000 registration fee for 2-year permit
• Insurance requirements aligned with state standards
• Contact person must be within 50 miles
• Licenses are not transferable
• No septic inspection required, but notification about septic and parking restrictions required
• Fines up to $2,500 for first violation
• License revocation after 3 violations in 2 years
• 5% occupancy tax applies

The city initially considered limiting rentals to owner-occupied properties but removed this requirement in the final version.

9. Long Island and Hamptons Short Term Rental Laws

Long Island regulations vary significantly by town and county. There are no uniform Nassau or Suffolk County regulations, but each town has its own rules.

Suffolk County:

• 5.5% occupancy tax on rentals under 30 days (increased from 3% in June 2023)
• Quarterly tax remittance required
• Penalties: 5% plus 1% monthly interest for late payments

Town-specific rules include:

• East Hampton: Maximum 15 days per year, registration required
• Southampton: Various restrictions on rentals under 30 days
• Southold: 14-night minimum stay, 60-day annual cap
• Brookhaven: Considering ban on rentals under 28 days except owner-occupied
• Shelter Island: 14-night minimum (currently under legal challenge)

Nassau County:

• No county-wide regulations
• 3-5% occupancy tax depending on town
• Towns have varying permit requirements
• Fines can reach $10,000 for violations

Before listing a property on Long Island, check with your specific town for current regulations as they change frequently.

Takeaway

New York State looks like the ideal location for starting a vacation rental business. The state attracts millions of tourists and other visitors every year, and many prefer to stay in comfortable and affordable Airbnbs rather than traditional hotels. However, New York State short-term rental laws by city are some of the strictest and most restrictive nationwide.

With the new statewide tax collection requirements starting March 25, 2025, compliance is becoming even more important. Most major cities now require owner-occupied rentals only, and NYC has effectively banned most short-term rentals. Thus, investors need to study the local regulations carefully before buying a vacation rental in any of NY cities or towns.

If you're interested in turning your property into a short-term rental, but you're not sure if it's legal under Airbnb regulations, Awning can help. As a nationwide property management company, we are well-versed in the laws and regulations surrounding short-term rentals. Contact an Awning agent today and let us help you determine if your property qualifies. Call or text 415-941-5206.