NYC Begins Strictly Enforcing Regulations on Short-term Rentals
NYC Mayor Eric Adams’ administration recently filed a lawsuit against one of the largest illegal short-term rental operations in recent history. The suit alleges that Apex East Management and Arron Latimer illegally housed thousands of individuals in properties listed on multiple Airbnb accounts over the past decade, allegedly drawing in around $2 million dollars. Additionally, the City claims that they also failed to provide adequate safety measures such as sprinklers and exits from the building. Adams has also said that operations such as these have dramatically damaged the already fragile real estate market in NYC by taking away potential housing for NY residents and instead reserving them for tourists and visitors. Gale Brewer, a NYC Councilwoman, has also stated, “If you are coming to New York, stay in a hotel. Stay in a place that is legal. Don’t go to a place that’s not legal” in response to the City’s claims of the danger that these Airbnb units pose to both their tenants and those around them.
The law regarding short-term rentals in NYC currently precludes renting out property to individuals for less than 30 days unless the owner of the property also stays on the property with the tenant for the allotted time. In order to make it easier for the City to keep track of these short-term rental units, a law was passed recently that would require owners to register their properties with the city which will go into affect in January, 2023. Furthermore, owners and renters of government subsidized/publicly owned properties, or affordable housing will not be eligible to register those properties for short-term rentals. Failure to register the property or follow other regulations regarding short term rentals could land a hefty fine of either $5,000 or 3x the revenue earned by the rental for each offense.
Questions on how this might affect you? Give us a call today at: (718)-554-6445 for a FREE consultation!
Sources: https://nypost.com/2022/07/12/mayor-adams-suing-operators-of-illegal-hotel-that-posed-as-airbnb-in-midtown/
https://www.avalara.com/mylodgetax/en/blog/2022/03/new-york-city-to-require-short-term-rentals-to-register.html