Managing Partner
New York City’s Local Law 18, also known as the “Short-Term Rental Registration Law,” has introduced new regulations for short-term rentals that impact residential building owners, co-op and condo boards, and reservation platforms such as Airbnb, VRBO, and Booking.com in the New York Metropolitan Area. Our Real Estate Practice Group at Woods Lonergan would like to provide you with an overview of the law, its implications for these stakeholders, and best practices for staying compliant.
Local Law 18: Key Features and Requirements
Local Law 18 permits owners or renters (hosts) who wish to rent out their residential units for less than 30 days must register with the Mayor’s Office of Special Enforcement (OSE) before doing so. Additionally, qualified building owners, including residential building owners, co-op and condo boards, as well as unit owners can add their buildings to OSE’s “prohibited building list” to prevent short-term rentals. Online reservation platforms such as Airbnb, VRBO, and Booking.com are directly affected by this law, as they are prohibited from authorizing bookings for unregistered short-term rentals.
As per the existing regulations, short-term rentals in Class-A multiple-dwelling buildings are only permitted if the host stays in the same apartment with the guests, accommodating no more than two guests at a time with unrestricted access to all rooms in the apartment.
Registering for the “Prohibited Building List”
As of March 6, 2023, building owners and boards can begin registering for the “prohibited building list.” To do so, visit OSE’s website, and provide the required information, including the applicant’s name, contact details, building address, and proof of the applicant’s relationship with the building owner. Additionally, the applicant must certify that leases and occupancy agreements in the building prohibit short-term rentals. To support the application, co-op, and condo boards should submit a copy of their governing documents that establish the prohibition of short-term rentals in their buildings.
OSE Notifications and Best Practices
OSE will notify building owners and boards of short-term rental applications, enabling them to take preventive action. To avoid disputes, we recommend that building owners, cooperative and condominium boards, or property managers complete the “prohibited building list” application as soon as feasible after registration opens.
Penalties for Non-Compliance
Failure to comply with Local Law 18 and its accompanying rules will result in penalties for both hosts and booking services, including platforms like Airbnb, VRBO, and Booking.com.
Understanding and adhering to Local Law 18 is crucial for residential building owners, co-op, condo boards, and short-term reservation platforms in the New York Metro Area. By following the outlined best practices, these stakeholders can ensure compliance and maintain a harmonious living environment for their residents.
If you have a legal question on this issue or other related matter please Book A Call with our Real Estate Practice Group.
At Woods Lonergan, our real estate attorneys prioritize maintaining a thorough understanding of emerging legal trends in order to provide exceptional representation for our clients within an increasingly regulated environment.
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