The regulatory landscape for short-term rentals in New York is complex and varies significantly across the state. Understanding these regulations is crucial for anyone looking to operate a short-term rental property legally and profitably.
New York State is implementing a statewide short-term rental registry in 2025 to track data and facilitate tax collection. However, regulations currently vary significantly across different cities and counties. Some locations, like New York City, have very strict rules, while others like Albany are still developing their ordinances.
It is crucial for hosts to check local ordinances in their specific city, town, or county and to seek legal advice to ensure full compliance. These regulations can significantly impact the profitability and legality of short-term rental investments, making due diligence essential before starting a rental business.
Definition of a Short-Term Rental
Understanding how short-term rentals are defined is the first step toward compliance. In New York State:
- For tax purposes, short-term rentals are generally defined as rentals for fewer than 90 consecutive days
- Under Multiple Dwelling Law, a short-term rental is often considered less than 30 consecutive days
- City-specific definitions may exist, often aligning with the 30-day threshold
- Hotels, motels, and bed and breakfasts are generally excluded from short-term rental regulations and have separate regulatory frameworks
Starting a Short-Term Rental Business in New York
If you're considering launching a short-term rental business in New York, follow these essential steps:
- Research local laws and ordinances for the specific city, town, or county where your property is located
- Obtain necessary licenses and permits, which vary by locality (e.g., Short-Term Rental Permit in Rochester, Short-Term Rental License in Buffalo, Registration in NYC)
- Ensure compliance with zoning regulations, as many cities restrict short-term rentals to certain zones or property types
- Meet all safety and occupancy standards, including fire safety equipment, carbon monoxide detectors, and occupancy limits
- Understand and fulfill tax obligations, including sales tax and hotel occupancy tax at both state and local levels
- Secure adequate insurance coverage, particularly liability insurance that covers short-term rental activities
- Designate a local contact person or property manager, especially if you don't live near your rental property
Licensing Requirements
New York State does not have a statewide short-term rental license. Instead, licensing is managed at the local level.
City-specific licensing is common in larger cities like NYC, Buffalo, Rochester, and Niagara Falls. Application processes typically involve submitting forms, proof of ownership, floor plans, insurance details, and safety certifications.
Fees vary by city and license type, ranging from a few hundred dollars for initial applications and renewals. Licenses are typically valid for one year and require annual renewal.
License Renewals
Staying compliant requires keeping your licenses current:
- Renewal frequency is generally annual, with specific deadlines set by each city or county
- Documentation for renewal is usually less extensive than the initial application but may include updated insurance and compliance certifications
- Renewal fees are typically lower than initial license fees
- Failure to renew licenses on time will result in the expiration of the license and illegal operation, potentially leading to fines and penalties
Required Documents
When applying for short-term rental licenses or permits, be prepared to provide:
- Proof of ownership (deed, property tax bill)
- Property information including address, detailed floor plans, and zoning verification
- Owner and operator information, including government-issued IDs, contact details, and proof of primary residence (if owner-occupied license is sought)
- Local contact information for property management or designated representative
- Proof of adequate liability insurance with minimum coverage amounts
- Tax identification numbers (EIN for businesses, SSN for individuals) for tax registration
- Compliance certifications for safety requirements like smoke detectors, carbon monoxide detectors, and fire extinguishers
Taxes
Short-term rental operators must navigate several tax obligations:
- Lodging tax (hotel occupancy tax) is applicable in many cities and counties, ranging from 3% to 6% locally, in addition to state taxes
- Income tax at both state and federal levels applies to short-term rental income
- Property tax implications should be considered, as short-term rentals may affect property tax assessments in some localities
- Tax deductions for eligible expenses such as mortgage interest, insurance, cleaning, maintenance, and platform fees can reduce taxable income
- Hosts are responsible for reporting and remitting sales tax, occupancy tax, and income tax, with procedures varying by tax jurisdiction
While platforms like Airbnb may collect some taxes on behalf of hosts, verification is essential to ensure full compliance.
Statewide Rules
While most regulations are local, some state-level rules apply:
- New York State Multiple Dwelling Law and recent amendments impact short-term rentals, particularly in Class A multiple dwellings in larger cities
- New York State is implementing a statewide short-term rental registry in 2025 to collect data and taxes through booking platforms
- State rules generally allow local jurisdictions significant autonomy in regulating short-term rentals
- Hosts must comply with state safety and health codes, including building and fire codes, in addition to local requirements
Short-Term Rental Laws by City
New York City
NYC has the strictest short-term rental regulations in New York State.
- Definition: Rental for fewer than 30 consecutive days.
- Key Regulations: Entire apartment rentals for less than 30 days are prohibited in Class A multiple dwellings. Hosted rentals (host present) of private rooms are permitted with registration. Strict enforcement and fines for violations.
- Licensing: Mandatory registration with the Mayor's Office of Special Enforcement (OSE) with a $145 application fee.
- Zoning: Strict zoning enforcement against illegal short-term rentals in Class A multiple dwellings.
- Other Rules: Hosts must be present for short-term rentals under 30 days in Class A multiple dwellings. Maximum of two paying guests. Rent-stabilized buildings have additional restrictions. Advertising illegal rentals is prohibited and subject to fines.
- Taxes: 8.875% city sales tax, 5.875% hotel room occupancy tax, plus a hotel unit fee.
Buffalo
Buffalo requires licensing for short-term rentals and differentiates between owner-occupied and non-owner-occupied properties.
- Definition: Rental for any period less than 6 months.
- Licensing: Short-Term Rental License required from the Department of Permits and Inspections Services.
- Owner-occupied: initial fee $400, renewal $200.
- Non-owner occupied: initial fee $1000, renewal $400, plus special use permit
- Zoning: STRs limited to one- and two-family homes, prohibited in apartments and condos.
- Other Regulations: Occupancy limits (2 per bedroom + 2). Parking requirements. Safety inspections. Local property manager required if the owner is outside Erie County. 2-night minimum stay for non-owner occupied STRs.
- Taxes: 3% Erie County occupancy tax, 8.75% combined NYS and Erie County sales tax.
Rochester
Rochester permits short-term rentals only in owner-occupied units and requires annual permits and inspections.
- Licensing: Short Term Rental (STR) Permit from the City of Rochester Zoning Office with an initial fee of $490 and renewal fee of $100.
- Zoning: STR eligibility depends on zoning codes, generally allowed in single-family homes and some multi-family units if owner-occupied.
- Other Regulations: Occupancy limits (2 per bedroom + 2, max 12). Parking requirements. Quiet hours (10pm-7am). Annual inspections. Permit number must be displayed on listings.
- Taxes: 5% occupancy tax to Monroe County Treasurer's Office, plus state and local sales tax.
Albany
Albany's short-term rental regulations are still evolving.
- Licensing: Residential Occupancy Permit required, involving application, Buildings Department inspection, and registry listing.
- Zoning: Compliance checked during the Residential Occupancy Permit process.
- Other Regulations: Regulations are in flux; Residential Occupancy Permits aim to enhance safety and track STR properties.
- Taxes: No city-level hotel occupancy tax currently collected from STRs, but this is under discussion.
Bottom Line
Successfully operating a short-term rental in New York requires diligent attention to local regulations and compliance:
- Local compliance is paramount. New York State has a decentralized regulatory environment for short-term rentals, making city and county ordinances the primary rules to follow.
- Regulations are dynamic. Stay updated with changing local and state regulations, as enforcement and new legislation are increasingly common.
- Consult local government resources and legal experts. Contact city zoning and permitting offices for specific guidance and consider consulting with real estate attorneys specializing in short-term rentals.
The short-term rental market in New York is diverse and regulated. Understanding and adapting to local rules is crucial for successful and legal operation. As the state moves toward implementing a statewide registry in 2025, staying informed about regulatory changes will be more important than ever.
