Does NYC allow short-term rentals?
The short-term rental situation in New York City has been a tangled and changing issue for years. As platforms like Airbnb and VRBO took off, it was natural to ask if short-term rentals were permitted in the city—and if so, under what circumstances. In 2025, new laws and regulations have reshaped the landscape, aiming to balance housing supply, safety, and tax fairness. This blog discusses the current status of short-term rental legality in NYC, what you should know as a host or guest, and how new regulations affect the market.
According to Sparkly Maid NYC, as of 2025, the average rent in New York City is approximately $3,972 per month, marking a 2.1% increase from the previous year. With such high prices, many New Yorkers and visitors seek flexible accommodations, but the city enforces strict restrictions on short-term rentals, especially in residential buildings. Here's what is permitted, what isn't, and what the new laws mean.
What Are Short-Term Rentals in NYC?
In New York City, a short-term rental (STR) refers to renting out a dwelling or part of one for less than 30 consecutive days. This could include entire apartments, single rooms, or shared spaces. The city differentiates building types:
Class A multiple dwellings: Residential buildings with three or more permanent units, where short-term rentals of whole units are typically banned.
Class B multiple dwellings: Hotels, boarding houses, and similar spaces that permit short-term stays.
Existing Legal Framework for Short-Term Rentals
Owner-Occupied Rentals Only
In NYC, renting out a whole apartment or home on a short-term basis is illegal unless the owner or permanent occupant is present during the guest’s stay. This means:
Hosts must remain on-site.
No more than two paying guests are allowed at a time.
Guests must have full access to all areas and exits.
Internal doors cannot be locked in a way that restricts emergency access.
These rules effectively ban short-term rentals in most residential buildings unless they’re owner-occupied.
Registration and Compliance
Since 2023, NYC requires hosts to register their rentals with the city. Platforms like Airbnb and VRBO cannot list unregistered properties.
Fines for Illegal Rentals
Violators face fines between $1,000 and $7,500 per offense. The city actively enforces these rules to preserve housing and ensure safety.
New Statewide Short-Term Rental Registry Law (2025)
In late 2024, New York passed a statewide law that took effect in 2025. It created a short-term rental registry and new tax obligations across the state, including NYC.
Key elements:
Registration: Anyone offering short-term stays (under 30 days) must register with the state or local authority.
Taxation: STRs are now taxed like hotels. Platforms must collect and remit sales and occupancy taxes.
Data Reporting: Airbnb, VRBO, and others must report rental data quarterly.
Local Control: Cities and counties can create their own registries and even ban or limit STRs.
This law aims to increase transparency, level the playing field with hotels, and provide better data for housing policy.
Why Are Short-Term Rentals So Regulated in NYC?
NYC’s tight regulations are based on several concerns:
Housing Availability: STRs reduce long-term housing stock and drive up rents.
Safety: Unlicensed rentals may violate fire and building codes.
Neighborhood Impact: Constant guest turnover can disrupt residential communities.
Tax Fairness: Hotels pay taxes—many STRs didn’t.
The new laws aim to address these concerns while allowing some flexibility for live-in hosts.
What Does This Mean for Renters and Hosts?
For Renters
If you’re visiting NYC short-term:
You’ll mostly find owner-occupied rentals or hotels.
Ensure the listing is legally registered.
Illegal rentals may be shut down, risking cancellations or safety issues.
For Hosts
If you want to rent out your home:
You must be a full-time resident who stays during guest visits.
Register your unit and follow all tax and safety laws.
Most residential units cannot be rented short-term unless owner-occupied.
Be ready for increased regulation and tax reporting.
Useful Tips for Hosting and Relocating
Hosting legally requires planning and care. Cleanliness matters—booking a one time cleaning before guests arrive helps create a great impression.
If you’re moving in or out of NYC, consider hiring a moving company. If relocating from a different city, like Austin, using a Austin cleaning service can prep your old space for handover.
Environmental and Cleaning Considerations
With growing environmental awareness, many guests and hosts prefer green cleaning. A Green Cleaning Service offers eco-friendly, thorough cleaning—ideal for short-term rentals with frequent turnover. Scheduling a one-time clean before or after a stay keeps the property fresh and guest-ready.
So, does NYC allow short-term rentals? The answer is nuanced. Non-owner occupied short-term rentals are generally prohibited in most residential buildings. However, owner-occupied rentals are allowed under strict rules. In 2025, new state laws have added registration, taxation, and data transparency requirements.
Whether you’re renting or hosting, understanding and complying with these regulations is essential. Stay informed and play by the rules to ensure a safe and successful short-term rental experience in NYC.
