New Bill Introduced To Regulate New York City Vacation Rentals (as Opposed to Banning them)
A new bill was recently introduced by Senator Martin J. Golden intended to amend the yet to be implemented short-term rental ban in New York City.
The purpose of the bill “is to provide an exemption for a specific class of good actors that rent certain class A multiple dwelling units on a short-term basis.” [1]
As long as the “class A” multiple dwelling unit (i) is not a single room occupancy, (ii) contains a bathroom and kitchen, (iii) has working smoke detectors located in each room and (iv) the unit has sufficient fire, hazard and liability insurance to cover those persons using the unit for such occupancy, the unit could be lawfully rented for less than thirty days.
The accompanying memo further provides: “Last year’s law was written to encompass a greater universe than was intended. While it successfully phases out SROs [Single Room Occupancy Buildings], it also is ridding New York State of a legitimate business model: short-term rental units. These short-term units provide tax income to New York and tourism dollars to the areas in which they are located. They should not be confused with the small single room living spaces that are SROs, which often get associated with decrepitude, poor maintenance, and numerous building and health code violations. While one can certainly find examples of municipalities and a few states regulating short-term rentals, it is a hard-pressed task to find those which completely ban it. This legislation would help those individuals and small businesses that will no longer be able to operate because of this law.” [2]
Please note that Senator Golden voted against S68730-B/ A1008-B (also known as the “illegal hotel” bill) in June 2010. He is currently representing Brooklyn’s 22nd Senate District.
Submit a comment, below, to share your thoughts on this proposed legislation.
[1] http://open.nysenate.gov/legislation/bill/S4263-2011
[2] Ibid.
I own and manage four different VR units in Paris and we are facing the same problem as you in NY. In fact, the law here has been in existence for many years now but it had never been applied. Not until two years ago when the mayor of Paris suddenly decided otherwise. He is now using the law in support of his political agenda by claiming that the ban would lower rental prices by freeing up more apartments of owners who cannot rent them short term anymore. So, in effect, he has already started the lynching before even finding out if the law was still appropriate as written, or even if it would accomplish what he claims it would.
I’m curious to know if anyone knows where I can find the first results of the consequences of the NY ban to this effect (if they exist) or anything similar we can use in our campaign over here?
Thanks.
W. Halabi
Paris
Hi,
We have found a few reports analyzing the economic contribution of vacation rentals in other cities and towns across the US but none specifically examining the negative economic impact of New York City Short-Term Rental Ban.
I hope that you will find the information provided in the following studies of interest to you:
-Report of Economic Contribution of Vacation Rentals in Osceola County, Florida: http://www.visitkissimmee.com/file.download.php?id=15
-White Papers prepared by VRMA: http://www.vrma.com/resource/resmgr/files/industryimpactwhitepaper2.pdf
Thank your for this valuable information. Our mayor seems to be very keen on applying the new law on the basis that it will contributed to a decrease in rent prices to Parisians, which is a nonsense political promise because most owners will prefer keep their apartments empty instead of having to deal with existing rent restriction laws.
it seems, however, that a compromise of some sort will be happening soon, but much is still to be done in order to achieve an intelligent solution. Among the things that we are still working on is a governance policy that would “regulate” how the short term rental activity can coexist with neighbors in the same building. I have started to make a list of proposals to this effect. But if you have anything of the sort on your side, I’d also appreciate it.
Walid
I actually called the office of rep. Golden and expressed concern about the bill that banned short term rental and expressed my knowledge how that the Mayor’s office of special enforcement is now targeting (after they already had shut down the large SRO’s operating as hotels) they are targeting small properties with 3 or 4 apartments that rent their units for tourists. We are taking about 8 to 10 people here. Very small operations. They pay taxes, the properties are well taken care of and reviews are actually very good and people love them.
I believe more and more people need to call their office to voice their the support for rep. Golden’s proposed bill to regulate short term rental.
Hi all,
It is now October, what is the outcome of the decision of May 2011?
I am planning a trip to NY next year in May and found a couple of nice apartments.
As we are traveling with 6 adults it would just be nicer to have an apartment instead of Hotel rooms. But I am not sure if these apartments are legal or illegal.
The first apartment is situated on Madison Avenue and all the apartments in this building are rented out for short stays.
The second one is a private apartment This is what the manager wrote me regarding the new law:
“The law’s intent is to stop the activities of landlords who have a stock of apartments which they use as hotel rooms instead of otherwise affordable housing for New Yorkers. The units we offer are people’s homes and not part of such a supply. Additionally our lofts are in buildings which are not subject to the law in any case. The law applies only to apartments in “class A” buildings. These are commercial buildings and we have no trouble with any of them.”
Are those apartments legal or illegal. The more I research on internet the more confused I get. It would be great if you could help me out here.
Thank you
Danielle (Luxemburg)
Well, at least they aren’t banning it. I always felt that renting makes me feel like more of a local, and it helps bring some extra income to those who aren’t always at their place making it more economical for them to stay there.
This is in response to Margaret’s comments. Long term renters can be just as disruptive as short term. In many cases worse. Eviction problems and other incidents have actually been more prevalent with long term renters. That said.there certainly is a demand for short term rentals who bring a life blood into the city that helps all aspects of the local economy. They also help keep real estate values stable and can serve to increase demand. For long term renters to live in a highly commercial area such as Times Square and then complain that they can get no peace and quiet is absurd. You simply cannot paint a broad stroke and ban all short term rentals in NYC. The hotels are loving it and that is behind this with the help of Liz Kruger who pushed it through.
Owners must take a stand now and do what is needed to get this law overturned.
I say don’t allow short term rentals, they are only good for the investors who rent them and terrible for the people who live there and have to put up with these renters. My sympathy goes out to them.
I am all for unit owners organizing and making a concerted effort to support Sen. Golden’s bill.
Can anyone suggest exactly how we can organize and take the next step?
Let’s put an end to the lunacy and repeal this misguided law on short term rental bans.The law in it’s current form does not take into account the need for short term rentals both for tourists and landlords. Yes it can be regulated for safety and health purposes. However, it is ludicrous and very likely unconstitutional to tell a property owner he cannot rent short term even though zoning ordinances permit.
Thank you…Peter
Peter,
For more information on what you can do in the fight against the New York City Short-Term Rental Ban, take a look at:
- http://protect-vacation-rentals.com/2010/10/05/new-york-owners-roll-up-your-sleeves-and-participate-fight-against-short-term-rental-ban/
- http://protect-vacation-rentals.com/2010/09/28/how-to-rent-vacation-properties-by-owner-by-christine-hrib-karpinski/
Please keep in mind that most often than not courts across the nation have upheld zoning ordinances banning or regulating short-term rentals. A lobbying/advocacy strategy might be more effective than litigation.
Buon Giorno!
I am going to stay in NYC next September. I was thinking about renting a flat from private owner via the web… but how do I know that he complies with the new regulations? thanks and regards from Ungarelli Bologna, Italy
Thank you for your question!
You can ask the owner/manager/travel agent whether the short term rental regulations may be lawfully rented for less than 30 days. You can also locate the certificate of occupancy of the building on the Department of Building Website to verify its legal status (J-1 units may be rented on a short term basis etc.)
Some real estate agents (such as New York Habitat; http://www.nyhabitat.com) have implemented procedures to ensure that the vacation rentals properties listed on their website comply with the new regulations.
Let us know how it goes.
HI, my family and myself we are coming to visit NYC next Sept. How do I recognise that a owner that is lawfully authorised to rent me a flat for one week? thanks Lorenza Italy
Can you write an entry about what the mayor’s task force does when they find someone staying in a short term rental as a tenant (not owner).
What should someone do if they are staying in the apartment and the task force / police knocks on the door? What is the short term tenant legally required (or not required) to do? Can they kick the short term tenant out right away? Can the short term tenant be arrested or fined?
What are the consequences for the owner?
Dear Cecile,
Jason Post, a spokesman for New York City’s Mayor, stated that an individual staying in an illegal short-term rental could be forced to relocate to another accommodation if safety hazards (fire hazards etc.) were to be found in the building.
Owners (not transient tenants) may be required to pay penalties.
Let us know if you have any other questions,
Thank you.
Hi, Thank you for the response. This new law has many unit owners trying to scramble and protect themselves. Short term rentals are the life blood for many unit owners. This law was very poorly thought out with little regard on how many people will get hurt or what may and will happen to real estate values This new bill that is proposed is critical and must be passed. The hotel lobby will fight this to no end and we must make a concerted effort NOW!!
In the meantime I believe setting up as a separate corp and not owning the unit personally makes sense. The law pertains to owners thus if a separate corp or vacation club as an entity owns the unit it may be insulated. There many large vacation clubs that own units in Manhattan. There is no way they will stop short term rentals for their members.
I have contacted many lawyers and most don’t even know about the new law.
Any input and or solution on how we owners can protect ourselves now is welcome pcd1@optonline.net
We created this site to help people exchange ideas on this topic and to get people informed.
This week is a very important week before the May 1rst deadline.
I would suggest that you subscribe to our blog so you can get notification when there is new posts coming out.
Good luck with everything . We will keep your email address for future meetings.
Owners should make a concerted effort here. What is the status of this bill?
Also, under the current law if the unit is owned by a vacation club does it exempt the owner? What can an owner do at this point to be insulated from the law?
In NYC this law is too broad and oversteps its intent. Valid units that comply with health and safety standards should NOT be included.
Thank you Peter for your question.
We would have to do a little bit of research to respond to your question.
We know of owners who are currently operating vacation clubs but we do not know how they operate. Will they change their membership documents in view of the new legislation coming into effect in May 2011 etc.? It is a possibility.
I believe it would take some work: agreements to draft, regulations to review.
It is another avenue to explore.
Dear Peter,
At this point in time, the amendment, S4263-2011, has made it as far as the rules committee, but no further. Owners should work together to lobby for rules and regulations protecting their rights as well as the safety and security of short-term renters.
Let us know if you have other questions.
Thank you.
Finally, common sense could written into law…correcting all the short coming
of last year law. New York city deserves decent short term rental from smaller
operators like in every large developed city in the world.
Yes I agree Jean Noel! We will keep everyone posted on new developments as we are approaching the May deadline.
If you have idea of possible articles you would like to see published, please send them our way.
This is a battle that will unfortunately continue long after May 1rst.
Thanks for sharing your thoughts