Airbnb – Jack Jaffa & Associates

If my tenants rent out their apartment for the summer, what are my responsibilities?

chaya — Wed, 17 May 2023 16:22:41 +0000

Q: Summer is coming up, and some of my tenants are planning on renting out their apartments for the summer. What are my responsibilities as a property manager?

JA:With the weather warming up and summer vacation fast approaching, lots of people are renting out their apartments on Airbnb or other short-term rental platforms. But having a tenant rent out their apartment isn’t as simple as it seems.

In addition to existing laws for short-term rental in NYC, last year, LL18 was put into effect. As per this law, hosts are required to register their apartment with the city before renting out their homes for less than 30 days, under penalty of a fine.

And this law doesn’t just affect your tenants. As a building owner or property manager, you’re responsible for the safety and compliance of your properties, so YOU will be issued a violation for any illegal short-term rentals on your property.

If you don’t want your apartments being used as short-term rentals, you can always have your building listed on the Forbidden Building list with the OSE.

To learn more about LL18 and how it affects you, you can check out our CEO Jack’s blog on the topic.

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New Law on Short-Term Rentals

Jack Jaffa — Tue, 27 Dec 2022 03:04:58 +0000

Short term rentals getting the short end of the stick?

Everyone’s looking for ways to make a quick buck these days, and renting out their apartments to vacationers on Airbnb or another short-term rental platform is an easy way for New Yorkers to pad their pockets. But renters and property owners need to know that this process is about to become a lot more complicated, thanks to a new law going into effect in 2023.

Here’s what you need to know about the new law as a NYC building owner.

What is the new law?

Local Law 18 of 2022 requires hosts to register their apartment with the city before renting out their homes for less than 30 days. LL 18 will be going into effect on January, 9, 2023.

What are the requirements for LL 18?

The Short-Term Rental Registration Law requires all short-term rental hosts to register with the Mayor’s Office of Special Enforcement (OSE). If the application is approved, the OSE will issue a registration number for the applicant. Booking platforms like AirBNB will need to verify the registration number of any unit before listing it for rent. There will be penalties of up to $5,000 for both hosts and booking services who do not comply with LL 18.

Short-term rental listings for units in Class B multiple dwellings, which have been approved by the City of New York for legal short-term occupancies, are exempt from the registration requirement.

Can anyone register an apartment?

The law limits registration of host-apartments to people that occupy a unit of housing. The OSE cannot grant a registration for rent-regulated and NYCHA units. Registration requests will also be denied for all buildings on the Prohibited Building lists, created by owners who notify the OSE that short-term rentals are not allowed in their buildings.

Are there any additional requirements for short-term rentals in NYC?

The new law, requiring hosts to register their apartments before a short-term rental, does not nullify these existing laws for short-term rentals in NYC:

It is illegal to rent out an apartment for fewer than 30 days if the owner or tenant is not present.
Hosts may have up to two paying guests staying in their apartment for fewer than 30 days.
Every guest must have free and unobstructed access to every room and to each exit within the apartment.
Internal doors cannot have key locks that allow guests to leave and lock their room behind them. All occupants need to maintain a common household; every member of the family and all guests must have access to all parts of the dwelling unit.
New York State law prohibits the advertising of an apartment in a Class A multiple dwelling for rent for fewer than 30 days. Fines for noncompliance range from $1,000 to $7,500, and will be issued to the person responsible for the advertisement.

As a NYC building owner, how does LL 18 affect me?

As the building owner, you are responsible for ensuring that your properties are maintained in a safe and compliant manner at all times. You will be issued a violation for any illegal short-term rentals on your property. Consequently, it may be in your best interest to educate your tenants about the new law and assist them in any way possible with registering their apartments for short-term rentals.

If you’re wondering whether your tenants are renting out your units, you can stop the guesswork—the OSE will alert building owners about short-term rental registrations in their buildings. If you don’t like the idea of your apartments being used as short-term rentals you can always have your building listed on the Forbidden Building list with the OSE.

The good news, this is a law that might actually help property owners, as Local Law 18 will enable NYC building owners to stay in the know on short-term rentals in their buildings, and to forbid short-term rentals if they so desire.

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Violation Issues You Might Run Into with Vacation Rental Services

Chase Jaffa — Fri, 21 Jun 2019 20:20:37 +0000

This past winter, a $21 Million lawsuit was filed against a group of real estate brokers for renting out illegal Airbnb apartments in Manhattan. The news of this lawsuit, the largest of its kind ever brought by the city. sent waves of shock through the landlord community in New York City.

And if you think this was a one-time thing, think again. In other incidents, 20 apartment owners in a West Side condo building were raided and slapped with similar violations and even a private two-family house which converted an extra apartment in the basement into a rental, was issued four violations in total and a whopping $183,000 in fines, with additional violations and fines still pending.

From these violations, one thing is definitely clear: the city is cracking down hard on property owners who disregard the law and rent out their units on sites like Airbnb, VBRO, and Home Away.

If you’re still not convinced, consider this: in April, New York City mayor Bill de Blasio allocated $2.9 million in funding to Office of Special Enforcement (OSE) over the next two years, and stressed that the fund be spent mostly on “illegal hotel enforcement.” Soon after, the OSE expanded their special enforcement task force from 27 members to 47. Also, fines for violations of this law have increased by $5000 – $15000 increased over the last few months. Low fines are now a thing of the past.

With the summer tourist season at its peak and vacation rentals at an all-time high, make sure the next news item isn’t about you. If you’re a building- or condo-owner, it’s a good idea to know what your tenants are up to, because you may be liable for any illegal vacation rental that occurs on your property. If you suspect that one of your tenants may be renting out their units this summer, it’s time to take action.

Here’s what you need to know to make sure you’re not in violation:

What does the law say about short-term rentals?

First, it’s crucial that you know exactly what is legal and what is not with regards to short-term rentals in NYC.

According to the law, it is illegal for all New Yorkers who live in buildings with three or more residential units to rent their apartments out for less than 30 days. The only exception to this law is if the owner or leaseholder of the unit is present during the entire stay. This law makes nearly all temporary summer rentals illegal.
Rent-stabilized buildings have specific restrictions for how much residents can charge renters on sites like Airbnb.
Co-ops cannot allow short-term leases at all. Again, this means all summer rentals are out.
Condo owners can’t forbid leasing completely but the bylaws require minimum and maximum lease terms and have complicated rules against vacation rentals.
Single-family homes are restricted by zoning laws and likely require modifications to their Certificate of Occupancy and/or architectural changes in order to be lawfully rented out.

What kinds of penalties are issued for unlawfully sub-leasing a short-term rental unit?

The primary violation of short-term rentals in most units is an occupancy violation for transient use. From there, it can snowball into loads of other issues and violations, leading to huge fines and even eviction in extreme cases. Tenants and building owners might mistakenly think they are following the rental laws, but are unaware that they are non-compliant with countless NYC building and zoning laws.

The Class of the violations being issued depends on how many units are proven to be rented out on a transient basis.

If only one unit is found to be rented out transiently, the owner will be issued a Class 2 violation which includes a base penalty that can be mitigated by proof of correction before the first scheduled hearing.

If two or more units are found to be rented illegally, a Class 1 violation will be issued, which includes a base penalty of $15,000 plus $1000 per day up to 45 days, for a total of $60,000 in fines.

In addition to those massive fines, a unit that is rented out on a transient basis, now falls into the class of a hotel and has loads of other building codes and zoning laws in place which the owner might not even be aware of. In both a Class 1 and Class 2 violation, noncompliance with hotel laws can trigger additional and hefty fines and violations.

These laws include:

A fire escape is not deemed a second means of egress for hotels.
Fire alarms in hotels must be code issue.
Hotels must have proper sprinkler systems in place.

To make it even more troubling, the courts have ruled that owners with a Class 2 occupancy violation can still be hit with Class 1 code violations. You can also move from a Class 2 to a Class 1 violation if you are found to be a repeat offender.

Plus, if the inspector who raids your building has extra time on their hands, they may vey likely find more code violations to slap onto your building.

Don’t think you are safe from these penalties and violations if you never post any of your units on Airbnb and similar sites. You are responsible for every tenant in your building, and if one of them is unlawfully renting out a unit on a temporary basis this summer you’ll be the one who winds up paying all the associated fees and penalties.

How can I determine whether my tenants are renting out their units?

In recent violations at the 500-unit Atelier Tower, the owners themselves became aware of the illegal rentals and notified the proper authorities.

Here are some clues that helped them identify the illegal activity which you can look for within your own units:

Suitcases frequently rolling down hallways
Individuals who are not residents of the building constantly coming and going
Tourists in full vacation gear crowding the common areas
The absence of the regular tenant from the building for extended periods of time

Don’t let an illegal rental ruin your summer. Make sure you are aware of everything that is going on in your rental units so you don’t get slapped with heavy fines and penalties. Wishing you a happy, healthy and violation-free summer from all of us here at Jack Jaffa & Associates.

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