State of New York Short-Term Rental Regulations

Navigating the intricacies of short-term rentals in New York State can be a challenge, but with the right guidance, it becomes a manageable task. This article aims to provide a clear overview of the regulations, ensuring you're well-informed and prepared. Let's delve into the specifics of what the Empire State expects from short-term rental hosts.

What is Considered a Short-term Rental in New York State?

New York has its own way of defining things, and short-term rentals are no exception. Let's break it down.

Definition of a Short-term Rental

So, what exactly is a short-term rental in New York? Well, it's any dwelling rented out for less than 30 consecutive days. But here's the twist: it stays forr fewer than 90 consecutive day for tax purposess. I know it's a bit confusing, but that's New York for you!

New York State Multiple Dwelling Law

Alright, this is where things get a tad technical. New York State has this thing called the Multiple Dwelling Law. It's basically the big cheese when it comes to regulating short-term rentals. There are two main types of dwellings: “Class A” and “Class B”.

“Class A” is all about residential multifamily buildings. Think apartments, duplexes, and the like. The catch? They're for permanent residence only, meaning stays of 30 days or more. So, short-term rentals? A big no-no. But, and this is a big but, you might be able to rent out a room if you're there the whole time and your guests can wander around the whole apartment. It's like having a sleepover with strangers who pay you!

“Class B,” on the other hand, is for the transients. We're talking hotels, lodgings, and boarding houses. If you're thinking of starting a B&B or something similar, this is your category.

Starting a Short-term Rental Business in New York State

Dreaming of starting your own Airbnb in New York? Well, the process is pretty straightforward. Let's dive in.

Standard Procedures for Starting a Business

First things first, you don't need to set up an LLC to operate a vacation rental here. That's a relief, right? But you'll need a Federal Tax ID, also known as an EIN. It's super easy, just head to the IRS website. And don't forget to register as a New York State Sales Vendor. You'll need a sales tax Certificate of Authority from the NYS Department of Taxation and Finance. Oh, and set up a NY.Gov ID while you're at it. I truly love how New York is open for businesses and has made the process so user-friendly.

Short-term Rental Licensing Requirement

Now, here's the thing. New York doesn't have statewide requirements for short-term rental licenses. It's like how California, Colorado, and Hawaii do things. The only odd one out is Florida, where you need a license from the state bigwigs.

But, and it's significant, local county and city authorities in New York have their own rules. With the boom of the Airbnb industry, many cities have set up strict requirements for licensing vacation rentals. So, always check with your local authorities.

Building and Housing Requirements for Short-term Rentals

Safety first, right? If you're getting into the short-term rental game, you've got to ensure your place is up to snuff.

Safety

Your guests' safety is paramount. Ensure you have smoke detectors, carbon monoxide detectors, and a clear evacuation plan. And always, always have a first aid kit on hand. It's not just good practice; it's essential.

Wiring

Electrical safety is a biggie. Ensure all wiring is up to code and outlets are in good working condition. No one wants a vacation memory of a power outage or an electrical fire.

Signage

If you're in the “Class B” category, you might need proper signage indicating exits, emergency routes, and other essential information. It's not just about aesthetics; it's about guiding your guests in case of emergencies.

Insurance

Last but not least, get yourself some good insurance. Accidents happen, and you want to be covered. Look for policies tailored for short-term rentals or vacation homes.

New York Short-term Rental Taxes

Navigating the world of taxes can be a bit of a headache, but when it comes to short-term rentals in New York, it's crucial to know your stuff. Different cities have tax rates and regulations, so let's break it down with examples.

Transient Tax and Lodging Taxes

In New York, transient and lodging taxes apply to short-term rentals. For instance:

• New York City: Known for its iconic skyline and bustling streets, NYC imposes a hotel room occupancy tax. If you're renting out a place in Manhattan, Brooklyn, or any of the five boroughs, you'll need to be aware of this. For instance, a room rate of over $40 a night can have a tax of 5.875% plus a $2.00 to $3.50 per unit per day, depending on the type of accommodation.
• Buffalo: As the second-largest city in the state, Buffalo has its own set of regulations. Erie County, where Buffalo is located, imposes a bed tax of around 5% on any hotel or motel room charge.
• Rochester: Located in Monroe County, Rochester has a hotel room occupancy tax rate of 6%. So, if you're thinking of setting up a cozy rental near the Genesee River, keep this in mind.

Remember, these are just examples, and rates can change. Always check with local authorities to get the most up-to-date information.

State Sales Taxes on Airbnbs

On top of city-specific taxes, if you're listing on Airbnb or any other platform, you should be aware of state sales taxes. The combined sales tax rate in New York State can range from 7% to 8.875%, depending on the county. For instance:

• If you're renting out a chic loft in Brooklyn, the combined state and local sales tax rate is 8.875%.
• Over in Albany, the capital city, the combined rate is 8%.