Navigating the NYC Short-Term Rental Ban: The Benefits of 30+ Day Rentals
Navigating the NYC Short-Term Rental Ban: The Benefits of 30+ Day Rentals
The city of New York is a popular destination for both tourists and business travelers, and as a result, the short-term vacation rentals market has grown rapidly in recent years. However, this growth has led to concerns about the impact of short-term rentals (STR) on the city's housing market and its residents. To address these concerns, the city has recently imposed a ban on short-term rentals, making it illegal for property owners to rent out their apartments for stays of less than 30 days.
While this ban may seem like a setback for property owners who have relied on short-term rentals as a source of income, it presents a unique opportunity for others to explore the world of 30+ day rentals. In this article, we will explore the benefits of 30+ day rentals and how property owners can navigate the NYC short-term rental ban to make the most of this opportunity.
Navigating the NYC Short-Term Rental Ban
Despite the ban on short-term rentals, property owners in NYC still have the option of offering 30+ day rentals. However, it's important to understand the rules and regulations surrounding the ban set by municipalities and to ensure that you are in compliance with all local laws. It would be wise to stay away from fines as the city continues to crackdown on illegal short term rental properties.
State law and city regulations are clear: Home rentals of fewer than 30 days are not permitted unless the permanent resident or homeowner is present. Short-term rentals are only allowed if the host remains in the same unit as guests, and no more than two guests are permitted.
Lawmakers are also refers to the zoning laws set in place where STR in buildings with three or more units is prohibited, per the NYS Multiple Dwelling Law*.
The new law, Local Law 18, will take into effect on March 6th. Registrations will begin on the same day, and property owners must register their property with the Mayor’s Office of Special Enforcement, providing information about the property, including the address, owner information, and the number of units, along with various other documents.
It's also important to note that the ban applies to all types of short-term rentals, including those made through platforms such as Airbnband VRBO. The new law requires the listings to contain the short term rental permit as platforms will be prohibited from publishing any unregistered short-term rentals.
In addition, the new law does not allow short-term listings from renters or owners in rent-regulated buildings and NYCHA units are not permitted. The law also apply to one-and two-family houses.
This means that property owners who have been renting out their apartments through these platforms will need to find alternative ways to generate rental income, such as through 30+ day rentals.
Additionally, property owners should be aware of the laws and regulations surrounding the advertising and promotion of short-term rentals. While it is illegal to advertise or promote short-term rentals of less than 30 days, there is no ban on advertising 30+ day rentals. As such, property owners who are looking to tap into the 30+ day rental market should focus on promoting their properties through targeted marketing and advertising strategies, such as online listings, local newspapers, and social media.
The Benefits of 30+ Day & Monthly Rentals
30+ day rentals offer several benefits over traditional short-term rentals, such as increased stability and predictability in rental income, as well as the ability to build a long-term relationship with tenants. These rentals also offer a more traditional rental experience for tenants, who are often looking for a temporary home away from home.
1. Increased Stability and predictability in rental income
One of the biggest advantages of 30+ day rentals is the increased stability and predictability of rental income. Unlike short-term rentals, which can be impacted by seasonal fluctuations in demand, 30+ day rentals provide a more consistent stream of income. This stability makes it easier for property owners to plan for the future and manage their finances, knowing that they will have a steady stream of rental income coming in each month.
In addition, 30+ day rentals often involve longer-term leases, which provide a level of security for both property owners and tenants. Tenants are more likely to sign a lease for a longer period of time, as they are looking for a temporary home, while property owners can rely on the security of a lease to ensure that their property is occupied for a set period of time. This eliminates any uncertainty about whether or not a tenant will stay throughout their contract period as well as reduces the risk of turnover rates when signing new tenants in after each cycle ends. Furthermore, studies have shown that mid to long-term leases can also lead to higher occupancy rates than short term renting which means less vacancy time between tenants and ultimately higher returns on investment for landlords.
By understanding the potential benefits of longer rental contracts, landlords can leverage this alternative income source in order to generate additional revenue even in today’s uncertain market conditions. It is important for landlords to do their research and weigh all of their options before making any decisions regarding renting out their properties in NYC or elsewhere. Rove can provide unparalleled services in helping owners find their next tenant or real estate property.
Ultimately, it will be up to Landlords to determine which route best suits their individual needs and goals. With knowledge and foresight, landlords may find long-term leases an attractive option that offers stability and predictability alongside higher yields than short-term rentals in Manhattan ever could. Longer agreements may provide landlords with additional revenue streams that wouldn’t be possible with shorter term rentals – such as rent increases once existing contracts expire or placing restrictions on subleasing in order to protect against unauthorized tenants occupying their property. There may even be an opportunity for landlords to collect interest on deposits made by tenants before they move in should it be written into the contract agreement.
Finally, longer-term leases can also help generate income through things such as increase in property values or collecting interest on deposits made by tenants before they move in.
Discover more about the financial merits of fully furnished luxury rentals in our blog on investing in fully-furnished luxury rentals in NYC, a smart choice for investors seeking a stable income stream.
2. Building a long-term relationship with tenants
Another benefit from having 30+ day rentals is that landlords have the ability to build a long-term relationship with tenants. Landlords gain control over how their housing units are maintained and managed during the rental period since there are stricter rules regarding cleanliness, noise levels, and other policies to protect their interests. This makes it easier for landlords to take action if problems arise during the tenancy without having to constantly chase around tenants who are only there temporarily.
From the tenants perspective, when signing a 30+ day agreement, they looking for a place to call home for a longer period of time, and are more likely to treat the property with care and respect. This, in turn, can help to reduce the cost of repairs and maintenance, as well as minimize the amount of time the property is vacant between tenants.
In addition, by building a long-term relationship with tenants, property owners can develop a better understanding of their needs and preferences, making it easier to tailor their services to meet their needs. This can result in higher levels of satisfaction and loyalty, which can help to reduce tenant turnover and increase the likelihood of tenants renewing their lease when it expires. At Rove, we provide 24/7 concierge services to all our guests to ensure they have an unforgettable experience with us.
3. A more traditional rental experience for tenants
30+ day rentals offer a more traditional rental experience for tenants, who are often looking for a temporary home away from home. This type of rental is particularly popular among business travelers and people relocating to the city, as it provides the comfort and security of a home, rather than just a place to sleep for a few nights.
In addition, 30+ day rentals typically come with a range of amenities and services, such as fully furnished apartments, housekeeping, and laundry services. Rove was created to provide an unparalleled luxury experience for travelers and business professionals alike. Our meticulously curated portfolio of fully-furnished properties offers premium amenities, workstations that are set up with monitors and keyboards, and stylish furnishing making it possible to live, work, and travel without compromise.
Elevated design and offerings can help to attract tenants who are looking for a more comprehensive rental experience, and can provide a competitive advantage over short-term rentals, which often lack these amenities.
The ability to adapt to 30+ day rentals in NYC is the keys to success
The recent ban on short-term rentals in NYC presents a unique opportunity for property owners to explore the world of 30+ day rentals. Renting out properties on 30+ day contracts may be a more advantageous option for landlords than short-term rentals due to additional benefits such as increased stability, greater control over management and maintenance of housing units, potential additional revenue streams, better relationships with tenants, and more favorable contractual terms overall. Even though NYC’s short-term rental ban may have put an end to many popular vacation rentals, those who are willing to commit themselves to a 30+ day rental contract still have the opportunity to make money and maximize returns on their investments.
By understanding all aspects involved with longer rental contracts – from potential benefits like increased stability and financial gains all the way down to drawbacks like lengthy leases that may require certain commitments from both parties – landlords can leverage this alternative income source in order maximize returns on their investments even during uncertain times such as these. It is important for property owners to do research accordingly and weigh all options before making any decisions regarding renting out their properties whether it is in NYC or elsewhere - ultimately it will be up to you to decide which route best suits your needs and goals most effectively to achieve the desired results. Rove is a property manager focused on luxury homes in Manhattan in Brooklyn, and can help consult you in understanding your options on converting your short term rental into a 30+ day rental.
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With knowledge foresight, property owners may find mid to longer-term leases especially attractive offering variety of both stability predictability alongside higher yields than short term rentals could ever provide through traditional methods sources.
However, it's important to understand the rules and regulations surrounding the ban and to ensure that you are in compliance with all local laws. With the right strategies and approach, property owners can successfully navigate the ban and capitalize on the growing demand for 30+ day rentals in NYC.
* More about the Multiple Dwelling Law. Please ensure to check local governments and zoning district rules as there may be exemptions to land use and rental laws.
NYS Multiple Dwelling Law prohibits short-term rentals in buildings with three or more units.
MDL § 4(8)(a), the relevant statute, states: A “class A” multiple dwelling is a multiple dwelling [3 units] that is occupied for permanent residence purposes…A class A multiple dwelling shall only be used for permanent residence purposes. For the purposes of this definition, “permanent residence purposes” shall consist of occupancy of a dwelling unit by the same natural person or family for thirty consecutive days or more and a person or family so occupying a dwelling unit shall be referred to herein as the permanent occupants of such dwelling unit. The following uses of a dwelling unit by the permanent occupants thereof shall not be deemed to be inconsistent with the occupancy of such dwelling unit for permanent residence purposes: (1)(A) occupancy of such dwelling unit for fewer than thirty consecutive days by other natural persons living within the household.
New York City Building Code prohibits short-term leasing in one and two family homes. Section 310.1.3 of the New York City Building Code (BC), found in Title 28 of the Code, provides that an R-3 occupancy includes “buildings or portions thereof containing no more than 2 dwelling unit, occupied, as a rule, for shelter and sleeping accommodation on a long-term basis for a month or more at a time . . ..”