In recent years, vacation rentals and other short-term rentals have become incredibly popular. Homeowners can gain some extra income and travelers can enjoy relatively inexpensive accommodations. The most prominent short-term rental business is, of course, Airbnb. Other short-term rental businesses include RBO, Homeaway, and Housetrip. They all operate similarly by connecting hosts and guests online and giving them a platform to make a short-term rental agreement.

While this new home-sharing marketplace certainly has its benefits, there are also a number of issues that can arise when a homeowner or tenant decides to start renting out a property on a short-term basis. Homeowners should be aware of the laws and regulations governing short-term rentals. Landlords should also carefully monitor tenants to make sure they are abiding by those rules.

Short-Term Rentals and the Law

States and cities across the country are beginning to develop an increasing number of regulations specifically aimed to rein in the use of short-term rentals. There are a number of policy goals behind these rules, from safety to mitigating rent inflation.

The major New York state laws that impact short-term rentals include the Multiple Dwelling Law, the Housing Maintenance Code, the Administrative Code, and the New York City Building Code. All of these laws prohibit short-term rentals—those that are for a term of less than 30 days—in “Class A” dwellings. Class A dwellings are those that are zoned for “permanent residence purposes.”