Regulations for short-term rentals in New York begin in 2025

Albany, New York – Around March 25, a new law in New York will go into effect that targets short-term rental properties, such as those that are listed on websites like Airbnb or VRBO. Governor Kathy Hochul signed S885C/A4130C in the final days of December, mandating that hosts list their properties in a registry.

In an effort to alleviate the housing issue, lawmakers created the first statewide short-term rental register in the country. A residential unit rented for less than 30 days is considered a “short-term rental unit” under the law.

Democratic Assemblymember Pat Fahy stated, “This law will give communities the tools they need to monitor and assess the effects of short-term rental units on their local housing markets.”

Short-term rental operators and property owners are required to register with either a municipal system or the Department of State (DOS). In addition to removing any advertisements for unregistered homes, any booking service that makes these rentals possible must confirm registrations and registration numbers.

It also requires booking services to disclose their data and collect taxes in order to prevent illicit rentals. They must submit monthly or quarterly reports to the DOS on registration numbers, property locations, occupancy information, and visitor counts. The municipalities where the properties are located would receive this data.

According to the law, short-term rentals are considered “hotels” for tax reasons, and booking firms are required to collect and send the relevant taxes. Additionally, booking services must register with the state, keep records, work with the tax commissioner, and ensure that tenants pay the taxes they owe.

The law also explicitly empowers the Attorney General and cities, towns, villages, and hamlets to take legal action against violators in order to compel compliance.

According to proponents of industry regulation, unregulated, illegal short-term rental booking sites have cost local governments more than half a billion dollars in unpaid taxes since 2019.
Even while short-term rentals are an essential part of the state’s tourism economy, they have nevertheless increased local housing prices and rents.

Democrat Michelle Hinchey, the bill’s Senate sponsor, declared, “Our Short-Term Rental Registry is a breakthrough for New York’s housing future.” “Communities will have the resources necessary to understand the full extent of short-term rentals, enabling them to create plans to boost affordability, create more stable housing options, and generate unrealized income.”