NY Building Owners Beware: Advertised Short-Term Rentals of Your Units May Cost You

Recently, the Real Estate Board of New York (REBNY), a politically powerful trade group, has joined forces with the city’s hotel industry organizations in an effort to stamp out advertised short-term rentals and companies, like Airbnb, that thrive on them. On June 17, both houses of New York’s legislature passed a bill that will dispel remote tenants from advertising their units for short-term rentals. Should New York Governor Andrew Cuomo sign the bill into legislation, the building’s owner, not its tenants who advertise the rental listings, will be fined for violations.

Although unit rentals for less than 30 days are illegal under New York’s 2010 law, supporters of this new bill aim to target violators of the city’s Multiple Dwellings Law, who cause housing to be taken off the market and leads to overcrowding. Critics argue that spaces listed on sites like Airbnb would otherwise be available to residents, rather than tourists, for rent or sale.

Should this legislation go into effect, landlords must take the necessary steps to avoid fines by staying in compliance with the law. New York building owners may want to consider revising the language in their lease agreements that will prohibit short-term rentals. According to Crain’s, some landlords have already hired investigators to uncover law-breaking tenants and to search through short-term listing sites, like Airbnb, to see if units within their buildings are advertised.

Navigating the complexities of New York real estate legislation and guidelines can be challenging. A New York residential real estate attorney can help you revise the language in your leasing contracts to make sure that you avoid fines and stay in compliance with the law. The lawyers at Blodnick, Fazio & Associates P.C. have experience in the preparation and review of real estate contracts and have represented both buyers and sellers in residential and commercial real estate transactions. For a free consultation, contact the firm at (516) 280-7105.

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