Airbnb & VRBO Performance in New York New York.

Short-Term Rental Regulations in New York, New York for 2024

Overview of Local Law 18

Registration Requirements

• Short-term rental hosts must register their units with the Mayor's Office of Special Enforcement (OSE).
• Registration includes providing personal and unit details and paying a non-refundable fee of $145.

Prohibited Transactions

• Booking service platforms (e.g., Airbnb, VRBO, Booking.com) are prohibited from processing transactions for unregistered short-term rentals.

Guest and Host Presence

• Short-term rentals of entire apartments are prohibited for durations less than 30 days unless the host shares the unit with a maximum of two guests.

Exemptions

• Rentals for 30 consecutive days or more are exempt from the registration requirement.
• Units in "Class B" multiple dwellings, approved for legal short-term occupancies, are also exempt.

Prohibited Buildings

• Short-term rentals are prohibited in buildings listed on the Prohibited Buildings list, which includes NYCHA buildings, entire rent-regulated buildings, and buildings where short-term rentals are prohibited by leases or occupancy agreements.

Security Deposit

• A security deposit is required for short-term furnished rentals to protect the landlord against property damage or missed rental payments.

Enforcement

• The OSE will collaborate with booking platforms to ensure they use the city's verification system correctly and stop processing unverified transactions starting September 5, 2023.

Compliance with Existing Laws

• Hosts must comply with all legal requirements that predated Local Law 18, with ongoing enforcement in response to complaints.

Impact and Additional Considerations

Reduction in Listings

• The new regulations have led to a significant reduction in available short-term rental listings on platforms like Airbnb.

Long-term Rental Market

• The restrictions on short-term rentals may lead to an increase in demand for long-term rentals and more stable tenant housing options.

Taxation

• There are ongoing discussions and proposals to require the collection of sales and occupancy taxes for short-term stays, similar to those required for hotels and motels.

Community Impact

• The regulations aim to balance the interests of hosts, guests, and the broader community, but have been criticized for potentially harming middle and working-class residents who rely on short-term rental income.

Top Neighborhoods Generating the Most Airbnb Revenue in New York, New York

1. Williamsburg, Brooklyn

• High Occupancy Rate: 87%
• Annual Revenue: $49,575
• Average Daily Rate: $79
• Williamsburg is a trendy and hip neighborhood known for its art scene, craft breweries, boutique shops, and excellent restaurants. It offers easy access to some of Brooklyn's best nightlife and is home to the East River State Park, providing stunning views of Manhattan.

2. Boerum Hill, Brooklyn

• Occupancy Rate: 72%
• Annual Revenue: $82,600
• Average Daily Rate: $314.7
• Boerum Hill is a charming and historic neighborhood with convenient access to public transportation and major attractions. It boasts attractive 19th-century architecture, a strong sense of community, and proximity to other popular Brooklyn neighborhoods like Cobble Hill and Park Slope.

3. Lefferts Garden, Brooklyn

• Occupancy Rate: 75%
• Annual Revenue: $44,700
• Average Daily Rate: $162.8
• Lefferts Garden is known for its exceptional convenience, rich cultural heritage, and growing popularity among young professionals and families. The neighborhood offers easy access to Manhattan and other parts of Brooklyn via multiple subway lines and is close to Prospect Park.

4. Upper West Side, Manhattan

• Occupancy Rate: 77%
• Annual Revenue: $39,017 (Manhattan average)
• Average Daily Rate: $137
• The Upper West Side is a highly desirable area with a high occupancy rate. It offers easy access to Central Park, numerous cultural institutions, and a variety of dining and shopping options, making it an attractive choice for guests.

5. Harlem, Upper Manhattan

• Occupancy Rate: 74%
• Annual Revenue: $37,522 (Upper Manhattan average)
• Average Daily Rate: $103
• Harlem is a vibrant neighborhood with a rich cultural history. It offers a blend of historic charm, modern amenities, and easy access to public transportation, making it a popular choice for Airbnb guests.

These neighborhoods are appealing due to their unique blend of cultural richness, convenient locations, and access to major attractions and public transportation, ensuring guests have a memorable and comfortable stay in New York City.

Practical Tips to Run a Successful Short-Term Rental Business in New York, New York

To navigate the stringent regulations and ensure a smooth operation of a short-term rental business in New York City, several practical tips can be invaluable.

Noise Regulations and Quiet Hours

Inform your guests about quiet hours to avoid noise complaints, which can lead to fines and violations. Clearly outline quiet hours in your house manual and communicate them through pre-arrival messages to set expectations.

Creating a Comprehensive House Manual

Develop both digital and physical house manuals that include essential instructions, such as Wi-Fi passwords, appliance usage, emergency exit routes, and safety protocols. This manual should also cover specific NYC regulations, like the requirement for hosts to be present and the limit on the number of guests.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with detailed instructions on how to use the smart locks and ensure they have all necessary access codes before their arrival.

Parking Instructions with Photos

For properties where parking is available, create detailed parking instructions accompanied by photos. This helps guests understand where to park, how to access parking facilities, and any specific rules or restrictions that apply.

By implementing these tips, you can enhance the guest experience, reduce potential issues, and ensure compliance with NYC's strict short-term rental regulations, ultimately contributing to a successful and hassle-free short-term rental business.

Here is a brief list of house cleaning, repair, and maintenance providers in New York, New York:

New York Home Cleaning Service

• Specializes in deep cleaning, decluttering, and restoration of neglected homes, including hoarder homes and biohazard cleaning.
• Offers services such as air quality improvement, disinfecting, dust and odor elimination, and home organization.
• Provides additional services like wall repairs, painting, wood floor refinishing, and pest control.
• Serves NYC, Brooklyn, Queens, and surrounding areas.

NYC House Cleaners

• Offers residential and office cleaning services, including deep cleaning, move-in/move-out cleaning, and same-day cleaning.
• Services include sweeping, mopping, scrubbing, sanitizing, window washing, and more.
• Covers all areas of NYC, including Manhattan, Brooklyn, Staten Island, Bronx, Queens, and Long Island.

Lazy Susans Cleaning

• Provides a wide range of cleaning services including residential, office, and commercial cleaning.
• Specializes in deep cleaning, move-in/move-out cleaning, Airbnb turnaround cleaning, and post-renovation cleaning.
• Offers customized cleaning plans and services such as appliance cleaning, laundry, and home organization.
• Operates in Manhattan and Brooklyn.

Handy

• Offers house cleaning services that can be booked through their app or website.
• Services include sanitizing bathrooms, vacuuming, sweeping and mopping floors, and dealing with trash.
• Additional services like fridge and oven cleaning, laundry, and window cleaning are available.
• Covers all areas of NYC and offers a Happiness Guarantee.

Maid Marines

• Provides high-quality maid services and apartment cleaning in NYC.
• Cleaners are vetted, identity and background checked, and professionally trained.
• Offers weekly, bi-weekly, and monthly cleaning services with a transparent pricing policy.
• Services include a 55 Point Checklist for thorough cleaning of bedrooms and common areas.
• Operates in Manhattan, Brooklyn, and Queens.

New York Short-Term Rental Management Fees: A Breakdown of Costs and Services

In New York, short-term rental management fees can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes comprehensive services such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often ranging between 20% to 30% of the monthly revenue.

In contrast, basic or half-service management, which may involve streamlined and automated processes with minimal human intervention, can cost less, usually between 10% to 15% of the monthly revenue. Additional fees may apply for services like cleaning, repairs, or interior design, further impacting the overall cost. Understanding these fee structures is crucial for property owners to make informed decisions and ensure their investment remains profitable and well-maintained.