NYC Has Approved 22 Percent Of STR Applications Under New Law

Key Takeaways:

– Nearly five months after new regulations took effect, NYC has ruled on 90 percent of applications from short term rental hosts.
– 22 percent of applications were approved and 16 percent were rejected.
– 53 percent of applications were bounced back for corrections or additional information.
– Reasons for rejections include submitting public housing units or rent-controlled units, listing buildings on a prohibited list, and certain rental leases barring short-term use.
– The Office of Special Enforcement verifies the host’s identity, property location, and compliance with the law.
– New York’s Local Law 18 forbids renting out entire homes or apartments for fewer than 30 days and requires hosts to be present for stays of fewer than 30 days.
– The law has significantly impacted Airbnb’s operations in the city, with a decrease of 80 percent in listings.
– Airbnb has challenged the law but the challenge was dismissed.

inman:

Nearly five months after new regulations took effect, NYC has ruled on 90 percent of applications from would-be short term rental hosts.

When New York City updated its regulations on short-term rentals last year, it passed a new requirement that all rental operators must have their units registered with the city.

Nearly five months after the bill took effect, New York City’s Office of Special Enforcement has ruled on 90 percent of applications from would-be short-term rental hosts, with 1,211 or 22 percent of applications approved and 897 or 16 percent of applications rejected, according to data the city provided the travel news site Skift

Fifty-three percent of applications (5,549) were bounced back for corrections or additional information, according to the report. Typical reasons for rejections included applicants submitting public housing units or rent-controlled units, both of which are forbidden for use as short-term rental. Other reasons include building owners listing their buildings on a prohibited buildings list or certain rental leases barring short-term use.

As part of the approval process, the Office of Special Enforcement verifies the host’s identity and property location and then ascertains whether they are in compliance with the new law. That usually involves confirming that the host actually lives in the unit they are hoping to rent, whether or not that unit falls under rent regulations or any other regulation that would prevent it from being legally rented, and inspecting the unit to determine if there are any safety violations on site.

New York’s Local Law 18, in addition to requiring operators to register their units with the city, forbids New York City residents from renting out their entire home or apartment for fewer than 30 days, instead allowing only sections of homes to be rented out and requiring hosts to be present in the property for stays of fewer than 30 days.

Short-term rentals king Airbnb has derided the law as a de facto ban on its business in the nation’s largest city. The company mounted a legal challenge against the law in June, but it was dismissed.

The law has cut into Airbnb’s operations in the city considerably. The number of Airbnb listings dropped by 80 percent between August 2023 and October 2023 — from 22,434 in August to just 3,227 by October according to AirDNA. That doesn’t include short-term rentals on other platforms such as VRBO, which are also affected by the new regulations.

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Property Chomp's Take:

New York City has made significant progress in implementing its new regulations on short-term rentals. According to data provided by the city's Office of Special Enforcement, 90 percent of applications from potential short-term rental hosts have been ruled on, with 22 percent approved and 16 percent rejected.

The new regulations, which were implemented nearly five months ago, require all rental operators to register their units with the city. This is a key requirement for anyone looking to rent out their property for short periods of time. The aim of this regulation is to ensure that hosts are complying with the law and to prevent any illegal or unsafe rental practices.

Of the applications that have been ruled on, 53 percent were returned to applicants for corrections or additional information. This highlights the importance of accurately completing the application process and providing all necessary documentation. Some common reasons for rejections include listing public housing units or rent-controlled units, both of which are prohibited for short-term rentals. Other reasons include listing buildings that are on the prohibited buildings list or having rental leases that prohibit short-term use.

The approval process involves verifying the identity and location of the host and confirming compliance with the new law. This includes checking if the host actually lives in the unit they wish to rent, ensuring the unit is not subject to rent regulations or any other restrictions, and inspecting the unit for safety violations.

Under New York's Local Law 18, residents are prohibited from renting out their entire home or apartment for fewer than 30 days. Instead, only sections of homes can be rented out, and hosts must be present in the property for stays of fewer than 30 days. This law has had a significant impact on short-term rental platforms like Airbnb, with the number of listings dropping by 80 percent between August and October 2023.

While Airbnb has criticized the law as a de facto ban on its business in New York City, the city remains committed to enforcing the regulations. The Office of Special Enforcement continues to process applications and ensure that hosts are complying with the law. This is an important step in maintaining the integrity and safety of the short-term rental market in the city.

In conclusion, New York City's progress in ruling on applications from potential short-term rental hosts is a positive development. By enforcing the new regulations, the city aims to protect residents and visitors by ensuring that rental units meet safety standards and comply with the law. As the implementation process continues, it will be interesting to see how the short-term rental market in New York City evolves.

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