Airbnb Rules in New York City (NYC): Complete Compliance Guide for Hosts

New York City’s short-term rental laws have become some of the most restrictive in the U.S., especially after the passage of Local Law 18 of 2022. As of 2025, hosts operating anywhere within the five boroughs must comply with strict registration, owner-occupancy, guest-limits and tax-reporting rules. This guide outlines the full legal requirements for operating a short-term rental (STR) in New York City — from registration through ongoing compliance.

What this guide covers:

This resource details New York City’s short-term rental registration requirements, owner-occupancy and building-class restrictions, tax and reporting obligations (state and city), safety and building-code standards, enforcement mechanisms and penalty structures. It is intended strictly for legal compliance.

Who this is for:

This guide is designed for current or prospective New York City short-term rental hosts, property owners evaluating vacation rental operations and real-estate investors seeking to understand NYC’s short-term rental landscape. Whether you’re launching your first listing or reviewing ongoing compliance, you’ll find actionable regulatory guidance here.

Why this matters:

After Local Law 18 went into effect in September 2023, listings in New York City plunged by over 90% and enforcement ramped up sharply. Non-compliance can lead to heavy fines, platform delisting or short-term rental license revocation. Staying ahead of the rules is critical.

What you’ll learn:

• NYC’s owner-occupancy requirement and building-class restrictions

• The full registration/process path under Local Law 18

• The state-level tax and reporting changes coming into effect in 2025

• Ongoing operational standards, building/safety code compliance

• Common compliance pitfalls and how to avoid them

• Penalties and enforcement actions hosts may face

Understanding NYC’s Short-Term Rental Legal Framework

Definition and scope

In New York City, a short-term rental typically refers to rental of a dwelling unit or part of a dwelling for fewer than 30 consecutive days. At the same time, the broader state-level framework distinguishes stays under 30 days (or fewer than 90 days for tax purposes) for regulation.

Owner-occupancy and building-class restrictions

One of the core distinctions: Most residential units in New York City cannot be legally used as full short-term rental units unless very specific criteria are met:

• The Airbnb rental must be such that the primary resident/host is present and shares the space while the guest stays. Entire-unit short-term rentals (without the host present) are broadly prohibited in many residential multifamily properties.

• The permanent resident must generally be present in the unit during the guest stay (so the unit remains the host’s primary residence during that period).

• In buildings classified as "Class A" multiple dwellings under the Multiple Dwelling Law (which covers most multifamily residential buildings), short-term rentals are heavily restricted or forbidden.

• Guests must have free, unobstructed access to all rooms and exits — internal door locks that prevent this may trigger illegality.

These rules reflect the city’s intent to distinguish genuine home-sharing (owner-occupied) from de facto hotel or investment-property operations. The regulatory framework thereby aims to preserve long-term housing availability.

Legal foundation and timing

The short-term rental registration law for New York City, Local Law 18 of 2022, took effect on Sept 5, 2023. At the state level, a new registry law (S.885C/A.4130C) signed 21 Dec 2024 takes full effect in 2025, establishing statewide reporting obligations and tax-collection frameworks for short-term rental booking platforms.

In sum, the regulatory framework combines New York City municipal regulation (owner-occupied, registration, building-class rules) and New York State rules (tax/remittance reporting for platforms and hosts, statewide registry option). For prospective and current New York City property managers, this means you should always consider both layers.

Short-Term Rental Registration and Application Process in NYC

Registration requirement under Local Law 18

Under Local Law 18, any host wishing to offer a short-term rental (unit for fewer than 30 days) in New York City must register with the Mayor’s Office of Special Enforcement (OSE) before listing on platforms. Platforms (such as Airbnb, Vrbo) are prohibited from processing bookings for unregistered hosts.

Documentation and eligibility

To meet registration requirements, hosts must demonstrate:

• That the dwelling unit is a legal residential unit, the host resides there and the host will be present for the guest stay (in many cases).

• The building’s classification: Units in rent-regulated buildings, co-ops with prohibitions on short-term rentals or “Class A” multiple dwellings may be excluded.

• Guest access: Guests must have unobstructed access to all parts of the unit they stay in and must stay fewer than 30 days. The host should not lock off entire portions of the unit from guest access in a way that restricts emergency egress.

• Compliance with building, zoning and safety regulations applicable to residential use. (Though the specifics vary, non-compliance may result in denial of registration.)

Application fees and timeline

While the New York City code does not publish a widely-advertised flat fee for Local Law 18 registration, hosts should expect application review, possibly inspections and ongoing obligation to maintain registration status and furnish updated information if circumstances change.

Since enforcement started, OSE has reported long registration queues and many denied applications.

State-level reporting and platform obligations in 2025

From March 2025 onward, under the state legislation S.885C/A.4130C:

• Short-term rental platforms must collect and remit the 4% New York State sales tax plus applicable local sales taxes.

• Platforms must report quarterly to the state and — if opted-in — county registries, providing full location lists, occupancy nights, guest counts and taxes collected.

• Counties may establish their own short-term rental registries and collect occupancy or hotel-tax equivalent revenues from hosts.

For New York City hosts, this means even if a city registration is secured, you must ensure your listing and platform adhere to the state-tax/remittance requirements.

Operational Rules and Compliance Standards for NYC Short-Term Rentals

Owner-occupancy and guest limits

As noted above, a core requirement is that the host must reside in the dwelling during guest stays in most cases, and entire-unit short-term rentals (without host presence) are broadly disallowed in most “Class A” buildings. Furthermore, under Local Law 18, only two paying guests may stay at once in a host-occupied unit.

Building and safety standards

While New York City does not publish one unified checklist solely for short-term rentals, hosts must ensure compliance with:

• The New York City Housing Maintenance Code and other applicable building maintenance standards (e.g., functioning smoke detectors, carbon monoxide detectors, safe egress, no locked internal doors preventing emergency access, etc).

• Zoning requirements: The building must permit residential lodging of the type proposed; some zones prohibit transient lodging.

• Ensuring the host (or their agent) is on site during guest stay if required by building classification/municipal rules.

Failure to satisfy these standards can lead to registration denial, fines or listing removal.

Tax, Remittance and Financial Compliance for NYC Short-Term Rentals

Hosts (and platforms) must ensure the following:

• State sales tax (4%) plus local sales tax must be collected/ remitted for short-term rentals under 90 days per stay (state definition may differ).

• In New York City, occupancy-tax equivalents and local tax obligations may apply; the state law gives counties the option to collect hotel-style tax revenues.

• Platforms must report bookings and tax data, as mentioned above. This means host listings must be accurately reported and all required tax forms filed timely.

• From the host side: Retain documentation of your stay records, tax remittances, registration certificate and compliance evidence in case of audit.

Transition to Ongoing Compliance

Once registered, vacation rental hosts must maintain eligibility and compliance. Notable ongoing obligations include:

• If the short-term rental host ceases residing at the dwelling, or the unit is no longer owner-occupied during guest stays, the registration may no longer be valid.

• Any change of status (e.g., building classification change, building becomes rent-regulated or adopts prohibition on short-term rentals) must be captured and corrected.

• Platforms listing your unit must verify your registration number and ensure you have a short-term rental permit under the law. If you listing through a booking platform without registration, you (and the platform) risk enforcement.

• Keep records of guest stays, bookings, tax remittances and registration status. Enforcement actions often pivot on documentation lapses.

Common Challenges and Solutions for Hosting New York Short-Term Rentals

Challenge 1: Owner-absence or entire-unit bookings

Solution: If you’re not present during the guest stay, or you rent out the entire unit when you’re away, you likely fall outside the narrow “host-occupied” exception and may be in violation of Local Law 18. Consider converting to longer-term rental (≥ 30 days) or ensure you remain present and meet all host-occupancy criteria.

Challenge 2: Misclassification of building or unit

Solution: Confirm your building’s status. Is it a “Class A” multiple dwelling, rent-regulated or listed in the city’s Prohibited Buildings List for short-term rentals? If so, short-term rental may be illegal in that unit. Consult building records or engage legal/short-term rental compliance counsel.

Challenge 3: Platform-tax/Reporting confusion

Solution: Even if your platform claims to collect taxes or report data on your behalf, you are legally responsible for ensuring full compliance with state and local requirements. Retain copies of platform tax filings, registration confirmation, quarterly reports and reconcile yourself.

Challenge 4: Neighbor complaints & enforcement

Solution: Because New York short-term rental enforcement often begins with complaints (noise, unauthorized occupancy, building code violations), maintain clear guest rules, ensure compliance with building regulations, keep strong guest screening and have visible host-oversight during stays.

Penalties and Enforcement Actions

Non-compliance with New York City Council short-term rental laws and New York short-term rental regulations can trigger serious consequences:

• Operating or listing a short-term rental unit without an approved registration number may result in fines, listing removal and legal action.

• Violation of guest-limits (more than two guests), short-term rental hosting without resident presence (when required) or listing an entire unit illegally may trigger fines or revocation of registration.

• Platforms that list unregistered vacation rental units can also face liabilities, which increases the risk for hosts.

• Because of the recent state-law rollout, hosts may face tax audits if tax collection or remittance appears deficient.

To continue legally, hosts must take all compliance steps seriously and document each layer of registration, building classification, host-presence, guest-counts and tax reporting.

Conclusion and Next Steps

New York City’s short-term rental regulations create a highly restrictive but actionable compliance framework for hosts operating from their own residences. To get started:

1. Confirm your property qualifies under Local Law 18 (owner-occupied, building classification, host present during stay).

2. Register with the OSE and obtain the registration number before listing on platforms.

3. Ensure your listing, platform and tax setup conform with state-level rules effective March 2025 (platform tax collection/reporting, stay <90 days tax definition, etc.).

4. Maintain pristine documentation: registration certificate, host-residence evidence, guest logs, tax filings.

5. Stay alert to legislative developments: For example, Intro. 1107 has been proposed to loosen some host-presence and guest-limit rules for 1-2 family homes.

Related Topics: For hosts operating in multiple cities or states, compare New York City’s stricter owner-occupancy and registration model with other jurisdictions. For New York City hosts, keep updated on the platform-reporting regime under New York State and consider consulting with a tax advisor experienced in vacation-rental tax compliance.

FAQs

Is Airbnb legal in New York City in 2025?

Yes, Airbnb is legal in New York City, but only under strict conditions. Short-term rental hosts must register with the Office of Special Enforcement (OSE), live in the property as their primary residence. be physically present during guest stays and follow all NYC vacation rental laws. Entire-apartment short-term rentals (under 30 days) are illegal in most buildings.

What is Local Law 18 and how does it affect hosts?

Local Law 18 (effective 2023) requires all hosts offering stays of fewer than 30 days to:

• Register with OSE,

• Be present during the stay,

• Accept no more than two guests, and

• Comply with strict safety and building requirements. Platforms like Airbnb cannot process reservations without a valid registration number.

Can I rent my entire apartment on Airbnb when I’m not home?

No. Entire-unit rentals for stays under 30 days are banned in almost all residential buildings (Class A multiple dwellings). You must be present in the home for the duration of the guest’s stay to operate legally.

What buildings allow short-term rentals in New York City?

Short-term rentals are allowed only in specific circumstances, typically when:

• The unit is in a one- or two-family home,

• The host lives there full-time and will be on-site, and

• The building is not listed on New York City’s Prohibited Buildings List.

Most large apartment buildings, co-ops and rent-stabilized units prohibit short-term rentals.

How many short-term rental guests can I host at one time?

Local Law 18 limits hosts to a maximum of two guests, regardless of unit size. All guests must have access to every exit and cannot be locked out of any rooms needed for safe egress.

What taxes do Airbnb short-term rental businesses have to pay in New York City?

As of 2025, hosts must comply with both city and state tax rules. This includes:

• 4% New York State sales tax,

• Local sales taxes,

• New York City occupancy tax equivalents, and

• Any applicable county lodging taxes under the 2025 State Short-Term Rentals Law.

Platforms will collect and remit some taxes automatically, but hosts remain responsible for compliance.

What are the penalties for operating an illegal Airbnb short-term rental?

Penalties can be severe and include:

• Fines up to $5,000 per violation,

• Removal of your short-term rental listing from all platforms,

• Revocation of your short-term rental registration,

• Building violations for owners or tenants,

• Possible criminal liability for fraudulent submissions.

The city uses strict enforcement and platform data-sharing, making illegal operations easy to detect.