Short-term rental properties are a source of income for many people, partly because the owner can make an income from a property that would likely be empty. Since there’s no long-term lease for the home, the owner can adjust the rental price based on the current market conditions.
Anyone who’s thinking about getting into short-term rentals in New York must ensure they take the proper steps before listing a property as a short-term rental.
Regulations vary by location
Short-term rental regulations are set by local governing authorities. These can vary greatly, so it’s best to contact the local authorities to determine what’s required. For example, New York City prohibits people from renting properties for less than 30 days if the building has at least three units. The only exception to this is if the permanent tenant of the unit is also present during the short-term rental.
Other municipalities may have their own zoning codes and registration requirements for these rentals. Short-term rentals are outlawed in some municipalities. It’s crucial that owners comply with the laws and codes in the location of the rental.
Insurance requirements vary
Short-term rental owners should evaluate their insurance coverage. Many standard homeowners’ policies don’t cover rental activities, so they may need a rider or a separate short-term rental policy to protect against guest-related damage or liability.
Working with someone familiar with short-term rental and other real property matters may be beneficial for people who want to enter into this market. It’s a good idea to do this before officially offering a property for rent.