Since their insurgence over the last dozen years, Airbnb, Homeaway/VRBO and other home-sharing sites using a similar model have provided travelers all across the globe with alternative—often more affordable—accommodation to hotels, motels, inns, and B&Bs. The home-sharing model certainly has been an economic boon to budget-seeking travelers, locales with weak tourism, and property owners who use the services as an income stream. In many cases, however—particularly in larger cities in the US —renting out one’s home on a short-term basis (typically anything less than 30 days) is actually illegal. In cities like New York and its surrounding municipalities, laws precluding these types of transactions have been on the books for years; other cities have recently passed or are in the process of passing laws that are essentially reactions to the deleterious effects of home-sharing on city budgets, community character, gentrification, housing scarcity, and residential safety.
Share and Share Dislike
Like with many of the titans of the so-called 'share economy'—ride-sharing services like Uber and Lyft; office-shares like WeWork—the practical application of home-sharing has shifted from a literal 'share' to something less personal, and more transactional. Just as the car-share model has morphed from hitching a ride with a fellow commuter to basically hailing a private livery service, the typical home-share is not of the 'stay in my spare bedroom for a week' variety.
Just to give an example using the app’s biggest domestic market, according to Inside Airbnb, an independent, non-commercial set of tools and data intended to show how Airbnb is really being used in cities around the world, 51.8% of New York City’s approximately 50,000 Airbnb listings are for an entire home or apartment—and 34.1% are hosts with multiple listings (which can be multiple rooms in one home or apartment, or multiple entire apartments or homes). These data points indicate that a majority of hosts in NYC are not in occupancy when renting their rooms or apartments – which puts them in violation of the state’s Multiple Dwelling Law, the New York City Administrative Code, the New York City Zoning Resolution, and most likely the host’s own proprietary leases or condo declarations.
Therefore, residents of multifamily housing thinking of making their homes available for 'share' would do well to review their building or association’s policies first. Indeed, most co-ops forbid subletting altogether; others impose restrictions on how long a shareholder can sublet, or set durations for shareholder occupancy before the unit can be sublet, or both. Even where subletting is permitted, the bylaws dictate lease and renewal terms—usually one year at minimum—and require that all occupants be interviewed by a screening committee and approved by the board of directors.
Condos are following suit, adds Todd M. Ross of One Point Brokerage, a commercial insurance brokerage based in Manhattan. “We have also seen new condo buildings put prohibitions in their governing documents on unit owners renting units out for less than a period of one year. This gives them more leverage over any short-term rental issues that arise from unit owners.” Most condominium associations already forbid leases shorter than 30 days, and many have application procedures that are as labor- and fee-intensive as those of co-ops.