Airbnb rules on a 3 family

Hello Brownstoner,
We have a 3 family home with one vacant apartment and were kicking around the idea of renting one of the units as a short term rental. We occupy the parlor ground and finished cellar and have a tenant on the top floor. The middle floor is currently empty. I came across this article

http://www.nolo.com/legal-encyclopedia/overview-airbnb-law-new-york-city.html

and wanted to know the forums opinion. The way I read this law, it states that if 3 or more families reside in the residence. The house is a legal 3 but only 2 of the units are occupied. My questions are as follows :

1. Can I rent out both apartments Airbnb for short term rental if the top floor tenants ended up leaving eventually?

2. What if we kept the top floor permanent tenants and rented our middle floor as a short term rental and we occupied our 3 lower floors permanently? Is this allowed?

3. If anyone has rented Airbnb, how do you like it and what would you say the average occupancy rate is throughout the year in Bed Stuy?

Thanks for your input!

stuyheights

in General Discussion 9 years and 1 month ago

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lamb | 9 years and 1 month ago

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it is a clear violation of multiple dwelling law to rent an entire unit for less than 30 days… I would have happily done so when I still owned my 3 fam, but didn’t want to lock in 12 month leases bc I was planning to sell in less than a year. 3 fam’s are multiple dwellings and a little research made it clear that there’s really no grey area. you can play the odds that you won’t get caught if you so choose, but you have zero grounds to back yourself up if you’re ever called out.

mattia.alfa | 9 years and 1 month ago

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Oh man that’s a fun worst case scenario.

So since we are giving kinda legal advice if someone should break the law ….

As a scam artist what would I need to do to stay in an apartment of someone for free for an extended amount of time if they are illegally renting an Airbnb?

valerieniosi | 9 years and 1 month ago

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If it is technically illegal does the owner have any recourse if the renter skips out on payment or does not pay for damages? Ie u cannot sue me cause I can report u.

valerieniosi | 9 years and 1 month ago

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If it is technically illegal does the owner have any recourse if the renter skips out on payment or does not pay for damages? Ie u cannot sue me cause I can report u.

Boerumresident | 9 years and 1 month ago

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Bedstuy13 is probably wrong about the law, but probably right about the financial benefit and risk/reward. There is a low likelihood that the City will crack down on Airbnb rentals in non-rent stabilized buildings or large apartment buildings. However, as pointed out, I don’t think the owners would stand a chance in court if the City came along with big fines for people operating businesses in residential houses while being out of complaince with building codes etc.

Also don’t forget the tax collection aspect.

stuyheights | 9 years and 1 month ago

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I would agree as well resident2…. Now the real curve ball comes into play if you don’t have a CO but when push comes to shove i don’t think that would hold up in court. So many people are renting out illegal apartments on Airbnb for short term rentals. Its all fun and games until someone loses an eye (or gets slapped with a 10k fine). Then we will see if the income generated was greater then having a long term tenant. I personally find it too risky although I would have to agree with DIBS. I do not have any moral dilemma going on.

rastermon | 9 years and 1 month ago

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resident2, read the NYC building code chapter 3, section 310 – transient occupancy is not legal in 1- and 2- family homes either – it would be a building code violation

daveinbedstuy | 9 years and 1 month ago

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That’s how I read it as well, resident2

resident2 | 9 years and 1 month ago

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Renting one apartment in a three family house ( a multiple dwelling) to transient tenants is NOT legal as per HPD and building codes.
If you are renting one of your bedrooms in a two bedroom apartment within a three family house, that would be allowed because you are in occupancy. You being in a different apartment does not clear you of your occupancy requirement to be present.
The point of this law is to preserve long term rental housing as well as other health and safety issues.
If you have an owner occupied two family house; OK to rent out the second apartment to transients because a two family is not a multiple dwelling under HPD and building codes. If you have a one family with a live in maids auxiliary use, you can rent out the maids space to temporary tenants so long as you are in occupancy……. but a three family with a C of O as a 3 family… NO.
I know it is done all the time…. but it is not legal and if you have a fire or some other emergency issue, your insurance may well not cover it.

daveinbedstuy | 9 years and 1 month ago

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A moral aspect to real estate in NYC?? LOL

mattia.alfa | 9 years and 1 month ago

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legality aside – i think there’s a moral aspect to it – city is in a housing crisis and you’re effectively taking a unit of housing off the market for working new yorkers who pay taxes and support the local economy and renting it to a transient/tourist. bad neighbor

slopefarm | 9 years and 1 month ago

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The fact that bedstuy13 does it is not an argument that it is completely legal. I would be curious to read the legal analysis that demonstrates that it is legal. According to AG report, it is not.

mattia.alfa | 9 years and 1 month ago

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” I rent out 2 of my 3 unit house on Airbnb. The demand is huge; mine always rented out and they bring in about double what I use to receive from my previous longer term tenants.”

i really can’t wait til Schneiderman puts and end to this nonsense.

bedstuy13 | 9 years and 1 month ago

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Completely legal. You are renting part of your house.
Join the club and you’ll be very satisfied – I rent out 2 of my 3 unit house on Airbnb. The demand is huge; mine always rented out and they bring in about double what I use to receive from my previous longer term tenants.

rastermon | 9 years and 1 month ago

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For a 1- or 2-family it would be a building code violation to rent for transient occupancy– see the use and occupancy classifications, section 310

stuyheights | 9 years and 1 month ago

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Thanks again Slope. I actually sent your info over to my attorney to take a look at and voice an opinion. Ill let you know what he says.

slopefarm | 9 years and 1 month ago

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just — MDL might not apply, but it may still violate C/O to do it. See Ed’s comment and the AG’s report that I linked above. You have to read all of the applicable laws, not just one of them.

stuyheights | 9 years and 1 month ago

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CarmenR- I dont agree. That is not how I read the law. I dont think a 2 family is in question

CarmenR | 9 years and 1 month ago

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brooklyntoqueens if it is for less than 30 days, it is not legal.