New York splits sharply. New York City has effectively ended conventional short-term rental operation through a registration law that platforms must enforce, while upstate vacation markets in the Catskills, Adirondacks and Finger Lakes are governed by local rules that vary widely.
Where the state stands
Short-term rental rules change frequently and the controlling rule is usually local, not statewide. Treat this as orientation, then verify the current ordinance with the city or county directly, and read any homeowner association or condominium declaration separately. This is not legal advice.
New York City Local Law 18 requires host registration and prohibits booking platforms from processing transactions for unregistered listings. Combined with existing multiple dwelling law, it has effectively ended most short-term rental activity in the city.
The city's rules require the host to be present during the stay and limit occupancy to two guests, which excludes conventional whole-unit investment rentals.
Upstate markets are regulated at the town and county level, with substantial variation. Several Catskills and Hudson Valley towns have adopted permit caps.
The details that matter
- Some upstate lake and Adirondack communities have adopted restrictions in response to housing pressure.
- State and local sales tax plus county occupancy taxes apply.
- For investors, New York City should be treated as closed to conventional short-term rental investment, and upstate purchases require town-level verification.
City and county positions
Regulation in New York is decided locally far more than at the state level. The table below is orientation, not a substitute for calling the jurisdiction.
| Jurisdiction | Position | Investor risk |
|---|---|---|
| New York City | Local Law 18 registration; host presence required | Effectively closed |
| Catskills towns | Permit programs, several with caps | Moderate to high |
| Hudson Valley | Town-level rules, varying widely | Moderate |
| Adirondacks / Lake George | Local permit programs | Moderate |
How to verify before you write an offer
The verification sequence is the same in every state, and skipping any step is how buyers end up owning a property that cannot legally operate.
- Confirm the zoning designation for the specific parcel, not the neighborhood.
- Confirm whether short-term rental is an allowed use in that zone, and whether a permit is required.
- Confirm whether permits are capped, waitlisted, or transferable on sale.
- Read the homeowner association or condominium declaration in full. Private restrictions bind independently of any municipal rule.
- Confirm the lodging and occupancy tax registration obligations, and which taxes the booking platform collects on your behalf.
- Ask the jurisdiction directly, in writing, and keep the response.
We do this for every property we bring to a client before an offer goes out, because a property that cannot legally operate is worth its long-term rental value regardless of what the short-term proforma says.
Keep reading
Frequently asked questions
Are Airbnbs legal in New York City?
Conventional whole-unit short-term rentals are effectively prohibited. Local Law 18 requires host registration, bars platforms from processing unregistered bookings, requires the host to be present, and limits occupancy to two guests.
Where can I invest in short-term rentals in New York State?
Upstate vacation markets in the Catskills, Hudson Valley, Adirondacks and Finger Lakes, subject to town-level rules that vary widely and in several cases include permit caps.