The rise of short-term rental platforms has created a significant challenge for condominium and cooperative boards across New York. While such rentals can offer convenience for property owners, they often bring about security concerns, increased wear and tear, and potential legal issues for the building’s permanent residents. As a result, many boards seek to restrict or completely prohibit short-term rentals in their buildings. Here are some effective strategies that condo and coop boards can implement to address this issue:
1. Review Governing Documents and Local Laws The first step for any board is to review their building’s governing documents, such as the by-laws, proprietary lease, house rules, and declaration. These documents may already contain provisions that limit leasing arrangements, including short-term rentals. In addition, boards should familiarize themselves with local laws and zoning regulations that might restrict or regulate short-term rentals.
2. Amend Governing Documents If the current governing documents do not adequately address short-term rentals, the board can propose amendments to explicitly prohibit or limit these arrangements. For condominiums, this might mean amending the declaration or by-laws, which typically requires a supermajority vote from the unit owners. In cooperatives, the proprietary lease and house rules can be amended to include specific language that restricts short-term leasing.
3. Establish Clear Definitions and Policies To enforce any restrictions effectively, boards must clearly define what constitutes a short-term rental. A common benchmark is to set a minimum rental period, such as 30 days, to distinguish between permissible and impermissible leases. The board should also develop consistent policies regarding leasing and communicate these to all residents to ensure understanding and compliance.
4. Implement Monitoring and Enforcement Mechanisms Boards should establish a system to monitor compliance with leasing policies. This could include requiring owners to provide copies of lease agreements for review or implementing a registration system for all tenants. Enforcement mechanisms can range from fines for non-compliance to legal action if necessary. In New York, if short term renting is not permitted under the governing documents, the condo or coop can register their building on the NYC Office of Special Enforcement’s Prohibited Building List which tells the world including short term rental sites like Airbnb and VRBO that apartments in those buildings cannot be rented on a short-term basis (https://www.nyc.gov/site/specialenforcement/registration-law/pbl.page).
5. Educate Unit Owners and Shareholders Education is key to gaining support for any restrictions on short-term rentals. Boards should explain the potential negative impacts of short-term rentals on the community, such as security risks, increased maintenance costs, and the possible devaluation of properties. Informing unit owners and shareholders of these concerns can help foster a cooperative environment where everyone is invested in protecting the integrity of their building.
6. Work with Local Authorities In some cases, it may be beneficial for boards to work with local authorities to address short-term rental issues. This can include reporting illegal short-term rentals to law enforcement or building inspectors if they violate local housing codes or ordinances.
7. Seek Legal Counsel Before implementing any of the above strategies, it is crucial to seek advice from an attorney who specializes in condominium and cooperative law. Legal counsel can guide boards through the process of amending governing documents, ensure compliance with state and local laws, and provide assistance in the event of any disputes.
In conclusion, while the proliferation of short-term rentals presents a challenge for New York condo and coop boards, there are multiple proactive steps that can be taken to mitigate their impact. By carefully crafting and enforcing clear policies, and with the support of legal professionals, boards can uphold the quality of life in their buildings and maintain a stable residential community.
