New York City coops, condos and other community associations must take action to ensure they are in compliance with short term rental rules.  If not, it will be difficult to defend against the thousands of dollars in fines that NYC is imposing for violations. And, lack of knowledge of the illegal short term renting, is not a defense.

In response to illegal renting on short term rental sites like Airbnb, NY State and NYC has been enacting new regulations and starting to enforce them by issuing violations with significant fines.  Short term rental violations are seen as important public concern because buildings with short-term rentals in NYC and around the world are reporting that they suffer from life, health and safety problems because of transient tenancy.

NYC’s position is clearly that lack of knowledge that short term renting is happening in a building is no defense to a violation and fine. The Appeals Court in Manhattan just agreed upholding a $53,100 fine. NYC has been warning owners, property managers and hosts that violations will be issued to the property owner even if tenants are doing the illegal short term renting.  See NYC Office of Special Enforcement warning.  

The $53,100 fine against the 264 unit building at 360 West 43^rd Street in Manhattan, should be “a shot in the arm” for NYC coop and condo boards.  Even though only 3 of the 264 units were caught illegally short term renting and the owner claimed it didn’t know, NYC was steadfast in its position that  ignorance is no defense.  

According to the City, owners have the responsibility to maintain the premises and to be up to code.  For example, any transient use in the building requires full compliance with applicable fire-alarm and sprinkler requirements, and the owners are legally responsible for its tenants’ illegal use of the premises.

According to a unanimous panel of the Appellate Division, First Department, the violations issued by NYC were “supported by substantial evidence” and the building’s attempt to get out of the $53,100 fine by arguing lack of knowledge was “unavailing”.

Buildings should be taking action to bring awareness to  short term rental restrictions that apply to them.  NYC prohibits renting for less than 30 days in most cases, but a condo or coop may not allow it for less than 1 year.  It is important to make sure that people know your rental restrictions and the jurisdictional ones that apply to you.  

Know Your Rental (knowyourrental.org) is a new official building registry which buildings can use to inform people worldwide of the short term rental restrictions applicable to their building.  If you are registered and taking such proactive measures to try to comply with the law and informing the public of the short term rental restrictions, you can raise that as a part of your defense if you’re issued a NYC violation and fine. Coops, condos and community associations need to be proactive to avoid short term rental violations and the steep fines; particularly, now that lack of knowledge is not going to help them.