What's happening
This bill makes tenants or subtenants, not landlords, responsible for fines from illegal short-term rentals arranged through internet rental websites, unless the landlord knowingly allows it.
Why it matters
Shifts liability for illegal short-term rentals from landlords to tenants or subtenants. This bill means that if someone rents out their apartment illegally via a site like Airbnb, the person actually listing and renting out the space—not the property owner—will be responsible for paying any fines, unless the landlord was aware and allowed it to happen.
Protects landlords who are unaware of illegal activity. By specifying that landlords are only liable if they "had knowledge of and allowed" the illegal rental, the legislation encourages property owners to be proactive but does not punish them for tenant actions they did not know about or authorize.
Requires landlord cooperation in enforcement. If a tenant or subtenant responsible for an illegal rental cannot be located, landlords must provide any information they have to authorities to help track down the responsible party, making enforcement more effective.
Clarifies definitions for modern rental platforms. The bill introduces legal definitions for "short term rental unit" and "internet based residential rental website," updating state law to better address issues arising from the rise of online platforms like Airbnb and VRBO.
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Who cares
Headline styles
Tenants Liable for Illegal Rentals
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to housing, construction and community development
- Referred to housing, construction and community development
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
342
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sen. PERALTA -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development
AN ACT to amend the multiple dwelling law, in relation to the short term rental of dwelling units through internet based residential rental websites
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 4 of the multiple dwelling law is amended by adding two new subdivisions 15-a and 15-b to read as follows:
15-a. "Short term rental unit" is a class A multiple dwelling unit that is made available for rent or for hire by the tenant or legal subtenant thereof, to guests for a period of thirty consecutive days or less. Such term shall not include any rental or use of such a dwelling unit by the owner or landlord thereof.
15-b. "Internet based residential rental website" is an internet website or other electronic service that offers, promotes or provides access to the rental or use of any short term rental unit.
§ 2. The multiple dwelling law is amended by adding a new section 15 to read as follows:
§ 15. Application of chapter to certain short term rental units. 1. Notwithstanding any provision of this chapter to the contrary, in the event of a violation of the provisions of this chapter relating to a short term rental unit rented or used by guests, who used an internet based residential rental website to identify such unit, any and all fines and penalties assigned for such violation shall be imposed upon the tenant or legal subtenant who caused the short term rental unit to be rented to or used by such guests. No owner or landlord shall be liable for any such fine or penalty, unless such owner or landlord shall
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00138-01-7
S. 342 2
have had knowledge of and allowed the continuance of the short term rental of the dwelling unit.
2. Whenever the tenant or legal subtenant of a short term rental unit shall have abandoned such unit and his or her location is not available to the department, the landlord or owner of the dwelling unit shall, upon request of the department, provide all information it possesses relating to the location or potential location of such tenant or subtenant.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the multiple dwelling law, in relation to the short term rental of dwelling units through internet based residential rental websites
Purpose or general idea of bill
An act to amend the multiple dwelling law, in relation to the short term rental of dwelling units through internet based residential rental websites
Summary of specific provisions
Section 1 of the bill amends the Multiple Dwelling Law by adding two new subdivisions 15-a and 15-b, which define "short term rental unit" and "internet based residential rental website."
Section 2 amends the Multiple Dwelling Law by adding a new Section 15 which mandates that tenants and subtenants are liable for violations of the Multiple Dwelling Law pertaining to the illegal short term rental of Class A dwellings, when the legal tenant or subtenant of such premises rents their unit through an internet based residential rental service without the knowledge and consent of the property owner. The new Section 15 further mandates that when a tenant or legal subtenant has abandoned the unit in question, the property owner shall provide all information it possesses regarding the whereabouts of the tenant or legal subtenant to enforcement authorities.
Section 3 sets forth the effective date of the law.
Justification
While the regulatory debate over the legality of AirBnB and other Internet-based residential rental platforms continues in New York State, it remains the case that the rental of units in a Class A multiple dwelling (many apartment buildings, condominiums, etc.) for less than thirty days is illegal. As such, enforcement authorities have the ability to levy fines of up to $2,500 per day for violations of the Multiple Dwelling Law and currently, landlords - who are often unaware that their tenant or a legal subtenant is illegally renting their unit through these platforms - are hit with this civil penalty. As an issue of fairness, and until a regulatory framework is put in place to address this and larger issues pertaining to Internet-based residential rental platforms, it is only just that the tenant or legal subtenant soliciting and providing travelers with an illegal short-term rental is responsible for these fines.
Prior legislative history
2015-2016-S7053
Fiscal implications
None apparent to the State. The ability to levy fines for violations of the Multiple Dwelling Law is not changed, except that the liable party differs from that under current law.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.