NYC Short Term Rental Law at Three: What Changes in October

New York City's short term rental registration law has now been enforced for three years. Local Law 18 of 2022 was adopted on January 9, 2022, and the city began blocking unregistered bookings on September 5, 2023, according to the Office of Special Enforcement's registration page. The third anniversary lands this Friday, September 5, 2026.

The law's mechanics are settled. Its politics are not. The reform bill that host groups spent 2025 backing died when the Council session ended in December, and its successor is starting over in committee with six sponsors. At the same time, the first registered hosts are approaching something the law has never tested: renewals, which OSE expects to begin accepting in October 2026.

Whether you host in the five boroughs, gave up on the city and moved to 30 day stays, or operate somewhere that is copying the NYC model, this is where the law stands three years in: what it requires, what enforcement has produced by the city's own numbers, where reform actually sits, and what registered hosts should do before the renewal window opens.

Key facts

• Local Law 18 was adopted on January 9, 2022, and platform verification of registrations began on September 5, 2023, per the NYC Office of Special Enforcement.
• The city's FY25 report, released September 3, 2025, counts about 3,000 active registrations, a 40 percent approval rate, over 4,300 denied applications, and more than 21,000 buildings on the prohibited list, per the Mayor's Office of Criminal Justice.
• Registrations run four years, and OSE says renewal applications are expected to begin in October 2026.
• Reform bill Int 879 was introduced on April 30, 2026 with six sponsors and has not had a committee hearing, per the City Council record.
• Booking platforms face civil penalties of up to $1,500 per unauthorized transaction, and host fines run from $100 to $5,000 depending on the violation and count, per the final rules.

What Local Law 18 actually requires

A short term rental in New York City means any rental of a home or apartment for fewer than 30 days. Hosting one legally requires registering with the Office of Special Enforcement, and the law bars Airbnb, Vrbo, Booking.com, and every other booking service from processing transactions for unregistered listings, per OSE.

Registration does not loosen the underlying occupancy rules, which are what pushed most listings out of the market. OSE's FAQ for prospective hosts states the three conditions plainly: short term rentals are permitted only if you are staying in the same unit as your guests, you have no more than two paying guests at a time, and your guests have access to all parts of the dwelling unit. A bedroom door that locks behind a departing guest fails that access test, in OSE's own example. Those occupancy limits, not the $145 fee, are what emptied the market — the same pattern Haven Research measures across U.S. short-term rental regimes.

The paperwork side comes from the final rules: a $145 application fee, a four year registration term under section 21-05, and renewals accepted beginning 180 days before expiration under section 21-07. Host penalties under section 21-13 start at $100 for a cured first violation and escalate to $5,000 for a third or later violation left uncured. Booking services that process an unauthorized transaction face up to $1,500 per transaction, or three times the fee they collected.

Three years of enforcement, by the city's own numbers

The most reliable numbers come from the city's FY25 registration report, released September 3, 2025. The city estimated 60,000 illegal listings on major platforms in 2018 and counted over 38,000 active listings on a single site at the start of 2023. As of the report, the city had about 3,000 active short term rental registrations. OSE approved 40 percent of applications received in the year covered, denied over 4,300 non-compliant applications, saw nearly 3,000 applicants fail to cure deficiencies, rejected more than 550 applications involving rent regulated units, and grew the prohibited buildings list past 21,000. Average application review time was under a week.

Set 3,000 registrations against 38,000 listings and the implied contraction is about 92 percent (3,000 divided by 38,000 is roughly 8 percent). Treat that as an approximation rather than a precise measure, because the two figures count different things: listings on one platform versus city approved registrations. Airbnb's own advocacy page claims over a 90 percent decrease in short term rentals, which points the same direction.

Enforcement has also turned from blocking bookings to punishing operators. OSE's news page traces the escalation: the first lawsuit brought under Local Law 18, against a short term rental operator, on May 12, 2025; a $152,000 settlement with Kiki Club announced November 18, 2025; a multi-million dollar suit over illegal rentals in rent stabilized buildings filed February 7, 2026; and an April 16, 2026 suit against a landlord accused of converting entire buildings into illegal short term rentals.

Registered hosts are not exempt from the pressure. OSE's enforcement page says that as of early June 2025 approximately 20 percent of registered listings were offering illegal occupancy, and that the agency began issuing formal revocation notices to violating hosts in a pilot that started in late April 2025.

Where the reform bill actually stands

Much of the coverage you will find on NYC short term rental reform is out of date, so here is the current record.

The 2025 reform vehicle was Int 1107-2024, introduced on November 13, 2024. It would have let owner occupants of one and two family homes host without being present, raised the guest cap, and relaxed the locked door rule. It never reached a vote. The Council record shows it was filed at the end of the session on December 31, 2025, with seven sponsors. Some circulating summaries credit the bill with far more sponsors than the Council record shows, which is one more reason to read the record itself.

Its successor is Int 879-2026, introduced by Council Member Mercedes Narcisse on April 30, 2026 and referred to the Committee on Housing and Buildings, per the Council record. It has six sponsors: Narcisse, Kevin Riley, Selvena Brooks-Powers, Farah Louis, Oswald Feliz, and Althea Stevens. It has not had a committee hearing as of August 31, 2026.

Int 879 would make three changes, and only for owner occupied one and two family homes: raise the permitted number of paying guests to four, not counting children under 18; drop the requirement that the owner be physically present during the stay; and allow locked doors on private bedrooms, bathrooms, closets, and storage areas as long as emergency egress is preserved. The registration system, the platform verification requirement, and the prohibited buildings list would all remain. Apartment dwellers would see no change at all.

Airbnb continues to campaign for reform, citing a citywide average rent of $3,730, up 8.1 percent since 2023, and hotel costs up 12.6 percent in two years. Those are Airbnb's figures, published September 3, 2025 as part of its advocacy effort, and worth reading as such.

Renewals begin in October 2026: what registered hosts should do

If you hold one of the roughly 3,000 active registrations, the four year clock is now working against you. OSE's enforcement page says renewal applications are expected to begin in October 2026. The timing follows from the rules: the first registrations were approved in 2023, four year terms from those approvals begin expiring in 2027, and section 21-07 accepts renewals starting 180 days before expiration. Six months ahead of a spring 2027 expiration is fall 2026.

Expect renewal review to be tougher than your original application. OSE has already found that about 20 percent of registered listings offered illegal occupancy, and its warning notices explicitly list denial of future renewal applications among the consequences, per the enforcement page. Before your window opens, confirm your registration status and expiration in OSE's registration dataset, last refreshed on January 7, 2026. Fix anything that has drifted from your application: guest counts in your listing, locks added since inspection, changes in who actually lives in the unit. A tenant host should also check the lease, because a tenant's registration runs only to the end of the lease term demonstrated to OSE.

What the NYC model exports to other cities

NYC pioneered the two tools that now define strict STR regimes: platform verification at the point of booking, and a building level prohibition list. Three years of the city blocking transactions before they happen, rather than fining hosts after, is the proof of concept other governments cite. The Fifth Circuit's August 2026 decision on New Orleans' rules shows how much of this model courts are willing to bless, and Clark County, Nevada adopted platform level booking verification of its own this month. Our 2026 state by state guide tracks which legislatures are moving the other way, toward preempting local rules like these.

What to watch next

Four dates and documents will tell you where this goes. First, any Housing and Buildings Committee hearing on Int 879; none is scheduled as of August 31, 2026. Second, the FY26 registration report, due around September if the city repeats last year's September 3 release. Third, the pace of renewals once the window opens in October 2026. Fourth, the next refresh of the registration dataset, last updated January 7, 2026. NYC rental owners should also note the separate pied-a-terre tax filing deadline of September 18, 2026, which is unrelated to Local Law 18 but hits some of the same owners.

For hosts, the practical lesson of three years of Local Law 18 is about dependency. Hosts who relied entirely on Airbnb's marketplace lost their NYC business overnight in September 2023, while operators who owned their guest relationships could pivot those guests to legal 30 day stays or properties outside the city. That is the argument for holding your guest list and booking channel yourself, whatever your market's rules. Haven builds branded direct booking websites for short term rental hosts with no booking commission, where the guest data belongs to you.

FAQ

Is Airbnb still effectively banned in New York City in 2026?

Unregistered short term rentals remain illegal, and platforms cannot process bookings for them. Legal hosted stays still require the host present, no more than two paying guests, and guest access to the whole unit. About 3,000 registrations exist citywide, against more than 38,000 listings in early 2023, so for most apartments the practical answer is yes.

Can I rent my NYC apartment on Airbnb while I am away?

No. Stays under 30 days require you to be staying in the same unit as your guests, per OSE's rules. Int 879 would relax this only for owner occupants of one and two family homes, and that bill sits in committee without a hearing as of August 31, 2026.

How long is an NYC short term rental registration valid, and when do renewals start?

Four years, or until the end of a tenant host's demonstrated lease. Renewals are accepted beginning 180 days before expiration, and OSE expects the first renewal applications in October 2026.

Did Intro 1107 pass?

No. It was filed at the end of the Council session on December 31, 2025 without a vote. Its successor, Int 879-2026, was introduced on April 30, 2026 with six sponsors and is in the Committee on Housing and Buildings.

What happens if a platform books an unregistered NYC listing?

The booking service is liable for a civil penalty of up to $1,500 per unauthorized transaction, or three times the fee it collected. Hosts face separate fines from $100 to $5,000 depending on the violation and how many times it has occurred.