What is the difference between home exchange and paid-for-short-term rentals?
There has been a lot of talk about short-term rental restrictions in the news lately and many home exchangers want to know how they are affected. HomeExchange thought it would be a good idea to address our members' concerns and keep them informed.
HomeExchange, as a global community and network of home exchangers, cannot administer legal advice, but we can keep our members and all NY residents informed on local legislation through the sharing of important links and information.
The second half of 2016 saw a wave of new legislation in cities around the world that further restricted peer-to-peer rental services. On October 21st, 2016, short-term rental services in NY took a big hit when governor Andrew Cuomo signed into law even further restrictions on the rental of "Class A" Multiple Dwellings.
The new law essentially prohibits "Class A" Multiple dwellings - a dwelling for permanent residence purposes that includes tenements, flat houses, apartments of all kinds (ex. bachelor apartment, studio apartment, etc...) - from advertising short-term rental offers of less than 30 days. Renting out your residence for less than 30 days has actually been illegal for quite some time, but by targeting the advertisement of these spaces, regulators are able to monitor websites that propose these services and find the perpetrators more easily.
The fine for advertising with a short-term rental service can also set you back a couple of thousand dollars and offset any financial earnings made with your short term rental:
The First offense: $1,000
The Second offense: $5,000
The Third offense: $7,500
Where does home exchange fall in all of this?
The question that many of our members are probably asking themselves: Where does home exchange fall in all of this? The good news, and one of the reasons we love home exchange so much, is that there are no financial transactions between members, which means exchanging your home would not technically fall under the short-term rental restrictions. There is actually a section in the New York State Multiple Dwelling Law that clearly protects home exchangers.
We are sure not many people are interested in reading a 158 page document on housing laws, so we provided the important sections that pertain to home exchange below...
(B) incidental and occasional occupancy of such dwelling unit for fewer than thirty consecutive days by other natural persons when the permanent occupants are temporarily absent for personal reasons such as vacation or medical treatment, provided that there is no monetary compensation paid to the permanent occupants for such occupancy.
While looking over the above excerpt it can be concluded that home exchange shouldn't face any issues with current restrictions in the state of NY, but home owners and tenants should not forget to respect their leases, contracts, and other rules set forth by the condo or development they live in. We also recommend that home owners and tenants that participate in home exchange communities be as transparent as possible with their building's Board and neighbors.
As things continue to get more difficult for "paid-for-short-term rentals" we want to remind people that there are other travel options. Home exchange will not make you rich, but it will save you loads of money on your next vacation and you will obtain a wealth of experiences, culture and adventures that will last you a lifetime. It takes nothing to get started...