Navigating Mid-Term Rentals in New York: Key Regulations and Lease Essentials for Landlords

New York has stringent regulations for mid-term rentals (leases between one and six months) that landlords must follow to ensure compliance with state laws. This article outlines the key aspects of New York's rental regulations and provides detailed guidance on the provisions landlords should include in mid-term rental leases.

1. Short-Term Rental Restrictions

• Overview: In New York City, renting out a unit for less than 30 days is highly restricted unless the host is present in the unit.
  
• Action for Landlords: Clearly state in the lease that short-term subletting or rental of the unit (under 30 days) is not permitted unless the landlord resides in the unit.
  

2. Security Deposit Limits

• Overview: New York caps security deposits at one month's rent. Additional restrictions apply to rent-stabilized apartments.
  
• Action for Landlords: Include a provision that specifies the security deposit amount (not exceeding one month’s rent) and outline the conditions under which deductions may be made.
  

3. Security Deposit Return

• Overview: Landlords must return the security deposit within 14 days after the tenant vacates, along with an itemized list of deductions.
  
• Action for Landlords: Include a clause in the lease specifying that the deposit will be returned within 14 days and list the potential reasons for deductions (e.g., unpaid rent, damages beyond normal wear and tear).
  

4. Notice for Rent Increases

• Overview: For month-to-month tenancies, New York law requires landlords to give 30 days’ written notice before increasing the rent.
  
• Action for Landlords: Include a provision detailing the required notice period for any rent increase and clarify whether the property is subject to rent stabilization or control, as these may impose additional restrictions.
  

5. Eviction Process

• Overview: New York requires landlords to provide a 14-day notice for non-payment of rent before initiating eviction proceedings. For other lease violations, a 30-day notice is required.
  
• Action for Landlords: Specify in the lease the notice period for non-payment of rent and other lease violations to ensure the tenant is informed of the legal procedures.
  

6. Right to Repair and Deduct

• Overview: Tenants in New York have the right to make necessary repairs and deduct the cost from the rent if the landlord fails to address issues in a timely manner.
  
• Action for Landlords: Clearly outline the landlord’s repair obligations and the tenant’s right to repair in case of an emergency. State any limitations on the scope of repairs tenants may undertake.
  

7. Late Fees

• Overview: Late fees in New York cannot exceed 5% of the monthly rent and must be clearly outlined in the lease.
  
• Action for Landlords: Include a provision specifying the late fee percentage (up to 5%) and when it will apply. It is also advisable to include a grace period (commonly 5 days) before late fees are imposed.
  

8. Tenant's Right to Terminate Lease for Domestic Violence

• Overview: Tenants who are victims of domestic violence may terminate their lease early with appropriate documentation, such as a restraining order.
  
• Action for Landlords: Include a clause allowing early termination for tenants who provide documentation proving they are victims of domestic violence, ensuring compliance with state law.
  

9. Lead-Based Paint Disclosure

• Overview: Federal law requires landlords to disclose known lead-based paint hazards for properties built before 1978.
  
• Action for Landlords: Ensure that your lease includes a lead-based paint disclosure for any properties built before 1978, along with an EPA-approved pamphlet on lead safety.
  

10. Landlord Access to Property

• Overview: Landlords must provide tenants with 24 hours’ notice before entering the rental property, except in emergencies.
  
• Action for Landlords: Include a clause in the lease specifying the notice period required for property access and outlining the types of situations where emergency access is permitted.
  

11. Rental Agreements and Lease Terms

• Overview: Rental agreements for leases longer than one year must be in writing. Although not required by law for shorter terms, a written lease is strongly recommended for mid-term rentals.
  
• Action for Landlords: Draft a written lease agreement, even for mid-term rentals, to clarify the terms of the tenancy and protect both parties in the event of a dispute.
  

12. Use of Security Deposits

• Overview: Security deposits can only be used to cover unpaid rent, damage beyond normal wear and tear, and other lease violations. An itemized list of deductions must accompany the deposit return.
  
• Action for Landlords: Include a detailed provision explaining how the security deposit may be used and specify that an itemized statement will be provided within the 14-day return period.
  

13. Foreclosure and Tenant Rights

• Overview: Tenants are entitled to 90 days’ notice to vacate if the property is foreclosed and they have a valid lease.
  
• Action for Landlords: Ensure the lease includes a foreclosure protection clause, stating that tenants will receive 90 days' notice if the property is subject to foreclosure.
  

14. Rent Stabilization and Rent Control

• Overview: Many residential units in New York are subject to rent stabilization or rent control laws, which limit rent increases and provide additional protections to tenants.
  
• Action for Landlords: If applicable, include provisions that outline how rent stabilization or rent control laws affect the tenancy and rent increases.
  

15. Retaliatory Eviction Protection

• Overview: New York law prohibits retaliatory evictions, ensuring that tenants cannot be evicted for exercising their legal rights, such as requesting repairs or reporting code violations.
  
• Action for Landlords: Include a non-retaliation clause affirming the tenant’s right to report issues without fear of eviction.
  

Conclusion
New York’s mid-term rental regulations are comprehensive, providing strong tenant protections and specific obligations for landlords. When drafting a lease for a mid-term rental, it's important to address these state-specific laws clearly in the agreement to ensure compliance and avoid disputes. By incorporating the appropriate provisions, landlords can protect their property interests while maintaining a legally sound and tenant-friendly rental agreement.