Overview: Are Short-Term Rentals Allowed in Albany, NY?

Yes, short-term rentals are currently allowed in Albany, NY. However, the city is actively developing new regulations and has not yet implemented a comprehensive permitting system specifically for short-term rentals. According to the City's Department of Planning & Development, the use "Short-Term Rental" is not currently a distinct use called out in the Unified Sustainable Development Ordinance (USDO), and no one has yet submitted a permit application to have an STR since typically little to no work is required to convert a residential unit for short-term rental use.

As of early 2024, Albany has approximately 455 STR listings within the city, with 76% being entire home/apartment listings and 24% being partial home/apartment listings. The city is currently in the process of studying the issue and developing appropriate regulations following community input and data analysis.

How to Start a Short-Term Rental Business in Albany, NY

Current Requirements

Since Albany has not yet implemented specific STR regulations, operators currently need to:

1. Ensure zoning compliance - Verify your property's zoning allows the intended use under current USDO regulations
2. Meet building and safety codes - Comply with all applicable building, fire, and safety requirements
3. Obtain necessary general business permits - Follow standard business registration procedures
4. Register for tax collection - Set up systems to collect and remit required taxes
5. Secure appropriate insurance - Obtain adequate liability coverage for short-term rental operations
6. Monitor regulatory developments - Stay informed about evolving city regulations

Recommended Preparation Steps

Given that new regulations are being developed:

1. Attend public meetings - Participate in city planning meetings and public forums about STR regulations
2. Review the February 2024 presentation materials available on the city website
3. Establish good neighbor relations - Address potential concerns about noise, trash, and parking proactively
4. Document compliance - Maintain records of safety measures, insurance, and operational procedures
5. Consider hiring local property management - Ensure responsive local representation for your property

Required Documents, Permits, and Licenses

Current Requirements

• Standard business registration documentation
• Property ownership verification
• Insurance documentation showing adequate liability coverage
• Tax registration for sales and occupancy taxes
• Compliance with building and fire safety codes

Anticipated Future Requirements (Based on City Planning Documents)

The city is considering implementing requirements for:

• STR-specific licensing or permitting system
• Property registration in a city database
• Safety inspections and certifications
• Local contact person designation
• Operational compliance documentation

Specific Regulations for Albany, NY

Current Regulatory Framework

City Level:

• No specific STR ordinance currently in place
• Subject to existing zoning regulations under the Unified Sustainable Development Ordinance
• Must comply with quality of life considerations under other city codes and ordinances
• 29 SeeClickFix complaints received since 2020, with 65% related to trash issues

Priority Issues Identified by the City:

1. Reduce noise and trash problems
2. Eliminate party houses
3. Reduce STR impact on neighborhood character
4. Ensure building safety
5. Improve responsiveness to neighbor complaints
6. Address STR impact on affordable housing availability
7. Improve permit and tax compliance to increase tax revenue
8. Ensure level playing field with traditional lodging providers
9. Reduce tension between STR property owners and neighbors
10. Make citizens aware that STR problems are taken seriously

Albany County Level

Albany County follows New York State regulations and may be subject to the new statewide registry system being implemented in 2025.

New York State Level

Statewide Short-Term Rental Registry (Effective March 25, 2025):

• Property owners must register with the Department of State or municipal system
• Booking services must verify registrations and remove unregistered listings
• Mandatory data sharing and tax collection by booking platforms
• Monthly/quarterly reporting requirements to municipalities
• Classification of STRs as "hotels" for tax purposes
• Enforcement power granted to local governments and Attorney General

Key State Requirements:

• Registration with state or local registry system
• Compliance with Multiple Dwelling Law
• Tax collection and remittance obligations
• Data reporting requirements
• Insurance and safety standards

Tax Obligations

State Level:

• Income tax on rental income
• Sales tax collection and remittance
• Hotel occupancy tax (varies by location)

Local Level:

• Property taxes (may be affected by STR use)
• Potential local occupancy taxes (currently under discussion in Albany)
• Business license fees (when implemented)

Contact Information for Local Authorities

Albany City Government - Department of Planning & Development

Address: City Hall 24 Eagle Street Albany, NY 12207

Phone: (518) 434-5240 (City Hall main number)

Website: www.albanyny.gov/268/Planning-and-Development

STR-Specific Information: www.albanyny.gov/2268/Short-Term-Rentals

Hours of Operation: Monday - Friday: 8:30 AM to 5:00 PM

For STR Questions: Contact the Department of Planning & Development through the main city number or visit the dedicated STR page on the city website where updates and information are regularly posted.

New York State Department of State

For statewide registry requirements (effective 2025):

Website: www.dos.ny.gov/ Phone: (518) 474-4752

Source Links

• Albany City STR Information: www.albanyny.gov/2268/Short-Term-Rentals
• City Planning Presentation (February 2024): albanyny.gov/DocumentCenter/View/10200
• New York State STR Registry Information: www.news10.com/news/ny-news/new-york-short-term-rental-regulations-start-in-2025/
• General STR Laws in NY: www.checkmaterentals.com/blog/short-term-rental-laws-new-york

Important Considerations for Investors

Market Data (as of January 2024)

• Approximately 455 STR listings in Albany
• 76% entire home/apartment listings, 24% partial home listings
• Average 85 nights booked per year
• Price per night: $105-$121
• 62.9% of units rented 90 or fewer days per year
• 70% of operators have multiple listings

Investment Considerations

1. Regulatory Uncertainty - New regulations are being developed and could significantly impact operations
2. Compliance Costs - Anticipate costs for licensing, inspections, and compliance measures
3. Neighbor Relations - Priority focus on addressing community concerns about noise, trash, and parking
4. Tax Implications - Multiple tax obligations at state and local levels
5. Insurance Requirements - Adequate liability coverage essential
6. Property Management - Consider professional management to ensure compliance and neighbor relations

Best Practices

• Engage proactively with the community and city planning process
• Implement strong property management protocols
• Address neighbor concerns promptly
• Maintain detailed records of operations and compliance
• Stay informed about evolving regulations through the city website and public meetings

Note: This regulatory environment is actively evolving. Prospective STR operators should monitor the city's STR webpage regularly and consider consulting with local legal counsel familiar with Albany's developing regulations before making significant investments.