Thiele Seasonal Rentals Legislation Signed Into Law

On September 21, 2021, legislation co-sponsored by Assemblyman Fred Thiele and State Senator Brian Kavanagh was signed into law by Governor Kathy Hochul. The bill took effect upon its signing by the governor.

In a press release issued by Assemblyman Thiele he states: “This new law will make clear that the provisions of the Housing Tenant Protection Act of 2019 relating to security and advances does not apply to rentals of registered seasonal use dwelling units.” He goes on to say. “Tenants of such rentals must have a primary residence to return to, the address of which is expressly provided in the lease. Dwelling units registered as seasonal use dwelling units cannot be rented as a seasonal use dwelling unit for more than 120 days in each calendar year.”

In a New York State Association of Realtors (NYSAR) Quarterly Legal Update, General Counsel, S. Anthony Gatto, and Associate General Counsel, Liz Celone offer guidance for compliance with the amended law, including the following: “There are specific requirements that need to be met to qualify for the exemption. The Landlord will need to make sure that there is a local, county or state government ‘seasonal use dwelling unit registry’ (at this time there is no state registry). If there is no local, county or state registry, the property would remain subject to the deposit/advance provisions of the Housing Tenant Protection Act (HTPA) and would not be able to claim the exemption.”

In 2016, the New York Department of State (DOS) delineated the responsibilities of real estate agents regarding local rental permits and rental registry regulations. With respect to the new seasonal rental law, Gatto and Celone state as follows: “If a licensee is listing property for seasonal rental use and the landlord is collecting more than one month’s rent as a security deposit and/or more than one month’s rent, the licensee would be required to verify that the property is registered as a “seasonal use dwelling registry” pursuant to the statute. If the property is not registered, the licensee may be liable for collecting more than one month’s rent as a security deposit or more than one month’s rent as an advance. These obligations are no different than a licensee’s responsibility to verify the legality of a rental property where permits are required to rent.”