Do you run a short-term rental property? Think AirBNB or VRBO.

These properties bring income to owners and operators, but they require constantly tracking a changing legal landscape—especially in popular rental areas. It’s vital to keep tabs on changes to local laws to ensure you do not end up with a costly legal headache that undoes the potential profit.

For example, in New York City, Local Law 18 has tightened restrictions on short-term rentals and increased the responsibility of the advertising platforms to enforce the limits. Only short-term rental units that are owner-occupied, host two or fewer people, and give guests full dwelling access, remain legal in the city. To qualify for a long-term rental, the unit must be rented for more than 30 days at a time. Any host found in violation of the law may face a fine of between $1,000 and $5,000.

Other localities have followed suit—especially in areas already facing a housing shortage for residents and workers. Weehawken, New Jersey’s Town Council approved a ban on short-term rentals for less than 30 days. Jersey City New Jersey implemented a similar ban by referendum, a reflection of increasing housing costs and a lack of availability in the city. Towns along the New Jersey coast have placed restrictions on short-term rentals in response to rowdy groups and parties. Some of the coastal limits do allow for seven-day rental periods, which varies from town-to-town.

Connecticut cities and towns have their own restrictions. Hartford regulates the size of rental dwellings, requiring at least 70-square-feet for the first person and an additional 50-square-feet for each additional guest. In Hartford, short term rental units are limited to four or fewer people. Coastal towns have faced similar concerns as New Jersey’s coastal communities and have considered or implemented restrictions. Generally, insurers have filed the means to exclude home-sharing activities, while retaining the traditional homeowner’s coverage for the property of roomers and boarders, as well as occasional rental activities. For additional premium, insurers may offer the option to restore coverage for home-sharing activities.

Give us a call to ensure you have the proper insurance for your short-term rental units.


  • 11% of Americans have used an online service (Airbnb, VRBO or HomeAway).
  • The median age of U.S. home-sharing users is 42
  • Over 60% of U.S. Airbnb hosts rent out their primary home while they’re on vacation

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