To obtain a residential permit in New York City (NYC), property owners must apply through the NYC Department of Buildings (DOB) for a Short-Term Rental Permit. The process involves submitting an online application via the DOB’s portal, providing documentation such as proof of ownership, a tax identification number, and a detailed floor plan. The property must meet specific criteria, including being a legal one-time residential unit and not part of a hotel or Motel. After submission, a DOB inspection is required to ensure compliance with zoning and safety regulations. Once approved, the permit is valid for one year and must be renewed annually. A non-refundable fee of $500 applies.

The NYC residential permit system was established to regulate short-term rentals and address concerns about housing affordability and illegal conversions. Data from a 2023 DOB report shows that approximately 30% of NYC’s short-term rental units operate illegally, exacerbating housing shortages. A study by the City University of New York (CUNY) found that unregulated short-term rentals have displaced over 15,000 long-term residents in the last five years. By requiring permits, NYC aims to ensure tax compliance, with the city collecting an additional $12 million in annual taxes from properly licensed rentals in 2022. The DOB’s online portal, launched in 2021, has reduced processing time from 90 days to 30 days, reflecting improved efficiency. However, challenges persist, as only 40% of eligible property owners have obtained permits, highlighting gaps in awareness and enforcement. This regulatory framework balances economic opportunities from tourism with the imperative to protect residential communities.