Airbnb New York: How to Invest in 2022

Rick Magliano

Investing in Airbnb New York is now more beneficial than ever. How do you join such an exciting investment opportunity? Read on to learn more.

Table of Contents

  1. New York Is Great for Airbnb
  2. Airbnb Regulations in New York City
  3. How to Start an Airbnb New York Investment
  4. Top 5 NYC Neighborhoods for Airbnb Investment
  5. Is NYC Airbnb Investment the Right Move?

New York City continues to be a major attraction with an impressive flow of tourists each year. Real estate investors waste no time and make lucrative deals every single day. So, if you’ve been thinking about investing in Airbnb New York, now is a perfect time.

Prices for a nightly stay at Airbnb properties in New York have always been comparatively high. Nowadays, with the gradual easing of quarantine restrictions, the number of tourists who wish to find a place for their temporary stay in NYC increases every day. It is why investors need to grab the opportunity, as Airbnb New York deals are now among the most profitable ones.

In this article, you will find everything you need to know about the best Airbnb investment options in New York City, including the latest Airbnb analytics on the most demanded places for rental apartments in town. Experienced real estate investors may use Airbnb New York as a perfect opportunity to considerably increase their income, while for the newbies, it is a great place to start.

New York City is Great for Airbnb

Despite the significant increase in rental availability in NYC over the past two years, the rates for short-term rentals are still competitive as usual. Many temporary residents may even call them exorbitant, but it doesn’t change the fact that Airbnb apartments for rent continue to be in high demand.

According to the latest analytics, a short-time stay in New York City is, by all means, more convenient than a long-time one. In fact, NYC became the most visited city in the fall of 2021. Consequently, New York holds its position as a major renter attraction.

If you are a first-time investor, it will be useful to get acquainted with all the peculiarities of Airbnb in advance. First, Airbnb is a revolutionary marketplace that is known globally as one of the most sought-after and reliable tools for finding short-time rental properties. Note that Airbnb doesn’t own the offered properties but rather serves as a platform for connecting property owners and their potential clients.

New York City Airbnb rentals continue to see high demand among people planning their short-term stays. Rental prices remain high, while the popularity of different types of properties is increasing day by day. Consequently, NYC Airbnb landlords always make a considerable profit. Here’s what you can expect from an average NYC rental property.

Key Statistics:

  • Median Property Price: $1,369,759
  • Average Price per Square Foot: $1,478
  • Days on Market: 177
  • Monthly Airbnb Rental Income: $4,328
  • Airbnb Cash on Cash Return: 1.01%
  • Airbnb Cap Rate: 1.03%
  • Airbnb Daily Rate: $191
  • Airbnb Occupancy Rate: 66%
  • Walk Score: 62

Airbnb Regulations in New York City

Airbnb is a universal marketplace not only for people looking for short-term stays but for landlords as well. They’re always able to target the right audience for your particular type of rental property.

On top of that, it provides data to real estate investors that allow for analyzing all the latest changes within the market, as well as researching potential competitors. Manual analysis is too cumbersome, but a tool like Mashvisor helps investors understand their sub-market effortlessly.

But the New York Airbnb market isn’t perfect for the landlord. Certain regulations and restrictions concern Airbnb investments, depending on state and city. When it comes to Airbnb New York City, the regulations mostly concern new state amendments.

It is required to share your hosting and listing data with the city government. If you don’t wish to do that, you can still agree on hosting 30 nights or longer—such a form of renting doesn’t fall under the regulations. It means finding long-term Airbnb tenants is a lucrative opportunity in NYC. However, it is not really convenient for the hosts who plan to rent out only for short periods of time.

The required information about the host includes name, physical address, phone number, email, profile ID number, profile URL, the total amount that was transmitted to the host by the platform, and the account name, as well as your personal anonymized identifier for the account number that is used for receiving payments. Some listing information, such as the physical address, type of property, name, ID number, and the total number of booked nights, are included.

Related: Is Airbnb a Good Investment Considering All of the Regulations? 

Exceptions to the Rule

There are, however, a few exceptions to the above rule. The data won’t be shared with the city government in case you are renting out Class B listings (which may include licensed hotels) and private or shared rooms with the capacity for two or fewer guests. You also don’t need to submit the required information if you are renting out for a short-time stay of up to four nights.

Besides the general amendment, you should also pay attention to the additional regulations. They include taxes, rent control, business licensing (if required), and the New York State Multiple Dwelling Law that restricts certain rentals for periods lower than 30 days.

How to Start an Airbnb New York Investment

Despite a few general restrictions, investing in Airbnb in New York City is now easier than ever. There is a vast choice of reliable online tools that assist the experienced, as well as the beginner investors, in each step of their investment process. As a result, becoming a landlord in NYC is getting much less time-consuming.

Before investing in an Airbnb property, you may want to calculate your potential income or investment metrics. In addition, if you’ve already decided to start investing in Airbnb apartments, it will be convenient to get acquainted with the host fees beforehand. While preparing to turn your apartment into a rental property, it is wise to use a universal analytical tool.

If you own a residential property in New York City and wish to start making a profit as a landlord, Airbnb opens many doors for you. Now that tourism is in its prime again, short-time rentals are a true goldmine for real estate investors. Let’s break down the most important points you need to know about possible types of apartment rentals.

1. Rent Out a Room at the Apartment Where You Live

Most tourists in New York City can afford a short-term rent of an Airbnb room. Renting out a single room is certainly less stressful than renting out your entire property. However, there are some facts to consider before becoming a host.

First of all, discover what benefits your property’s location can guarantee to you as an investor. Investors can use a universal tool called Real Estate Heatmap that allows them to trace and analyze the peculiarities of the chosen location and how it can impact their profit.

The heatmap tool comes in handy whenever you need to compare listing prices, rental income, cash returns, and Airbnb occupancy rates. In such a hotbed of constant tourist flow as New York City, the tool is a must-have for every landlord.

After checking for all the required info, you need to list your room on Airbnb. The listing itself is free, but Airbnb usually takes around a 3% fee of what you charge for your rental property. However, the fee may vary slightly depending on the location.

The most important factor is, of course, your property’s maintenance. Make sure that your room is in proper condition before renting it out. Otherwise, you may significantly spoil your landlord’s reputation.

Related: The 2022 Guide to Using Heatmap Analysis to Identify Areas for Rental Investment 

2. Rent Out a Whole Apartment

Many investors consider renting out their whole apartment, as it can considerably multiply the expected profit. If you are currently preparing your rental property for a new deal, a little bit of fact-checking may be of use. Here are the most critical steps you need to follow in order to rent out your apartment at Airbnb in New York.

First things first, the zoning laws of the chosen location are worth checking. There is a special New York City Zoning Code that permits the location of rental properties in certain areas of the city. Provided that you adhere to all the zoning laws, you don’t need to worry about such complications as violation fines.

The next step is estimating your budget. Note that besides planning out your deal with a customer, you need to calculate your own expenses as well. They include the Airbnb host fees that you are paying for your property and extra taxes for short-term rentals. If you are tired of hours of calculations, the online Airbnb estimator is a true game-changer for you.

Given that all costs are calculated, it is essential to list your Airbnb property the right way. The algorithm is easier than it may seem. After creating your personal account, you are to describe your rental apartment in all the important details. Briefly point out the provided amenities, your booking preferences, and the price. Don’t forget to take quality photos that will give your target customers the whole picture of your offer.

Bear in mind that there are various types of properties you are able to rent out. Some people are interested in condos for rent or townhouses for rent, while others are looking exclusively for apartments in residential buildings. Being an Airbnb host in New York City is particularly beneficial, as every possible type of property is guaranteed to find its renter.

3. Start an Airbnb Long-Term Rental

It is not a secret that long-term Airbnb rentals are much more time-consuming and may sometimes pose a real hassle. However, by renting out your property for a long period, you can be sure that you’ll be receiving a stable rental income from your clients. It is important to know that after signing your lease agreement for a long-time rental, you are no longer able to change your property’s price.

A major benefit of the long-term Airbnb rental in New York City is the fact that it is not seasonal, which means that the renters’ demand does not vary much depending on the time of the year. Consequently, your main task is to ensure the quality maintenance of your property. With everything settled the right way, you may not worry about your positive cash flow.

For all the calculations needed before renting out your property for long periods, you can use such handy tools as an occupancy rate estimator or profitability calculator. With all the needed instruments and tools in one platform, being a long-term landlord is now easier than ever.

Airbnb New York - Profitability Calculator

Mashvisor’s Profitability Calculator allows owners and landlords to do all the calculations needed before renting out their property.

Top 5 NYC Neighborhoods for Airbnb Investment

Interested in entering the New York rental market? Here are the top five most profitable neighborhoods sorted according to the highest Airbnb cash on cash return rate using the latest Mashvisor data.

1. Stuyvesant Town

Stuyvesant Town in Columbia County is a true wonder for people who wish to get distracted from the big city’s hustle and bustle. Most of the property owners in the town offer spacious and comfortable cottages or townhouses. Stuyvesant is, by all means, a perfect place for the gasp of fresh air, and it is why the flow of vacationers there is impressive. It can be considered one of the best Airbnb in New York in terms of quality and quantity.

Becoming a landlord in the area can be lucrative due to the excellent location of the properties. Most of the rental townhouses offer a perfect view of the Hudson River and its banks. Besides the fascinating landscapes of the town, there are also plenty of facilities in close proximity, so your renters don’t need to worry about places for shopping or nights out.

Key Statistics:

  • Median Property Price: $1,105,357
  • Average Price per Square Foot: $1,495
  • Days on Market: 76
  • Monthly Airbnb Rental Income: $4,407
  • Airbnb Cash on Cash Return: 1.99%
  • Airbnb Cap Rate: 2.06%
  • Airbnb Daily Rate: $212
  • Airbnb Occupancy Rate: 68%
  • Walk Score: 96

Related: What Is a Good Cash on Cash Return?

2. Vinegar Hill

Brooklyn is a place that speaks volumes for many apartment renters. Vinegar Hill, which was once commonly known as Irishtown, is a multicultural neighborhood near the East River. Airbnb rental prices in the neighborhood are not as high as in some of the other NYC boroughs but still can give you a solid profit. People who rent apartments in Vinegar Hill are likely to be used to the big city life. However, as a landlord, you should still ensure the maximum coziness of your property and make it a perfect place even for a short-time stay.

Most of the Vinegar Hill residents rent their places. Young professionals prefer the neighborhood due to the mix of an urban setting and the good amount of places to go to and get some rest. Small business is thriving in Vinegar Hill, and it only adds to the neighborhood’s popularity among renters.

Key Statistics:

  • Median Property Price: $1,450,000
  • Average Price per Square Foot: $1,125
  • Days on Market: 13
  • Monthly Airbnb Rental Income: $5,920
  • Airbnb Cash on Cash Return: 1.63%
  • Airbnb Cap Rate: 1.64%
  • Airbnb Daily Rate: $229
  • Airbnb Occupancy Rate: 68%
  • Walk Score: 89

3. Tudor City

You’ve probably heard about Tudor City being the first residential skyscraper complex in the world. And probably you can imagine how it can work out to your advantage as a landlord as well. Sure thing, most of the clients who plan to rent a place in Manhattan are usually aiming for such an excellent spot.

Tudor City is an important historical example of a middle-class residential property. It is well known for its penthouses and penthouse terraces that give a breathtaking view of the entire Manhattan area. Needless to say that Tudor City is a true goldmine for Airbnb New York investors.

Key Statistics:

  • Median Property Price: $1,160,833
  • Average Price per Square Foot: $1,414
  • Days on Market: 159
  • Monthly Airbnb Rental Income: $4,589
  • Airbnb Cash on Cash Return: 1.51%
  • Airbnb Cap Rate: 1.53%
  • Airbnb Daily Rate: $234
  • Airbnb Occupancy Rate: 66%
  • Walk Score: 99

4. Sutton Place

A quiet and peaceful neighborhood on the east side of Manhattan, Sutton Place is best suited for renters who crave daily inspiration from dynamic and lively big city surroundings. The architecture encompasses a mix of classic New York grandeur and futuristic high rises. Sutton Place is a district with all the facilities needed for a comfortable life. Landlords may find the location particularly alluring due to the constantly high demand from renters and competitive rental prices.

Sutton Place is one of the most popular areas for short and long-term rentals on Airbnb New York. Being in close proximity, Central Park makes the neighborhood a particularly wanted location for young families, artists in search of inspiration, and workers who crave convenience alongside proper relaxation.

Key Statistics:

  • Median Property Price: $1,275,609
  • Average Price per Square Foot: $1,356
  • Days on Market: 127
  • Monthly Airbnb Rental Income: $4,726
  • Airbnb Cash on Cash Return: 1.47%
  • Airbnb Cap Rate: 1.49%
  • Airbnb Daily Rate: $223
  • Airbnb Occupancy Rate: 64%
  • Walk Score: 100

5. Bedford Stuyvesant

Bedford Stuyvesant bears a reputation as a small comfy town in the heart of Manhattan borough. The neighborhood is a true eye candy due to its exquisite Victorian architecture, historic landscapes, and impressive cultural background. Known for its warm hospitality, Bedford Stuyvesant attracts numerous renters regardless of the season. There is always something to get inspired by.

As a real estate investor, you should consider Bedford Stuyvesant due to the convenience afforded by its location and year-round demand. Prices do not vary much across the neighborhood, so you can always expect a stable rental income.

Key Statistics:

  • Median Property Price: $1,622,731
  • Average Price per Square Foot: $666
  • Days on Market: 187
  • Monthly Airbnb Rental Income: $3,959
  • Airbnb Cash on Cash Return: 1.46%
  • Airbnb Cap Rate: 1.47%
  • Airbnb Daily Rate: $183
  • Airbnb Occupancy Rate: 64%
  • Walk Score: 90

Is NYC Airbnb Investment the Right Move?

New York residences tend to be quite expensive and not really suited for a first-time investor with little money to spare. However, if you got the funds to finance a mortgage that would get you a nice Vinegar Hill or Bedford Stuyvesant apartment, it can be an Airbnb goldmine.

In case you’re in doubt, feel free to use Mashvisor to calculate every aspect of the deal. You can get an estimate of your rental income with different vacancy settings. Once you find an apartment that seems profitable, make your move.

Want to try Mashvisor for free? Click here and get your 7-day free trial to check out all the features. Also, get a major discount after the trial period is over.

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