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Here's the actual NYC law about short term apartment rentals

I'm not a lawyer
There are so many questions on Fodors about the recently redefined NYC law disallowing apartment rentals of fewer than 30 days. Common questions are what if it's a co-op, what if it's a condo, what if it's a townhouse, what if it's a corporate apartment, why would VRBO or Homestay or Craigslist or AirBnB allow the ads if it's not legal, etc.

I hope this link to the actual law will help clear up some things.
http://www.nyc.gov/html/dob/downloads/pdf/NYS_chapter_225.pdf

There are probably some legal rentals out there and of course, some people will still decide to take their chances. I hope this will give people some real useful information so they can understand why so many here keep saying "it's illegal" Ultimately everyone will decide for themselves what they want to do

here are some articles that explain things too
http://travel.usatoday.com/destinations/dispatches/post/2010/07/new-ban-on-short-term-nyc-apartment-rentals-takes-effect-next-spring/101214/1

http://www.nytimes.com/2011/06/26/nyregion/answers-to-questions-about-new-york.html

http://www.brickunderground.com/blog/2011/09/reminder_its_still_illegal_to_rent_out_your_apartment_for_less_than_a_month

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