Albany, NY Accessory Structures: ADU Rental Restrictions (2026)

Albany's framework distinguishes long-term and short-term rental of an ADU sharply. Long-term (30 days or more): permitted, provided the owner occupies one of the two units as a primary residence (biennial certification). The rented unit must register under Albany Code Chapter 231 (Residential Occupancy Permit and Rental Dwelling Registry), which requires an owner-issued Residential Occupancy Permit, registration of contact information, periodic exterior code inspections, and registration fees. Registration runs in 24-month cycles. The New York Real Property Law and Real Property Actions and Proceedings Law (RPAPL) govern landlord-tenant relations: RPAPL Article 7 covers summary proceedings for non-payment and holdover, the Housing Stability and Tenant Protection Act of 2019 caps security deposits at one month's rent and prescribes other tenant protections, and landlords must comply with the warranty of habitability under Real Property Law §235-b. Short-term (under 30 days): expressly prohibited where the lot contains an ADU under the new USDO use standard. This is one of the few express STR prohibitions in Albany's zoning code, because Albany historically has not had a comprehensive STR ordinance. The City has been considering broader STR legislation, but as of the ADU amendment, the §375 ADU use standard's less-than-30-day prohibition is the operative rule for ADU-bearing lots. Hotel occupancy tax: even if a 30+ day rental is offered, no New York State or Albany County hotel occupancy tax applies because such rentals fall outside the lodging tax base. Fair housing: federal Fair Housing Act, New York State Human Rights Law (Executive Law Article 15), and Albany's local human rights protections (Chapter 48) prohibit discrimination based on protected classes including source of income (Section 8 vouchers) under New York State law.