New York Condo Rental Restriction Rules

Article 9-B of New York's Real Property Law does not itself cap or guarantee rental rights in condominiums; it hands the choice to each condominium's own by-laws. Real Property Law § 339-v(2)(a) lists leasing among the "optional" by-law subjects: the section provides that by-laws "may also provide for" provisions "governing the alienation, conveyance, sale, leasing, purchase, ownership and occupancy of units." A condominium board or sponsor is free to write by-laws with no leasing restriction at all, a flat leasing ban, a percentage cap on rented units, a minimum-ownership-before-leasing waiting period, or a rental application and approval process, because the statute leaves the content to the by-laws rather than dictating it.

The statute imposes exactly one substantive floor on whatever the by-laws say: § 339-v(2)(a) itself provides that "the by-laws shall contain no provision restricting the alienation, conveyance, sale, leasing, purchase, ownership and occupancy of units because of race, creed, color or national origin." Separately, § 339-v(1)(i) authorizes by-law "restrictions on and requirements respecting the use and maintenance of the units" that are "designed to prevent unreasonable interference with the use of their respective units and of the common elements by the several unit owners," the same clause condominiums lean on to justify occupancy and leasing conditions not spelled out elsewhere in the declaration.

Adopting or changing any leasing rule is itself gated by § 339-v(1)(j): by-laws may be modified only by a vote of unit owners equal to "not less than sixty-six and two-thirds per cent in number and common interest," a double threshold requiring two-thirds of the owners by headcount and two-thirds of the total common-interest percentage, unless every unit in the condominium is non-residential. New York sets no statutory rental percentage cap, no minimum or maximum lease term, and no grandfather clause protecting owners who were already renting before a board tightens the rule; those terms come entirely from each condominium's own by-laws.

State law prescribes no fine schedule or appeal process for leasing violations; Real Property Law Article 9-B leaves enforcement to each condominium's own by-laws and governance powers, typically fines, legal fees, or an injunctive action against an owner who leases in violation of the adopted by-law. The only conduct § 339-v itself forbids outright is a by-law that restricts leasing, sale, or occupancy based on race, creed, color or national origin, which is void regardless of how the board or ownership voted to adopt it.