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loophole in New York City's short-term rental ban allows the wealthy to rent luxury apartments for a month, even if they only stay for a few days. This practice has become common since 2023, when regulations set a minimum stay of 30 days. For those who can afford it, renting a high-end apartment for a month can be more cost-effective than booking a hotel room.
A recent example is a penthouse at Trump Park Avenue that rented for $52,500 per month to a Middle Eastern sultan. The renter brought their own bedding and had a new bed installed, but still insisted on strict cleanliness standards. Brokers say this practice makes financial sense for those who can afford it, as hotel prices have skyrocketed in recent years.
A three-bedroom apartment at 96 King St is currently available for $15,000 per month, with short stays welcome as long as the renter takes the entire month. Abby Palanca of Serhant notes that booking additional rooms or taking an entire floor can easily cost tens of thousands of dollars per night in a city hotel.
Wealthy individuals are turning to luxury rentals as a way to avoid high hotel prices and maintain their personal standards. For example, a wealthy businessman from Texas rented a barely furnished apartment in Soho for $13,000 per month so he could pit stop in the city whenever it suited him. High-net-worth individuals value the flexibility of being able to pop in and out of the city without worrying about hotel prices or cleanliness.
Renting out homes for short-term use is big business for Airbnb and its higher-end alternatives in New York City. Luxury rental marketplaces like Rove are catering to this demand, offering concierge services and high-end properties in neighborhoods where five-star hotels are scarce. One such property is a four-bedroom apartment in Prospect Heights that can be rented for $30,000 per month – the same cost as four nights in a hotel.
Rove's CEO Jonah Hanig notes that clients book luxury rentals for varied reasons, including home renovations, medical procedures, and filming or Broadway productions. However, most are driven by a desire for privacy and flexibility. Hanig says their clients often have specific requirements, such as drive-in garages, 24-hour concierge services, and secure parking.
In the case of the Trump Park Avenue penthouse, the renter brought in a staff of five or six to ensure that everything was immaculate, despite the apartment being triple-mint. This level of scrutiny is not uncommon among high-end renters who prioritize cleanliness and security above all else.
