Keep reading to find out what this new law really means for hosts and guests.
About the New York City Short-Term Rental Law
- Short-term rentals of an entire apartment or home are not allowed, even if the host owns or lives in the building.
- Short-term rentals of partial apartments or homes are allowed, IF:
- You register your apartment or home with the Office of Special Enforcement (OSE),
- And, you, as the host, are also staying in the same apartment or home as the guest(s), and if there are no more than two guests staying with you.
So, what now?
Maybe you’re someone who travels a lot and wants to earn back some money for your rent or mortgage while you’re away. Maybe this property isn’t your primary home and you wanted to use it as an investment property. Maybe you just have a really cool space and know that someone would appreciate it for a project or event and it’s always nice to earn some passive income.
Whoever you may be and whatever situation you’re in, we have an answer that could help you.
Our proposed solution.
There are still ways to continue to monetize your space without breaking the law. One of those solutions is to rent your space out for activities such as productions, meetings, corporate events, private events, showrooms, etc. While there are platforms out there that provide you with the tools to list your space and manage everything on your own, arguably the most convenient and efficient way to do this would be to work with a professional service like Cocoon.
Who is Cocoon?
At Cocoon, we specialize in monetizing spaces for property owners of all backgrounds by renting out their homes and spaces to our rental clients. We pride ourselves on prioritizing ease and convenience for our property owners, offering an end-to-end service that includes everything from managing and maintaining the property to marketing and generating leads for the property, to managing the bookings and on-site events. We can help you generate significant passive income through your real estate assets without you ever having to lift a finger!
How is Cocoon different?
Our business model and core principles set us apart from other short-term rental platforms in several very significant ways.
What we offer that sets us apart:
1. Full service management.
Creating the listing, sorting through the leads, and coordinating bookings can become extremely cumbersome for property owners. That’s why we take care of everything from beginning to end. The only thing you’ll have to do is review the incoming leads and approve the bookings you’re comfortable with, then enjoy your check!
2. Insurance and risk management protocols.
We always have at least two layers of insurance, and only < 1% of our bookings have had any incidents – all of which were taken care of by our rental clients’ insurance. Our thorough damage prevention strategies ensure that your space is never left vulnerable or alone.
3. Overcoming hurdles. Often, monetizing your space in NYC is not as easy as it would seem. For spaces in residential buildings, it can be difficult to get board approval, as well as ensure that there will be zero impact on your neighbors and nearby businesses. We take care of all of those hurdles for you.
4. A strategic approach to optimize profits.
Our business model consists of including a wide range of activities (production, meetings, showrooms, events) rather than just focusing on one category. This allows us to both reach a broader range of clients as well as maintain a consistent stream of activity by fighting industry seasonalities.
Rather than just focusing on booking largely profitable productions a couple of times a year, we focus on filling out the time in between with smaller events and meetings. From a cumulative standpoint, your revenue will be higher at the end of the year.
Why your experience with us is different:
1. No upfront costs.
Cocoon’s property owners do not have to go out-of-pocket while working towards monetizing their property. Since we handle every facet, we pay for the photography, the marketing campaigns, and the time that goes into creating the listing and generating leads.
2. 100% privacy.
Other platforms may require you to communicate directly with clients and possibly even coordinate in-person site visits and meetings. Cocoon is different. We handle all of that for you so that you can protect your identity and remain anonymous. Before a rental client enters a space, we always ensure that all personal items are hidden so that we continue to protect the privacy of our property owners.
3. Flexible availability.
Renting out your space for activities as opposed to for overnight stays provides a very big benefit—you’re able to maintain access to your property. The property owners we work with are able to live in their space while renting out their space for activities. Additionally, since we only accept activity bookings (as opposed to overnight stays) and always have an on-site Cocoon Casa Manager, we are able to accommodate these last-minute changes and needs very easily for our property owners.
4. Quality over quantity.
With Cocoon, your space only needs to be available 5-7 days each month to generate a significant amount of revenue for you. You don’t have to commit to a large amount of bookings to see significant revenue. Some of our top-performing spaces generate close to half a million in annual revenue yet are only being booked 5-7 days each month.
5. The last word: full control of who books what and when.
The property owners that we partner with value the fact that they have the final word on who gets to decide who enters your home, how they use it, and when they use it.
6. Your metrics all in one place.
At Cocoon, we believe in a data-driven business model. We provide all of our partners with a personalized live dashboard with booking information and performance metrics such as revenue, profitability, trends, and more. This important data helps to identify valuable opportunities and customized marketing strategies to drive better monetization.
Want to start monetizing your property? Send us an inquiry.
Case in Point: Casa Escondida
Casa Escondida is one of our newest properties that we just onboarded this summer. The property owners were hoping to spend more time in Europe and had been considering a permanent move, but were hesitant about selling or renting their property. What they really wanted was to keep the property and have the option to come home from time to time. Additionally, their daughter needed frequent access to the property. Prior to moving, they needed to have a concrete plan in place for making ideal use of their NY property and monetizing it while still meeting their needs.
The owners of Casa Escondida had been working exclusively with a short-term vacation rental platform for over a year. However, after only had a couple of successful rentals take place, in addition to facing the challenge of the new rental law, the owners wanted to find a different, more flexible solution to monetize their space.
Upon meeting and explaining our services, the owners were instantly intrigued and excited to move forward to find out what Cocoon could do for them and their property.
Cocoon generates leads, markets and maintains the property, and much more. This model leads to minimized risk, ensures low liability, and helps bring in maximum revenue. Also, since Cocoon never books an event without the property owner’s approval, property owners maintain control of who is accessing their property.
Once onboarded, Casa Escondida had 3 bookings in the first quarter of being with us and jumped to 8 bookings the next quarter, demonstrating the exponential growth of income that Cocoon provides to property owners.
Case in Point: Casa Duende
When the property owner of Casa Duende was looking for a way to monetize his gorgeous Lower East Side home, he found it challenging. Between the lack of consistency that came with renting it on vacation rental platforms, and how time-consuming it was to find event rental clients that were matches, attempting to monetize his property became a full-time task.
Since the property owner was in the middle of a huge property expansion, he needed a strong plan in place to successfully monetize his property. He felt that there was much more potential for revenue generation than he was currently experiencing.
Alejandra Alonso Rojas NYFW 2023 runway show at Casa Duende.
When he decided to join the Cocoon portfolio, he was hesitant to go all in due to his past experiences with both vacation and activity rental platforms.
The property owner started slowly – only accepting a couple of Cocoon bookings a month. He immediately began to see the revenue generation potential, bringing in around $8000 a month. As he noticed the way that Cocoon fully vets potential renters, and submits them to property owners for full approval, as well as marketing and maintaining the property, the property owner decided to open his property fully for Cocoon.
Upon doing so, he immediately began bringing in more revenue. In the first two months, the bookings generated $35,000 in revenue. Due to the new revenue stream, Gordon was able to get much closer to his financial goals and fast-track his renovation and property expansion.
The property owner has been with us for over a year now and enjoys the revenue that Cocoon brings in every month for him.