City Councilman Ben Kallos, a Manhattan Democrat, said the bill would reduce the number of illegal short-term rentals and increase the stock of permanent housing in the city. Mr. Kallos said the legislation would also help the hotel industry, which saw occupancy rates decline because of the Covid-19 pandemic.

Currently, it is illegal to rent an entire apartment in a building with three or more units for fewer than 30 days. However, enforcement of the law is largely driven by complaints from neighbors. The Mayor’s Office of Special Enforcement handles investigations into illegal rentals in the city.