New York City Officials to Enforce Strict Regulations on Airbnb Rentals
New York City officials are set to crack down on short-term home rentals through platforms like Airbnb, enforcing new regulations that aim to limit residents’ ability to rent out their homes. This move is expected to result in the removal of thousands of listings from these platforms, marking the latest development in the ongoing dispute between big cities and home-sharing companies.
According to city officials, the proliferation of short-term rentals has contributed to rising rents and exacerbated the housing shortage in New York City. The city argues that companies like Airbnb have not done enough to police their platforms and remove violators of existing laws. A July court filing revealed that more than half of Airbnb’s $85 million net revenue in 2022 from short-term rentals in the city came from illegal activity, a claim disputed by Airbnb.
The new regulations, which will be enforced starting Tuesday after facing several court challenges, require hosts to register with the city if they want to rent their properties on a short-term basis. Platforms such as Airbnb, Vrbo, and Booking.com will be responsible for checking if a host’s registration application has been approved before processing any fees associated with short-term stays. Hosts who violate the rules could face fines of up to $5,000 for repeat offenses, while platforms could be fined up to $1,500 for facilitating illegal rentals.
The city estimates that there were approximately 10,800 illegal short-term rentals in March 2023. City officials argue that renting these homes to tourists instead of residents exacerbates the housing shortage and leads to increased living costs. Residents living in buildings with short-term rentals have raised concerns about safety, crime, noise, and hygiene issues associated with transient guests.
The hotel industry, which sees platforms like Airbnb as competition, has long fought against their expansion. The Hotel Trades Council, a powerful force in local politics, has aligned itself with Mayor Eric Adams and actively supported the restrictions on short-term rentals.
However, Airbnb contends that short-term rentals contribute to the city’s tourism economy, especially in areas with limited hotel options. The company has challenged the new rules in court, arguing that city code should allow certain unhosted rentals in one- and two-family homes. Airbnb also claims that the registration system is needlessly complex. Despite its legal efforts, the company’s lawsuit was dismissed last month.
Starting Tuesday, there will be a significant reduction in available Airbnb listings. Short-term rentals through platforms like Airbnb that are not registered as “hotels” with the city will likely no longer be available. Airbnb has stated that some listings will be converted to long-term rentals, while others will be deactivated. As of August 28, the city had received around 3,250 registration applications, with only 257 approved. Airbnb estimates that nearly 15,000 hosts have active listings for short-term rentals in New York City.
For bookings made for stays of less than 30 days after Tuesday, certain actions will be taken. Reservations with check-ins before December 1 will not be canceled, while those with stays after December 2 will be canceled and refunded. The city has emphasized that it will only remove guests from illegal short-term rentals if there are health or safety hazards present.
Neither Airbnb nor the city could provide updated data on the number of listings expected to be taken down. However, rental analytics company AirDNA estimates that around 7,500 listings could be affected by the new regulations out of approximately 13,500 active listings for entire apartments and homes on Airbnb.
The enforcement of these strict regulations brings to the forefront the ongoing debate between balancing the benefits of short-term rentals for tourists with the concerns about housing availability and the influence of the hotel industry. As the city cracks down on Airbnb rentals, it remains to be seen how this will impact the tourism industry and the choices available to visitors in New York City.