New York City Implements Regulations on Short-Term Rentals, Airbnb Ceases Accepting Some Reservations
New regulations on short-term rentals went into effect in New York City, prompting home-sharing company Airbnb to halt the acceptance of certain reservations. The new rules aim to put an end to the practice of landlords and residents renting out their apartments for short stays, causing a surge in demand for housing in already limited neighborhoods.
Under the new system, rentals shorter than 30 days are only permitted if hosts register with the city and commit to being physically present in the home throughout the rental period, sharing living quarters with their guests. Families with more than two guests are effectively prohibited from utilizing short-term rentals.
Popular platforms like Airbnb and VRBO are now prohibited from processing rentals for unregistered hosts. However, the number of successful registrations remains low, with the city approving just under 300 out of over 3,800 applications received.
Supporters of the restrictions, including officials and housing advocates, argue that they are crucial in preventing residential apartments from transforming into unofficial hotels. Murray Cox from Inside Airbnb, a housing advocacy group, highlights the importance of maintaining residential use for apartments in New York City.
Airbnb has been challenging these regulations in court, claiming that they amount to a ban and would adversely impact visitors seeking affordable accommodations. Theo Yedinsky, Airbnb’s global policy director, states that the rule changes are a blow to the many New Yorkers and small businesses in the outer boroughs who rely on home-sharing and tourism revenue.
Despite its legal battle, Airbnb is complying with the new regulations. Since August 21, the company has stopped accepting new short-term reservations from hosts who haven’t provided a city registration number or documentation indicating their application is in progress. Once the city’s verification system is fully operational, Airbnb will not allow any short-term listings on its platform without a registration number.
As of January, Airbnb had approximately 38,500 active non-hotel listings in New York City. Some hosts of smaller homes argue that they are being unfairly targeted and grouped together with larger apartment buildings.
The regulations were initially adopted by the city in January of last year but faced legal challenges until recently.
While online rental services granted travelers more options in New York City and benefitted residents who rented out their homes while on vacation, complaints about scarcity of housing in residential neighborhoods being occupied by tourists have also surfaced. Regular tenants expressed concerns about their buildings feeling like hotels, with strangers in the hallways and occasional parties in rented units. There were instances where investors bought units or entire townhouses, earning significant profits by renting them out on a nightly basis, despite such rentals being prohibited by law.
Christian Klossner, the executive director of the city’s office of special enforcement, emphasizes that registration creates a clear path for hosts to comply with longstanding laws while protecting travelers from illegal and unsafe accommodations. In recent guidance to New York City hosts, Airbnb advised them to either register with the city or consider transitioning to long-term rentals if possible.