The administration of New York City Mayor Eric Adams has made a new law that could result in numerous losses for Airbnb New York. It is a short-term rental regulation whose implementation can lead to Airbnb losing more than 10,000 listings in New York.
This is not the first time Airbnb has had problems with the government of New York. Airbnb monthly rentals have become famous for people seeking short-term accommodations worldwide. The law seeks to curb the major crime of using houses for illegal renting on platforms such as Airbnb New York. Most people living in the city use spaces for these Airbnb monthly rentals without the owners paying taxes.
Before this new law was signed by the administration of New York City Mayor Eric Adams, there was already an amended law in 2020.
"Under this updated local law, short-term rental platforms would share information with the City on a quarterly basis. The report would include all listings that generate five or more nights of bookings per quarter, so long as the listing offers an entire home or allows three or more guests to stay at one time. Information will not be provided for private or shared room listings with two or fewer guest capacity; for listings that are rented for less than five nights per quarter; or for listings that are in qualifying traditional hospitality locations, based on a list the City will publish," the law signed in 2020 read.
The New Law Will Reduce Crime
According to what is written on paper; the new law was made to reduce the amount of tax evasion and other illegal activities in New York.
The new regulation in January will make it compulsory for those who partake in Airbnb rentals to register their short-term rentals with the city's database. In addition, they should also provide evidence that their home is up to the required safety standards. Those who disobey the new regulations by the New York government may get up to $1,000 to $5,000 in fines.
"Airbnb agrees regular New Yorkers should be able to share their home and not be targeted by the City, and we urge the administration to work with our Host community to support a regulatory framework that helps responsible Hosts and targets illegal hotel operators," the public policy regional lead for Airbnb Nathan Rotman said.
Airbnb has already emailed their customers affected by the new regulations. The content of the email read, "We're reaching out because the City is set to enact a law that would drastically affect the ability of New York Hosts to continue sharing their homes. As a result, short-term rental accommodations for travelers like you will be dramatically reduced to hotels and shared room with no locks. This will restrict travel options outside popular tourism areas and hurt small businesses throughout the city."
The executive director of the New York city's Office of Special Enforcement, Christian Klossner, said he was expecting at least 10,000 listings to disappear once the new law is enacted. With nearly 40,000 listings in New York, this might be a huge blow to Airbnb but might go a long way to reduce crime.