New York limits short-term rentals on Airbnb, Vrbo, Booking.com and others

26-08-23

New York limits short-term rentals on Airbnb, Vrbo, Booking.com and others.
The aim is to put an end to illegal rentals.

The US city will only allow stays of less than one month on this type of platform if it is shared with the owner and if the property is registered with the City Council.

As of 5 September this year, city officials say they will enforce rules on short-term rentals more aggressively. The city's Local Law 18 was passed in June 2023 and requires platform hosts to register their homes with the New York City Mayor's Office of Special Enforcement for rentals.

The city's first-of-its-kind regulation also provides for civil penalties of up to $5,000 for violations.

Even when registering with the municipal service, the new regulation prohibits renting entire flats if the stay is less than one month. For shorter stays, the landlord must share the flat. For its part, the vacation rental company Airbnb has described the registration processes as "mazes for short-term rentals" and "a de facto ban on short-term rentals".

As reported by Forbes, short-term rentals in New York generated $85 million in annual net revenue for Airbnb in 2022, according to the lawsuit. This is more than one per cent of the US company's $8.4 billion in annual revenue. In the city, there would be an estimated 30,000 flats and houses - not counting the hotels that use the platform - registered on the website, which, until now, enjoyed greater legal freedom to rent them out.

The city, as in Europe, is experiencing a housing crisis fuelled by these tourist rental flats. Housing prices are rising, especially in city centres, and residents are being forced to live on the outskirts at a more affordable price.

New York, governed by Democratic Mayor Eric Adams, and companies like Airbnb have long been fighting over the regulation of short-term rentals. The city estimates that there are some 10,800 illegal short-term rentals across the city and is one of the main targets for regulation.

From 5 September, guests will have fewer options for accommodation. Landlords are already blocking bookings for dates after the legislation comes in. Travellers should double-check their bookings if they plan to stay in New York this autumn. Airbnb says it will not cancel bookings with check-ins before 1 December to mitigate the effects for hosts and guests.

The new law prohibits booking platforms from processing payments for unregistered transactions. That means that not only Airbnb, but other platforms such as Vrbo or Booking.com also face penalties.

Other US cities, such as Dallas or Philadelphia, have also started to regulate this type of short-term tourist rental, but the Big Apple is the one that is setting the most limits. However, New York is not the first to do so. Cities such as Tokyo and Paris have also implemented regulations, each with their own complexities.

Airbnb and hosts say the rules make it almost impossible for anyone to register a rental. "The city is sending a clear message to millions of potential visitors who will now have fewer accommodation options when they visit New York: You are not welcome," says Theo Yedinsky, Airbnb's director of global policy.

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