September 3, 2024 – Airbnb is criticizing New York City’s short-term rental law, claiming that it hasn’t achieved its goal of lowering rents and has instead led to higher hotel prices. The company is calling on the city to relax some of the regulations to allow property owners to rent out their places more easily. Airbnb had previously sued the city over the law, but now says that easing restrictions would benefit both consumers and local businesses. However, the Mayor’s Office of Special Enforcement has reported that it has largely caught up with host applications (99.7% of 6,672) and is not planning to change the law.

The city of New York has implemented a new law that effectively bans most short-term rentals, including those listed on Airbnb. The law requires all hosts to register with the city and meet strict criteria to qualify, including living in the rental property themselves and being present when guests are staying. Additionally, only two people can be accommodated per host.

The law aims to curb the impact of short-term rentals on local residents, who may have seen their neighborhoods become less desirable due to noise, trash, and safety concerns associated with Airbnb and similar platforms. The city also hopes to increase the availability of long-term rental units for locals.

Airbnb has responded by canceling and refunding reservations in unregistered accommodations from December 2 onwards. The company had previously attempted to fight the law through legal means but was unsuccessful.

The new law is expected to significantly reduce the number of short-term rentals available in New York City, with over 40,000 listings currently on Airbnb. While some small-time hosts may be affected by the law, larger landlords who own multiple properties are likely to be disproportionately impacted.

The city’s Office of Special Enforcement will focus on verifying registrations and ensuring that booking platforms do not process unverified transactions. The law has been met with both support and criticism from local residents and property owners, with some arguing that it unfairly targets small-time hosts while allowing larger landlords to continue operating.

Overall, the new law represents a significant shift in New York City’s approach to short-term rentals and may have implications for similar cities looking to regulate these types of platforms.

Sources: Reuters, Wired