New York Airbnb
Photo by Toomas Tartes on Unsplash

New York City short-term rental restrictions take effect

US: New rules on short-term rentals in New York City went into effect this week, with tens of thousands of listings expected to be affected.

The new legislation strengthens enforcement of existing rules on how short-term rentals are allowed to operate. Passed in January, the measure known as Local Law 18 mandates that short-term rental hosts register with city government.

“Registration creates a clear path for hosts who follow the city’s longstanding laws and protects travellers from illegal and unsafe accommodations, while ending the proliferation of illegal short-term rentals,” said Christian Klossner, of the New York City mayor’s office of special enforcement which is overseeing implementation of the new rules.

The move comes after a state Supreme Court judge dismissed a lawsuit brought by Airbnb against New York City over what it called “extreme and oppressive” restrictions and a “de facto ban” against its short-term rental operations in the city. The city responded by saying it will spend time working with platforms to use its verification process.

Legal short-term rentals are properties with no more than two people hosted. The host has to reside in the dwelling unit, and guests must have access to all parts of the home. Under the tighter regulations, eligible hosts must prove they live in the dwelling they are renting out and that the home meets municipal safety codes and other regulatory requirements. Hosts in violation of the new legislation could face fines from $1,000 to $5,000.

Platforms such as Airbnb and Vrbo are required to make sure anyone using their platform in New York follows city rules.

There are currently more than 40,000 Airbnb listings in New York, according to Inside Airbnb, a housing advocacy group that tracks listings in US and world cities. That number is expected to contract significantly under the new ruling.

Theo Yedinsky, global policy director for Airbnb, said the latest enforcement would harm the New York tourist economy. “New York City’s new short-term rental rules are a blow to its tourism economy and the thousands of New Yorkers and small businesses in the outer boroughs who rely on home sharing and tourism dollars to help make ends meet. The city is sending a clear message to millions of potential visitors who will now have fewer accommodation options when they visit New York City: ‘You are not welcome.’”


Be in the know.

Subscribe to our newsletter »