Residents who violate the rules contained in the provisions put in place by the authorities of the city of New York for the use of short-term rental platforms could face fines of up to $5,000 for repeat offenses, and for the platforms the penalties would be up to $1,500 for transactions involving illegal rentals.
Offering homes for short-term rental in New York using platforms like Airbnb, Vrbo, and Booking.com has been limited following the implementation on September 5th of this year of stricter laws on how and when residents can do so.
The new regulations, which the city began enforcing after a series of legal challenges, also require hosts to register with the city hall in order to offer short-term rentals. To collect the fees associated with short-term stays, intermediary companies must verify that this registration application has been approved.
As of August 28, the city had received around 3,250 registration applications and only 257 had been approved.
The city said it would not remove guests from illegal short-term rentals unless there were health or safety risks in the apartment. Current reservations remain valid, but will be canceled and refunded starting December 2, according to Airbnb.
NYC's mayor's office argues that the proliferation of short-term rentals through Airbnb and other platforms has driven up rents and contributed to the city's housing shortage, increasing homelessness and representing unfair competition for the hotel industry, according to the Spanish-language newspaper El Diario.
Some residents also say that short-term rentals in their buildings bring a higher risk of crime, excessive noise, and cleanliness problems.
Airbnb claims the new rules amount to a “de facto ban” of the platform, and other critics say the city is bowing to lobbying from the hotel industry and blocking cheaper options for visitors.
For years, the city has maintained that existing laws prevent people from renting homes to guests for less than 30 days unless the host is present during the stay. Furthermore, no more than two guests are allowed at a time, and they must have easy access to the entire house.
But there are still numerous listings for apartment and whole house rentals, and the city has argued that companies like Airbnb are not monitoring their platforms aggressively enough to eradicate violators.
A city official stated in a July court filing that more than half of Airbnb's $85 million in net revenue from short-term rentals in New York City in 2022 came from illegal activities. The company disputes that figure.
Christian Klossner, executive director of the NYC Mayor's Office of Special Compliance, said the new rules would create a "clear path for hosts who follow the city's long-standing laws.".
In May of last year, it was determined that in New York the number of short-term rentals available had eclipsed that of apartments offered for long-term living, according to a comparison of reports from the real estate company Douglas Elliman and two Airbnb number processing sites.
More than 2 million New Yorkers live in rent-stabilized apartments. According to Airbnb critics, many of its expensive listings fall into that category, without the landlords or the public knowing.
According to The New York Times, the city estimates that about 10,000 Airbnb apartments in 2022 were fraudulent.
Source: El Diario/Milenio
