New York City's new laws on short-term rentals took effect on Tuesday, September 5, which will have major ramifications for tourists who were expecting to find an alternative to the city's expensive hotel prices. As a result, home-sharing giant Airbnb announced it has had to cease taking certain bookings in the city.
New Short-Term Rental Policies
According to AP News, the new regulations are an attempt to put a stop to the current unrestricted situation that exists in the city when it comes to renting out apartments on a nightly or weekly basis to visitors.
Only registered hosts are permitted to provide short-term rentals of less than 30 days under the new system. When renting out their property, hosts must be there in person and available to their visitors 24/7. No more than two visitors are permitted at a time, which essentially excludes families.
Restrictions were pushed for by officials and housing activists who said they were required to prevent homes from functioning as hotels in disguise. According to Murray Cox of Inside Airbnb, a housing advocacy organization that tracks Airbnb's expansion across the globe, residential apartments in New York City should be for residential use.
About Fairness
Legal action has been taken by Airbnb because, as the company sees it, the regulations amount to a prohibition and would negatively impact tourists searching for cheap lodging.
The firm said on August 21 that it would no longer accept short-term bookings from any host who had not submitted either a municipal registration number or proof showing it was in progress. When the city's verification system was fully operational, it stated that temporary listings would be prohibited on the site unless a registration number was provided.
There were complaints from some hosts whose houses were smaller than average that they were being unjustly grouped in with hotels and motels.
Krystal Payne, who owns a two-family property in Brooklyn and was renting out one of the units to help pay her mortgage, told AP News, "I think this is a huge indication that our elected officials have let us down."
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Issues With Nightly, Weekly Rentals
The city council passed the ordinances in January 2022, according to The Washington Post, but they did not go into effect until this past month due to legal challenges.
Although internet rental listing services expanded visitors' choices in New York and benefited homeowners who leased out their properties while they were abroad, some locals have complained that the influx of visitors has driven up property prices in their districts. Tenants have complained about the building becoming more like a hotel, with guests and parties in the apartments.
After the court ruling last month, Airbnb released instructions telling hosts in New York City to register with the government or switch to long-term rentals if they have the option.
The business also said that any short-term reservations already made that had a check-in date on or before December 1 would be honored with a full refund of processing costs, but reservations with check-in dates after December 1 would be voided.
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