As of September 5th, 2023, individuals searching for short-term rentals on Airbnb in New York City may notice a limited number of available options. The city’s officials have recently begun enforcing new regulations that require hosts to file a registration application and meet specific requirements in order to rent their homes to guests for less than 30 days. According to these regulations, hosts are only permitted to rent out their homes for short-term stays if they are also occupying the property and can have a maximum of two guests at a time. It is important to note that these requirements are not completely new, as they are a part of preexisting rules on rentals. The only novelty lies in the implementation of the Short-Term Rental Registration Law itself.
To ensure compliance with this new law, the NYC Office of Special Enforcement has partnered with booking platforms like Airbnb and Vrbo. These platforms will now be responsible for confirming whether hosts who list their homes for stays shorter than 30 days have obtained approval from the authorities. A recent article by The New York Times revealed that, as of August 28th, only 257 registration applications were approved out of the 3,250 that were submitted. Considering that Airbnb estimates nearly 15,000 hosts had short-term rental listings across NYC just last month, thousands of listings may potentially be removed from the platform.
Airbnb, recognizing the impact of these regulations on its operations, referred to the law as a “de facto ban” on short-term rentals and attempted to challenge its enforcement through a lawsuit. Unfortunately for the company, the lawsuit was dismissed last month. Theo Yedinsky, Airbnb’s global policy director, expressed concerns about the impact of the regulations on NYC’s tourism economy. Yedinsky stated, “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.”
The city’s authorities, on the other hand, argue that the enforcement of this new law will help prevent the loss of housing to illegal short-term rentals. They contend that hosts renting their homes for short periods contribute to the existing shortage of housing in the city, driving up living costs as a result.
In response to the new regulations, Airbnb has announced its plans for compliance. The company has assured individuals with reservations for check-ins on or before December 1st that their stays will not be canceled. However, Airbnb will refund any fees it received in connection with these bookings to adhere to the new rules. Beginning on December 2nd, all bookings will be canceled, and guests will receive refunds. Moreover, hosts who only allow short-term bookings will have their listings converted to only offer long-term rentals if they allow bookings for 30 days or more. Listings that exclusively allow short-term bookings will be deactivated.
With the implementation of these new regulations, the short-term rental landscape in New York City will likely undergo significant changes. The impact will not only affect Airbnb and other booking platforms but also visitors who prefer the convenience and flexibility of short-term rentals. The intent behind these regulations is to address the housing shortage and mitigate its effects on the cost of living in the city. However, the strict enforcement of these rules may leave tourists with limited accommodation options during their visits to the Big Apple.
