Local Law 18 Passes Making It Almost Impossible For AirBnB In The Big Apple
New York City has implemented Local Law 18, an exceptionally stringent regulation that doesn’t just place limitations on Airbnb’s operations within the city but, for many guests and hosts, virtually equates to an outright ban. This law mandates that hosts engaged in short-term rentals must register with the Mayor’s Office of Special Enforcement (OSE). Moreover, it forbids booking service platforms like Airbnb, VRBO, Booking.com, and others from processing transactions related to unregistered short-term rentals. Commencing on September 5, 2023, the initial phase of Local Law 18 enforcement by OSE will primarily involve working closely with booking platforms to ensure their adherence to the city’s verification system, correct verification processes, and the cessation of processing unverified transactions.
In New York, there are landlords with extensive portfolios comprising hundreds of Airbnb listings. However, there are also New Yorkers who utilize Airbnb to make ends meet. They may rent out their residence when they’re away or lease part of a duplex to help offset their mortgage expenses. Airbnb also caters to a portion of the city’s 66 million annual visitors seeking more affordable and sometimes more spacious accommodation than hotels can offer. In 2022 alone, short-term rental listings generated $85 million in revenue in New York City. Although the city represents a relatively small segment of Airbnb’s global market, these new regulations illustrate how local authorities can effectively curtail short-term rentals almost overnight, thereby reducing their impact on densely populated residential areas.
For years, the city has maintained that existing laws prohibit individuals from renting out homes for periods of less than 30 days unless the host is present during the stay. The city has also stipulated that no more than two guests may stay at a property at a time, and they must have unimpeded access to the entire residence. As of last month, Airbnb estimated that nearly 15,000 hosts maintained active short-term rental listings throughout the city. As of August 28, the city had received approximately 3,250 registration applications, with only 257 of them approved. Additionally, New York City introduced changes pertaining to the maximum number of guests allowed to stay concurrently, stating that no more than two guests are permitted, and proposed a $5,000 fine for violations.
There are two significant aspects worth highlighting here. First, if a renter stays in your home for more than 30 days, as indicated, they are legally considered tenants, which can have implications discussed in another article about the reduction of landlord authority. This article explains how it can become prohibitively expensive and time-consuming to evict a tenant, partly due to an executive order signed by the current administration.
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