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Housing


NEW YORK’S CRACKDOWN ON AIRBNB BEGAN TUESDAY. HERE’S WHAT THAT MEANS FOR RENTERS
AND HOMEOWNERS.

By Aidan Graham Posted on September 5, 2023
New regulations requiring landlords to register their property with the city in
order to offer short-term leases went into effect on Tuesday.
WikiMedia Commons

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The laws governing New York’s rental market changed dramatically on Tuesday,
when regulations went into effect requiring landlords who offer short-term
leases through services like AirBnB to register their property with the city. 



The effect of the new regulations, known as Local Law 18, is likely to greatly
reduce the number of short-term rentals in the five boroughs, as proponents of
the measure look to increase the housing stock of longer-term rental units and
increase safety and transparency in the short-term market. 




REGISTRATION REQUIREMENTS

Getting registered with the city is an arduous process, which AirBnB has likened
to a “de-facto ban” on the service. 



The city, however, claims the registration requirement is necessary to enforce
existing laws, most notably that hosts must be present in the apartment while
short-term renters are staying, rather than handing over the entire property to
guests. AirBnB, for their part, notes that this measure is an outlier among
major United States cities, which largely allow un-hosted stays. 

On top of that, landlords are only permitted to allow two guests to stay in
houses and apartments when renting through AirBnB, Vrbo or other short-term
rental platforms.

Additionally, landlords are banned from having locks on any interior doors,
meaning that guests must have unfettered access to the entire property. 

While those requirements have been on the books for years, they have largely
been ignored — which the new registration requirements look to remedy. 

Beginning on Tuesday, hosts will face fines up to $5,000 for offering
unregistered short-term rentals, and platforms face penalties of $1,500 for
facilitating rentals of unregistered apartments and houses. 



By Aug. 28, the Office of Special Enforcement in New York City, which is tasked
with enforcement of short-term rental laws, had received 3,250 registration
applications, and granted only 257. 

That is a significant blow to the stock of short-term units, as almost 15,000
hosts have offered their properties on services like AirBnB in the five boroughs
in recent years.

AirBnB had sued to stop the new rule from taking effect, but that lawsuit was
dismissed by a judge last month. 




EFFECTS ON SHORT-TERM RENTALS 

Elegant old apartment buildings facing Central Park.Photo via Getty Images

Advocates in favor of the law say that landlords who offer their properties to
renters for less than 30 days at a time are effectively decreasing the number of
housing units for longer-term renters, which drives rent prices up for New York
residents.



Meanwhile, residents living near housing units offered as short-term rentals
often complain about excessive noise from tourists, and fear a lack of safety
from a revolving door of unknown visitors in their area. 

Opponents of the measure, though, claim that the new measure will do significant
damage to the tourism industry in New York City — potentially driving would-be
visitors to New Jersey, or different destinations entirely. 

While hotels are still an option, building new hotels has become significantly
more difficult in recent years, and existing ones are largely concentrated in
Manhattan, whereas AirBnB rentals are more geographically diverse — with a
company spokesperson noting that New York City neighborhoods without hotels saw
over a million visitors stay in 2022. 

Additionally, platforms like AirBnB have argued that the laws will harm New
Yorkers who rely on short-term rentals to make money. 

“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,” an AirBnB
spokesperson said in a statement. 

“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.”

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ABOUT THE AUTHOR

AIDAN GRAHAM

Aidan Graham is a reporter for amNewYork.

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