Thousands of NYC Airbnb listings vanished in September 2023 following the implementation of NYC’s Short-Term Rental Registration Law.
The ruling even lead to Airbnb filing a lawsuit against NYC. Now, the vacation rental company is voicing its concern.
“One year after passage, New York City’s unprecedented short-term rental regulations have failed to deliver on their promise to combat the housing crisis,” says an Airbnb blog post. “In the wake of stringent measures, consumers are instead facing all-time high hotel prices and residents facing all-time high rents.”
Will the strict rules lessen, or should visitors just opt for NYC hotels? According to Airbnb’s deep dive into Local Law 18 (LL18), a.k.a. The Short-Term Rental Registration Law, travel plans are more expensive for consumers, there hasn’t been a change in vacancy rates, and rents continue to increase. Theo Yedinsky, VP, Public Policy at Airbnb, called for a change in the company’s blog post:
“It’s time for New York City to re-evaluate LL18 and consider amendments that would at a minimum, allow homeowners to once again host guests. By rolling back parts of the law, the city can increase the supply of accommodations for consumers, support resident hosts, and revitalize local businesses that depend on tourism dollars.”
Will things change in NYC or will LL18 continue to remain in effect? Here’s what you need to know about the law. Keep your eyes peeled on this page for further updates.
What are the NYC Airbnb rules for short-term rentals?
The Short-Term Rental Registration Law, otherwise known as Local Law 18, requires short-term rental hosts to register with the Mayor’s Office of Special Enforcement (OSE). Without compliance and registration, transactions will no longer be processed through booking platforms including but not limited to Airbnb, VRBO, and Booking.com.
Booking platforms will work in tandem with Local Law 18 to certify that hosts are properly using the city’s verification system. Unverified transactions will not be processed on any of the platforms.
As of September 1, 2023, only 25% of 3,250 applications were approved by the city, according to Bloomberg.
What other rules do hosts and guests need to know?
The new law also requires hosts to be physically present in the home while its being rented. Therefore, the host will be staying in the same apartment or home as the guest, simultaneously. Plus, there is a limit of two people staying in the rental at the same time, deterring larger families to book on Airbnb in NYC.
What else is there to know about Local Law 18?
In addition to registration, the OSE must maintain a list of buildings across the city in which short-term rentals are prohibited. Buildings may be prohibited for short-term rentals due to laws, leases, or occupancy agreements. Visit NYC.gov for the Prohibited Buildings List.
Why did the city pass the Short-Term Rental Registration Law?
The City has proclaimed that previous regulations surrounding short-term rentals only compounded its imminent housing crisis, specifically arguing it has “pushed up rents and helped fuel New York City’s housing shortage,” as outlined by The New York Times.
How do hosts register?
Hosts will have to provide one proof of identity and two proofs of permanent occupancy to register. They must apply via NYC’s Short-Term Rental Registration Portal.
Are there any exceptions?
Hosts of short-term rentals in “Class B” multiple dwellings that have already been approved by the city were not required to register under the new law in 2023. Additionally, if a unit was being rented for 30 consecutive days or more, registration was not required. Moreover, registration for rent-regulated units would not be approved by the OSE.
What happens to previous Airbnb bookings?
All previous reservations in short-term rentals that were not registered were valid if they predate a December 1, 2023 check-in. Reservations past that date were canceled and refunded.