New York Implements New Regulations on Airbnb, Creating Debate on Tourism and Short-Term Rentals

File photograph in which an Airbnb logo is registered on a stock indicator screen of the New York Stock Exchange Nasdaq, on a screen in Times Square, in New York (NY, USA). EFE/Justin Lane

New York ordered the popular hosting platform, Airbnb, a new regulatory framework that prohibits, among other things, rentals of less than 30 days. Otherwise, the tenants must stay with the hosts and the latter must be registered in a registration list with the city.

Another forceful instruction is that the owners may not have more than two guests at a time, a factor that restricts the rent by rooms.

This is the “Short-Term Rental Registration Law”, which addresses the challenges generated by the overwhelming growth of the tourist rental industry of this type.

Despite the fact that the legal document will enter into force next Tuesday, September 5, it has already generated a debate about the consequences it would bring to tourism, home rentals and the real estate market in the great metropolis.

Also read: These are the Colombian destinations that have booked the most on Airbnb since 2020

FILE PHOTO: People protest against the New York law on short-term rentals and Airbnb’s in New York, U.S., July 12, 2023. REUTERS/Brendan McDermid/File

The application affirms that once the recently created norm enters into force, during the first week about 5,300 reservations would be affected.

Airbnb has 38,500 registered apartments in New York, through which it generates income of 85 million dollars annually.

For now, the limitations apply only in New York. It is possible that the measure marks a turning point around the economic and social problems related to the platform.

Airbnb sued New York in June and managed to postpone until September 5 the entry into force of the legislation that sought to regulate the short-term rental business.

However, Judge Arlene Bluth, in a Manhattan state court, dismissed the company’s claim, considering it “rational” for the city to require hosts to register and control the legality of the accommodations it offers, something that the company came to qualify as a “de facto veto” to their activity, according to local media.

Keep reading: Changes in Airbnb in Colombia: these are the modifications proposed by the new law that is advancing in Congress

Airbnb’s director of global policy, Theo Yedinsky, criticized the decision in a statement to the media, saying the impending restrictions will hurt tourism and thus residents of “off-centre neighborhoods who rely on home sharing.” to make ends meet, and nearby companies.

According to Airbnb’s lawsuit, short-term rentals in New York City alone accounted for net sales of $85 million in 2022. The company had revenue of $8.4 billion for the year.

Building on the Upper East Side of New York

See also: The other side of the rental drama: the temporary rental boom prompted the construction of exclusive buildings for the “Airbnb model”

The latest Airbnb financial results, published at the beginning of August, in the second quarter of 2023 the company had a record number of active accommodations, 7 million worldwide, and achieved a profit of 650 million dollars, 72% more year-on-year .

With information from EFE.

2023-08-31 12:37:26
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