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Should short-term rentals such as Airbnb be illegal? [1]

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Date: 2023-09-11

This past week on Nuance we talked about the new law in New York City that went into effect last week affecting AirBNB’s in the city. Some are speculating that it is going to be a killer of the short-term rental industry or at least severely cripple it.

Local Law 18, which came into force Tuesday, is so strict it doesn’t just limit how Airbnb operates in the city—it almost bans it entirely for many guests and hosts. From now on, all short-term rental hosts in New York must register with the city, and only those who live in the place they’re renting—and are present when someone is staying—can qualify. And people can only have two guests. — Wired The End of Airbnb in New York

Technically short-term rentals have always been afoul of an old law preventing rentals of under 30 days. However, the city was having a difficult time of enforcing it. Local Law 18 changes that and will severely cut down on these types of rentals available. It’s not just a simple matter of registering with the city now but it also requires approval. Of the 3250 applications submitted by the end of August, only 257 had been approved.

Hosts face other stipulation as well, including fines of up to $5000 for being unregistered and a rule that stipulates that all doors must remain unlocked throughout the whole property so occupants can access the entire place.

There is push back from some residents on the grounds of owner rights and freedoms to use their properties how they see fit. AirBNB’s are not only used to create business income but some rely on the rentals as a much needed supplement to their regular income. Customers could also lose out by limiting their options for places to stay. On the other hand, the rise of AirBNB type rentals has been a factor in housing troubles including cost increases.

This move by New York City could be mimicked by other cities across the country impacting the whole industry.

Do you believe that short term rentals such as Airbnb should be illegal?

Additional:

A new law in NYC affecting AirBNBs goes into effect

The End of Airbnb in New York

NYC's new Airbnb rules are bigger than the Big Apple



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