(The Center Square) — Visitors to New York City will find fewer choices for accommodations with a new law cracking down on short-term rentals taking effect on Tuesday, despite claims it will take a big bite out of the Big Apple’s tourism.
The new law, approved in 2020, requires hosts on Airbnb, Booking.com and other short-term rental platforms to register with a city agency and set new restrictions on hosts, including limits on the length of stays and the number of visitors.
City officials say the new restrictions aim to reduce thousands of illegal listings, but the companies say it will hurt hosts and impact the city’s tourism.
“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,” Airbnb said in a statement.
Rental listings without a registration number will be unable to accept new reservations now that the law, known as Local Law 18, has gone into effect, Airbnb said. The company said it will honor reservations made before Tuesday for stays through Dec. 1, and will refund the service fee. After that, it will cancel and refund reservations at uncertified properties, it said.
In June, three Airbnb hosts sued the city over the regulations, arguing that the new law creates an “extreme and oppressive regulatory scheme” that equates to a “de facto ban against short-term rentals” and that enforcing the rules would make it harder for hosts to do business.
But a state judge rejected those arguments, ruling that requiring Airbnb to verify listings is “inherently rational” to ensure it isn’t facilitating unlawful activity. She cited data showing the city has fielded more than 12,000 complaints about short-term rentals from 2017 to 2021.
City officials have defended the law, saying it’s aimed at cracking down on illegal renters and ensuring there are enough housing units for full-time residents as New York grapples with a shortage of affordable housing.
The Mayor’s Office of Special Enforcement issued a statement saying the new registration system “creates a clear path for hosts who follow the city’s long-standing laws and protects travelers from illegal and unsafe accommodations, while ending the proliferation of illegal short-term rentals.”
The agency has called illegal short-term rentals a “public nuisance,” citing nearly 12,000 complaints from 2017 to 2021 involving late-night partying, excessive noise and criminal activity.
Amid those concerns, New York has been embroiled in legal challenges with Airbnb for more than a decade over local efforts to tighten restrictions on short-term rentals.
In 2016, Airbnb sued New York State over a law banning advertising for short-term rentals but dropped the legal challenge after New York City agreed not to enforce the law.
The company settled another lawsuit with the city in 2020 over reporting requirements for short-term rental listings.
