Short-term rental rules may limit NYC options
Supply of Airbnb, Vrbo spots expected to drop
Travelers planning to visit New York City may find it harder to book an Airbnb.
The city will begin enforcing its Short-Term Rental Registration Law on Sept. 5, requiring short-term rental hosts to register with the Mayor’s Office of Special Enforcement. The law, which was adopted in January 2022, could significantly reduce visitors’ choices when it comes to lodging.
“It seems clear to me, based upon the current speed at which the city is processing applications for hosts, that a lot of supply will drop out of what’s currently available,” said Sean Hennessey, clinical associate professor at the New York University School of Professional Studies Jonathan M. Tisch Center of Hospitality.
Here’s what to know:
What are the rules?: The new city law is aimed at cracking down on shortterm rentals. It requires hosts to acknowledge and comply with regulations and forbids booking platforms like
Airbnb, Vrbo and Booking.com from processing transactions for those that are unregistered.
“You cannot rent out an entire apartment or home to visitors for less than 30 days, even if you own or live in the building,” the Office of Special Enforcement said on its website. “This applies to all permanent residential buildings.”
Hosts can only offer short-term rentals if they remain with guests in the apartment or unit. They are also prohibited from having more than two paying guests at a time, among other rules.
“There are penalties for both hosts and booking services who fail to comply with the requirements of the law,” the office said.
Properties with Class B status are exempt from the registration requirement, but the office said homes and apartments are unlikely to fall into that category.
Earlier this month, a New York judge dismissed lawsuits filed by Airbnb and three hosts over the rules, saying the restrictions were “entirely rational.” Supreme Court Judge Arlene P. Bluth said such a system will help identify many illegal short-term rentals before they’re listed on the Airbnb platform.
The city received nearly 12,000 complaints regarding illegal short-term rentals from 2017 to 2021. Housing advocates have said listing whole apartments on the platforms deprives the city of supply.
“It has long been our goal to work with New York City to create sensible home-sharing regulations for our host community, and for the better part of the last decade, we have worked hard to find a path forward,” Theo Yedinsky, Global Policy Director for Airbnb, told USA TODAY in an emailed statement.
“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,” he added. “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.”
Christian Klossner, Executive Director of the Mayor’s Office of Special Enforcement, said registration “creates a clear path for hosts who follow the city’s laws and protects travelers from illegal and unsafe accommodations.”
“We have consistently worked with hosts and platforms to ensure they are aware of their requirements under the law, and intend to continue doing so before enforcement begins Sept. 5,” he told USA TODAY in an emailed statement.
⬤ Impact on travelers: Not only will travelers be unable to book unregistered properties, but existing reservations could also be in jeopardy. Because the city has a “huge backlog” of applications, they may not be able to get approval in time, according to Hennessey.
The office had reviewed 744 applications out of 2,789 submitted as of Monday, according to data provided by the office. Among those, 227 were approved, 53 were denied and 464 were sent back to applicants for more information or to fix deficiencies.
Some listings may also drop out of the market entirely because they don’t meet the requirements, Hennessey added. While hosts will likely share any updates with guests, he said it would be “prudent” for travelers with upcoming reservations to proactively reach out to rule out any disruptions.
Group travel could get more complicated, forcing visitors to rent multiple hotel rooms instead of one multi-room Airbnb, for example, Hennessey said.
“So, that is going to make New York City somewhat less attractive or less affordable as a vacation destination,” he said.