Airbnb takes legal action against NYC’s short-term rental limits.

Airbnb Fights Back Against NYC Law

Airbnb filed two lawsuits against New York City on Thursday, blasting a local law requiring hosts to register their rentals with the city.

The hospitality giant is taking a stand against Local Law 18, which went into effect in January 2023, requiring booking companies like Airbnb, Vrbo, and Booking.com to register with the Mayor’s Office of Special Enforcement for rentals under 30 consecutive days. Airbnb claims the regulations are “punitive and burdensome” and are in violation of federal and New York law.

Thousands of Rentals at Risk

The lawsuit states that over 5,500 short-term rentals, hosting more than 10,000 guests, are set for the first week of July. With around 42,000 Airbnb listings in the city, the impact of the law could be significant.

California is also taking steps to regulate short-term rentals, with Senate Bill 584 proposing a 15% tax on rentals under 30 days. The bill aims to provide assistance to low- and middle-income housing construction.

Chilling Effect on Aspiring Hosts

The new regulations in New York City could have a “chilling effect” on aspiring hosts, according to the lawsuit. Monetary fines and penalty violations of Local Law 18 will begin when the rule is enforced in July, with the portal to register rental spaces opening up in March.

Airbnb claims to have exhausted all available paths for a sensible solution with New York City and is now seeking a ruling against the “invalid and unenforceable” regulation.

One question remains: Will the courts side with Airbnb or the city?

“By imposing onerous registration requirements that will have a chilling effect on aspiring hosts, the City will foreseeably drive Airbnb’s business counterparties out of the marketplace,” the lawsuit states.

Stay tuned for updates on this ongoing legal battle.

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