Skip to main content

Airbnb drops NYC lawsuit after agreement on short-term rental law enforcement

airbnb nyc lawsuit settled
It’s official: New York City and Airbnb will work together. The hosting company agreed to terms of enforcement of a short-term apartment rental law by New York City and dropped a lawsuit against the city that was filed in October, according to Reuters.

The law, passed by the New York state legislature in June but remaining unsigned by Governor Andrew Cuomo until October, called for fines up to $7,500 for property owners who advertised short-term apartment rentals in buildings of “three or more units.” So it doesn’t apply to someone renting a single room in their home, a basement apartment in a single family home, or even to half of a two-family home. The law was meant for listings on Airbnb and other peer-to-peer sites that had multiple units for rent in what were clearly commercial arrangements and considered “illegal hotels.”

Related Videos

More: Airbnb files federal lawsuit after passage of prohibitive New York bill

Airbnb filed suit because it believed the law’s wording was not clear enough to protect online platforms such as itself, which could not be held responsible for landlords who broke the law. If the listing services were charged, the risks of fines and liability would be more than the companies could bear.

In settling the suit, the city agreed it would focus on individual property owners who violated the law, not the listing companies. New York state attorney general Eric Schneiderman had said the state would not enforce the law, leaving enforcement to the city.

New York City mayor’s office spokesperson Melissa Grace said, “The city will enforce this and other existing laws against bad actors, and appreciates the additional enforcement powers this new tool provides to protect New Yorkers and visitors from unsafe conditions.”

Airbnb agreed, citing the agreement as a way to reassure listing hosts while complying with the law. “We look forward to using this as a basis to finding an approach that protects responsible New Yorkers while cracking down on illegal hotels that remove permanent housing off the market or create unsafe spaces,” Airbnb said.

Editors' Recommendations

Rock legend David Bowie’s NYC apartment up for grabs for $6.5 million
bowie tribute show to be live streamed globally on friday david

Are you a music lover looking for somewhere to live out your golden years? You could do worse than David Bowie’s New York City apartment, which went on the market last month for $6.495 million.

As keepsakes go, the apartment where rock’s most enigmatic shapeshifter lived from 1992 to 2002 is pretty sweet. The three-bedroom home sprawls over 1,800 square feet and has a stunning view of Central Park. It features a limestone foyer; a walk-in closet that was custom-built for Bowie’s wife, Iman; two master bedrooms; and a master bath with a rain shower. The apartment also features state-of-the-art appliances including a Miele oven and dishwasher, a Liebherr refrigerator, and Gaggenau cooktop.

Read more
Look out, vacationers — Airbnb may be entering the long-term rental space
airbnb

Your favorite short-term vacation rental site may soon be rebranding itself. According to a new Bloomberg report, Airbnb, which has hung its hat on finding temporary residences for nearly a decade, is looking to diversify its offerings with some long-term options.

According to Bloomberg's sources, Airbnb has secured the services of consulting firm McKinsey & Co. to look into the feasibility of diving into a different marketplace -- that of the long-term rental business. The sources also suggested that McKinsey's research will involve a "competitive analysis of Craigslist," as the online marketplace boasts an enormous user base at around 60 million U.S. visitors every month. Of course, one of the most popular sections on Craigslist is real estate.

Read more
The new frontier in London office rentals: Your home
hermit office rentals london offices

We’ve finally gone there. People are now renting out their homes during the day. That’s the notion behind new startup Hermit Offices, which aims to enable startups and other small businesses to set up office in residential homes and apartments in central London when the owners are at work or otherwise away.

Here’s how it works: Entrepreneurs and small businesses peruse the properties open for renting on Hermit’s website — the current offerings range from £600 (about $750) to £1,800 pounds (over $2,200) per month and can accommodate four to seven team members. The renters pony up a month’s rent as a deposit, and Hermit takes care of rental payments, month-to-month leases, supplementary insurance, and identification verification. The property owners agree not to occupy the space during their scheduled rental, such as when they are at work, and to provide a work surface, broadband Wi-Fi internet, a place to sit, a bathroom and ideally a kitchen. Access is typically limited to between 8:30 a.m. and 6 p.m.

Read more