AIRBNB & NYC
by Adrivel Ruiz of Sovereign Associates
The End of a Love Affair? - It's one of the main topics in town.
Local Law 18 went into effect on September 5th here in New York City.
Almost every source confirms that a significant amount of Airbnb's inventory for NYC is gone. The reasons are straightforward. The adverse risks and nuisances of being a host have significantly increased. The New York Times explains:
"The main feature of the new rules is a requirement for residents to register with the city to rent homes on a short-term basis. Short-term rentals are only allowed if the host is present during the stay and if two guests or fewer can access the entire place.
To collect fees associated with short-term stays, booking companies must now check that a host's registration application has been approved or risk financial penalties: Platforms could be fined hefty for transactions involving illegal rentals. Hosts could also be fined.
It seems the intention is to expand the traditional rental market by making it more challenging for owners and renters to participate in the short-term rental platform. We will have to wait for the long-term effects of such changes. Some might be open to adapt, but others might resist it. We can't take the outcome for granted.
