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The Ongoing Feud Between Airbnb and New York City, Explained by Bisnow, Sponsored by Mazars

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The Ongoing Feud Between Airbnb and New York City, Explained by Bisnow, Sponsored by Mazars REAL ESTATE THE ONGOING FEUD BETWEEN AIRBNB AND NEW YORK CITY, EXPLAINED BY BISNOW, SPONSORED BY MAZARS MAYOR BILL DE BLASIO HAS SIGNED A NEW LAW REGULATING ILLEGAL SHORT- TERM RENTALS IN NEW YORK CITY. Under this legislation, which was originally proposed by lawmakers in June, the city will be able to track data on Airbnb users and hold hosts responsible for illegal short-term rental activity. Lawmakers are confident that this bill would free up rental units that could be designated as affordable, and help the city maintain safe living environments. "With this legislation, we are going to go after the most egregious operators, and we're going to help educate New Yorkers about the legality of short-term rentals in New York City," Council- woman Carlina Rivera said. users communicate. The company has criticized Airbnb has not backed down, but city council The law will require Airbnb and online rental the law using several mechanisms, including its members have publically demystified these services to disclose personal information about own platform. In June, the company posted a claims. hosts and their properties to the Office of Special blog entry accusing the bill’s sponsors of bias. Enforcement each month, the New York Times The hotel industry, a group that has long been "The city's not anti-Airbnb," District 4 Council- reported. To comply with this law, companies skeptical of Airbnb driving traditional hospitality man Keith Powers said to ABC 7. "But we have and occupants will need to submit the name of assets out of business, has been one of the concerns around affordability, quality of life and each host, physical address and phone number largest proponents of this law. making sure people who are paying the rent and of each host in addition to the URL to each active living in a neighborhood have peace and quiet." host’s online profile. Companies will also need to "Many in the hotel industry, who are losing valu- inform the OSE how many days each proper- able tourism dollars from short-term rentals on Airbnb has begun to re-examine its business ty was rented, and all fees paid to the rental websites such as Airbnb, argue that these units operations. As the legislation comes into focus platform. are not held accountable to the safe regulatory over the coming months, the company has environment in areas such as fire and safety, agreed to work alongside the city to develop a Those who violate this law by failing to disclose amongst other concerns," Mazars partner Donald plan of action. listings will face at least $1,500 in fines. The Bender said. legislation will also enforce a New York State This feature was produced in collaboration law signed in 2016 making it illegal to advertise Similar laws have been enforced in other cities, between Bisnow Branded Content and Mazars. unoccupied apartment rentals under 30 days on like San Francisco, Barcelona and Vancouver. Bisnow news staff was not involved in the pro- websites and platforms like Airbnb. Failure to When San Francisco cracked down on its short- duction of this content. comply with this state law could cost violators up term rental policy, Airbnb’s listings decreased by to $7,500. 50%. New York City, Airbnb’s most active market Donald is a Partner in our Long Island Practice. at 52,000 listings, could see a similar drop. He can be reached at 516.620.8420 or at Donald. The city's new legislation will ultimately redefine [email protected]. Airbnb’s business model and disrupt the way September/October 2018 | 21.
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