Airbnb came into the headlines in New York last summer when City Council voted unanimously to enact a law that would require Hosts to disclose information including address of properties and identity to the city. City officials and the Mayor argue that Airbnb has essentially created an illegal hotel industry within the city. New York is one of the largest cities for the home sharing service. Under existing New York State law, most buildings do not allow an apartment to be rented for less than 30 days unless the permanent tenant is living in the apartment at the same time. City officials hoped this law would crack down on those violating this law and remove listings from Airbnb.
The law passed last summer stated that the detailed information pertaining to the units would need to be provided to the city monthly. Airbnb and Homeaway brought a law suit against the City, claiming that the law was unconstitutional. The law was slated to go into effect next month, however, a Federal Judge has blocked the enactment of this law in Manhattan Court.
Based on the recent ruling, here’s what you need to know:
The law is blocked from going into effect based on the premise that the collection of the data would be in violation of the 4th Amendment and would subject hosts to involuntary search and seizure.
This blocking is not necessarily permanent! It will be blocked will the litigation between parties continues. The outcome of the litigation will be important
City officials arguing that many people are running illegal “hotels” as they are violating the short-term rental law, and having guests in units for very short terms, creating a “revolving door” which could be potentially dangerous to other building residents
It is important to remember, if you are considering listing a property with Airbnb, under New York State law, short-term rentals cannot be less than 30 days unless the permanent tenant is also occupying the unit. This was and still is a State Law!
We anticipate that many people are in violation of this, and that is what the proposed legislation was hoping to crack down on. If you are listing your property on Airbnb in New York City, ensure you are adhering to all laws.