On Thursday June 1st, Airbnb sued the City of New York for the restrictions it will apply from July on its short-term rentals, which require hosts to register with the local administration. Last year, New York passed a law with the aim of regulating the short-term rental business, as well as tackling illegal activities at a time when the major tourist city is suffering a housing crisis. New York is one of Airbnb’s main markets.
The company argues in its lawsuit, seconded by a group of hosts, that the new measures amount to “a de facto ban on short-term rentals” in the city and that the new law will drastically reduce available rentals.
Airbnb said its preference was to “work with the city on a regulatory framework that differentiates between New Yorkers who share their space responsibly and illegal hotel operators” but has had to change course after “exhausting all available avenues to a sensible solution.”
Many hosts have complained that the local government’s registration system is rather complicated. They argue that the systems makes it “nearly impossible” to get the green light to operate and, according to the lawsuit, Airbnb expects only a “minuscule number” to get it.
Beyond that, New York imposes other measures described as “punitive and burdensome” as it prohibits hosts from putting internal locks on room doors, or renting entire apartments where they will not be present for reasons such as travel. In a separate lawsuit, the hosts add that the measures further violate their right to privacy, as they are required to give “sensitive” information about their home, and “unfairly force them to understand a complicated web of legal codes.”
Situation in Europe
In November of 2022, the European Commission presented the legislative proposal to reform short-term rental (STR) platforms, seeking to update the registration process for hosts across the EU and oblige travel platforms to share data with public authorities.
The recent boom in short-term rentals through online platforms, which now amounts to about a quarter of all tourist accommodation in the EU, has put strain on several communities. Commenting on the Commission’s upcoming law on STR, the European Economic and Social Committee (EESC) urged national and local authorities to carry out impact assessments to see how such activities are affecting the lives of local residents and businesses such as hotels and other hospitality facilities.
While some lesser-known regions and cities have gained from the development of local tourism through more affordable STRs, the EESC argues, more popular tourist destinations are reaching breaking point. For example, in Venice, Florence or Barcelona, competition has set hotels and other conventional establishments on a collision course with Airbnb and other online platforms and brought local life close to congestion.
“Short-term rentals are an opportunity for regions and cities. They develop tourism, create new travels habits but also challenges. To overcome these challenges, we need regulation, to give the regions and cities the capacity to provide housing for all. Homes are for people, not for profit,” said Isilda Maria Prazeres Gomes, Mayor of Portimão in Portugal, during a debate with local leaders on STRs and natural resources.
