ALBANY, N.Y. — New York state enacted one of the nation’s toughest restrictions on Airbnb on Friday with a new law authorizing fines of up to $7,500 for many short-term rentals.
ALBANY, N.Y. — New York state enacted one of the nation’s toughest restrictions on Airbnb on Friday with a new law authorizing fines of up to $7,500 for many short-term rentals.
The measure signed into law by Democratic Gov. Andrew Cuomo applies to rentals of fewer than 30 days when the owner or tenant is not present.
Supporters of the measure say many property owners use sites like Airbnb to offer residential apartments as short-term rentals to visitors, hurting existing hotels while taking residential units off the already expensive housing market in New York City.
“Today is a great day for tenants, seniors, and anyone who values the safe and quiet enjoyment of their homes and neighborhoods,” said Manhattan Democratic Sen. Liz Krueger, a co-sponsor of the bill.
“For too long companies like Airbnb have encouraged illegal activity that takes housing off the market and makes our affordability crisis worse.”
Airbnb said it would immediately file a lawsuit challenging the law.
“In typical fashion, Albany backroom dealing rewarded a special interest — the price-gouging hotel industry — and ignored the voices of tens of thousands of New Yorkers,” said Josh Meltzer, Airbnb’s head of public policy in New York.
Enforcement of the new laws will be a challenge.
Thousands of short-term apartment rentals are listed for New York City despite a 2010 law that prohibits rentals of fewer than 30 days when the owner or tenant is not present.
The new law won’t apply to rentals in single-family homes, row houses or apartment spare rooms if the resident is present.
The complicated rules mean many New Yorkers may not know whether they can legally rent out their homes — and Airbnb says it does not have the ability to remove listings that violate the 2010 law.
Supporters say the imposition of fines will likely be driven by complaints from neighbors.
Assemblywoman Linda Rosenthal said the intention is to go after commercial operators who rent large numbers of vacant units in multiapartment buildings.
“That’s who we’re targeting,” said the Manhattan Democrat, who sponsored the bill in the Assembly.
Airbnb mounted a last-minute campaign to kill the measure and this week proposed alternative regulations that the company argued would address concerns about short-term rentals without onerous fines.