New York City Airbnb crackdown starts this week: What hosts need to know about the new rules

By Michael Grothaus

Starting on Tuesday, September 5, Local Law 18—passed in New York City in 2022—will take effect. The law will radically alter the landscape for home sharing on Airbnb and other platforms in the Big Apple. The biggest change will be the requirement that Airbnb hosts in the city register themselves with the Office of Special Enforcement (OSE) to obtain a license to host on Airbnb. 

But besides registering for a license, hosts in NYC will face other new rules and restrictions, notes Skift, including:

    Hosts must no longer have locks on bedroom doors as hosts will be required to offer a “common household” with the renter.

    Hosts must live in the unit with the renter.

    Hosts cannot rent their units while they are away on vacation or for work since they must be living in the rental unit while the renter is there.

    Hosts can only offer stays that are shorter than 30 days in duration. 

    Hosts must also certify with the OSE that they understand all the relevant multiple dwelling laws, construction codes, and zoning rules in New York City.

Hosts that are found to be in violation of the new rules can be fined as much as $5,000 per short-term stay or up to three times the revenue that the dwelling generates. New York City passed the new laws in an effort to clamp down on hosts renting units that don’t live up to safety and other regulations in order to stop the Airbnb-ification of the city. Airbnb has long been criticized by local residents and city officials around the world for driving up rents and making it more difficult to find housing.

Citing data from AirDNA, Skift says that as of July 2023, there were 47,000 total listings in New York City, out of which 23,000 were active listings. Under the new rules, 7,500 of these listings will likely no longer be eligible for hosting. At least 9,500 of the listings are still eligible for hosting—provided they register with the OSE by September 5.

 

The problem for hosts that want to comply with the new rules is that the OSE has so far only reviewed 808 of the applications submitted to date. That means that about 75% of all submitted applications so far are still pending.

The new rules will not just affect Airbnb hosts, but any person who offers a short-term rental. Hosts who use platforms like Vrbo and Booking.com will also be affected. Airbnb has sued over the law, though it will still come into force after Labor Day. 

While the law will be a headache for many hosts—and potentially end their ability to list their units—it should have little impact on Airbnb’s revenues. As Skift notes, in 2022 New York City bookings accounted for only about 1% of Airbnb’s revenues.

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