Airbnb Files Lawsuit Against New York Over Restrictive Measures on Short-Term Rentals

Airbnb Inc. sued New York City on Thursday over a new law it called an “effective ban” on short-term rentals that takes effect in July and that the company says will limit the number of rental units in the city. .

City councils across the United States are increasingly adopting ordinances to regulate short-term rentals. In some cases, property managers must obtain licenses and pay registration fees or limit the number of short-term rentals in commercial areas.

The company’s filing with the New York State Supreme Court says the New York City Council, with legislation passed in 2022, has effectively implemented “its most extreme and oppressive regulatory regime to date, serving as a de facto ban on short-term rentals in New York City.”

In a letter to the host, Airbnb said: “Today’s deposit will not be due until all available avenues have been exhausted to reach a reasonable resolution with the city.”

According to the filing, the law would make it harder for hosts to do business and require them to register with the New York City Mayor’s Office of Law Enforcement (OSE) and prove they comply with a “maze of complex regulations.” the planning act, the apartment building act and the apartment maintenance act and the construction act. .

Airbnb said in the filing that reviews of OSE applications ensure that “only a small number of hosts are granted registration.”

OSE did not immediately respond to a request for comment.

Airbnb said that since the first week of July, more than 5,500 short-term rentals in New York had been booked for more than 10,000 guests.

The company said it left a previous law that took effect in 2021 that pushed 29,000 property managers out of New York’s short-term rental market. According to the filing, Airbnb’s annual net income in New York in 2022 was $85 million.