New York City, NY

New York City Imposes Strictest Rental Restrictions in the Country Costing AirBnB Hosts Thousands in Revenues

Sharee B.

AirBnB is one of the world's most popular rental companies in the world, with over 5.6 million listings in more than 100,000 cities. Their rise to fame has essentially made them the de facto vacation rental when it comes to traveling and site seeing.

Recently, officials in New York City have passed some of the strictest and stringent laws in the country when it comes to short-term rentals. One of them, the Multiple Dwelling Law, bans would be hosts from renting out apartments for less than 30 days, in buildings with multiple units. It also requires hosts to be physically at the property.

These regulations come after years of court battles, lawsuits, and complaints from hotel chains that argue the company has created an illicit rental market, which undermines the city's ability to provide a fair term for long-term tenants. They also come on the heels of skyrocketing prices on rental dwellings in a city with some of the highest taxes in the country.

The latest restrictions come just one year after the company went public in an IPO worth $3.5 billion dollars. Typically an AirBnB rental can bring in anywhere between $7,900 to as much as $3 million dollars, depending on the location, demand, and amount of bookings.

Some of the most profitable markets for short term rentals in the United States are:

  • Phoenix
  • Houston
  • Los Angeles
  • Kitty Hawk
  • Lake Powell
  • Malibu
  • Key West

For now, hosts are looking for ways to save their businesses, provide vacations rentals, and avoid breaking the law in the process.

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