It’s already against the law for NYC residents to rent out their pads for 30 days or less when they’re not present. But new legislation has put another dagger through the heart of Airbnb.
Last Friday, New York Governor, Andrew Cuomo, signed legislation that forbids apartment owners from advertising a rental that violates the existing NYC law – a violation that attracts a fine of up to $7,500.
The new law therefore makes it even harder for Airbnb – undoubtedly the most popular and successful online lodging platform – to establish a foothold in the lucrative NYC market, and may put a serious halt to Airbnb’s phenomenal growth over the past eight years.
Well, that’s if Airbnb sits by without a fight, which it is certainly not prepared to do.
Brian Chesky, co-founder and Chief Executive of Airbnb / Source: www. Reuters.com
According to Airbnb, in its court challenge that was immediately filed after the new law, the statute penalises the company over the actions of its users, which they say is prohibited by federal law.
As such, they are seeking to overturn the legislation.
Unfortunately for Airbnb, the new law suit is just one of many legal battles the lodging platform is currently embroiled in, with the accommodation provider already in the throes of a legal fight in its home city San Fransisco over the legality of short-term rentals.
Recently, Berlin passed a law banning most short-term rentals, and both Barcelona and Amsterdam are currently imposing significant fines on users that violate these laws.
Across the pond, both London and Dublin are also considering tightening existing regulations on this unprecedented global accommodation phenomenon.
Source: www.pbs.org
Critics of Airbnb claim that the new phenomenon is driving up the cost of housing in their neighbourhoods, effectively displacing long-term residents with tourists and transient workers.
Back here at home, the strengthened opposition to Airbnb in the Big Apple comes less than a week after a NSW Legislative Assembly Inquiry recommended a reduction in regulation, much to the chagrin of local residents and accommodation operators.
“It is ironic that at a time when city administrators across America and Europe are imposing major restrictions on unregulated commercial short-term accommodation operators that a NSW parliamentary committee should be advocating a softening of regulations.”
Carol Giuseppi, CEO, TAA (Tourism Accommodation Australia).
The TAA is calling on Australian governments of all states and levels to take action to protect resident groups and regulated accommodation operators.
Recently, Qantas jumped into bed with Airbnb, giving its loyalty members the chance to earn points when they book their Airbnb accommodation through the airline’s website.
