New Airbnb NYC law halts new reservations as new rules require owners to register with city and...

The availability of Airbnb rentals in New York City decreased significantly as a result of burdensome government regulations that were imposed on Wednesday, effectively transforming into a prohibition on vacation rentals.

The latest rules demand that hosts enroll themselves with the city administration - or else they may have to cough up a hefty penalty of $5,000 - and visitors are mandated to be granted unrestricted entry to the whole premises.

If the rental goes on for less than 30 days, the host is obligated to accompany the occupants. Moreover, only a maximum of two individuals are allowed to stay in the rental, which essentially means that numerous families will be barred from using Airbnb in New York City.

In a statement, Airbnb's global policy director, Theo Yedinsky, conveyed that the city is effectively communicating to numerous prospective visitors that they will now encounter limited choices for lodging in New York City. The underlying message being conveyed is that these visitors are not being welcomed.

Nonetheless, proponents of the legislation argue that these regulations are necessary within the sector and will aid in addressing the concerns raised by short-term rentals, such as excessive noise and disruptive parties.

Beginning on Wednesday, the limitations on short-term rentals in New York City came into force, encompassing the requirement for hosts to reside alongside their guests and necessitating rentals to be officially registered with the city.

Fans of Airbnb gather for a demonstration outside the municipal building in New York City in 2015.

Airbnb made an attempt to challenge the newly imposed regulations by taking legal action, however, the lawsuit was thrown out. Depicted in the image is a gathering organized by Airbnb outside the premises of New York City Hall in 2015.

The rules implemented in New York City have been put into action and resulted in a significant decrease in the number of available listings in all five boroughs. The company has announced that any existing reservations for short-term rentals with check-in dates on or after December 2 will be voided and guests will receive a full refund.

The leading platform for sharing homes informed its hosts in New York City that they must adhere to the recently implemented legislation, or else their rental listings might be disabled.

According to a recent report from Airbnb, approximately 15,000 hosts were actively renting out their homes in the city last month. However, as of August 28, the city authorities have received around 3,250 applications for registration under the new regulations, but only a mere 257 of them have been granted approval.

The Short-Term Rental Registration Law, which is also referred to as Local Law 18, was successfully enacted in January of 2022. According to city authorities, the act of leasing residences to tourists instead of local residents exacerbates the scarcity of housing in the city and contributes to the increase in living expenses.

The city was supposed to implement the law in March this year, however, Airbnb challenged the law in the legal system, arguing that the new regulations would negatively impact tourists seeking reasonably priced accommodations.

Additionally, the organization stated that the registration process was overly complicated and contended that the legislation essentially equated to a prohibition.

The lawsuit was thrown out in August, paving the way for the implementation of the regulation.

Airbnb stands to face substantial financial setbacks in one of its key and highly lucrative markets. The legal proceedings revealed that the company achieved a staggering $85 million in net earnings within New York City during the year 2022.

The value of Airbnb's stocks experienced a slight decrease of approximately 0.5% to $142.07 during the late trading session on Wednesday.

The hotel industry may find an advantage from the regulation, as it faces competition from platforms such as Airbnb. STR, a company that examines data in the field of hospitality, reported that New York City had the highest rate of occupied rooms (85.4 percent) compared to other markets. This was a 1.7 percent increase from the previous year, and New York was the only market that achieved an average daily rate exceeding $300.

Airbnb stands the risk of suffering significant monetary losses in one of its major and highly lucrative markets. Depicted here are two rental accommodations in New York City that are still available for booking through the platform, seemingly adhering to the recently implemented rules.

NYC hosts are desperately seeking assistance since the implementation of the latest regulations. As of August 28, approximately 3,250 registration applications were received by the city, yet a mere 257 of them were granted approval.

Within a Facebook community dedicated to experienced hosts on various vacation rental platforms such as Airbnb, VRBO, and Booking.com, hosts based in New York City have been reaching out for assistance.

Jamaal Johnson inquired the group for any input from folks in the NYC market regarding New York's recent decision to essentially close down short-term rentals (STRs) for everyone, except those made at least 31 days in advance for a class B dwelling.

According to Hannah Nguyen, she has been a host for a considerable amount of time but has now been abandoned and left to deal with the consequences.

'I began using Airbnb in 2011 in Brooklyn, New York. I have experienced numerous alterations with Airbnb and New York City over the years, but since September 5th, I am forbidden from offering Airbnb roomshares due to the latest legislation,' she expressed.

Tenants have also been infuriated by the recent rules that crushed numerous vacation aspirations.

"Only forty-eight hours ago, I was dealt a blow when my initial Airbnb booking, which would have marked my first stay in two years, was unexpectedly canceled a mere twelve hours before my scheduled arrival. As a result, I had to engage in a lengthy interaction with customer service in order to secure an alternate accommodation," shared Eric Cherry, an individual active on Facebook.

According to Mariah Kenner, a certain individual named X, if your chosen Airbnb host in New York City suddenly cancels on you just 20 days before your planned trip and all other options are either already reserved or available at triple the original price, it can be quite a frustrating experience.

According to Airbnb's calculation in the previous month, there were approximately 15,000 hosts actively leasing their residences within the city.

Despite claims made by certain individuals on social media, the head of the hotel association in the city has contradicted them, stating that hotel prices have not seen a significant increase following the implementation of new Airbnb regulations.

Vijay Dandapani, the head of the Hotel Association of New York City, stated to Dailymail.com that the increase in hotel rates is not connected to any legislation.

The Hotel Association expresses complete endorsement for the legislation, which is in no way targeting Airbnb or any similar platforms. Rather, it aims to regulate the practice of transforming residences into hotels.

Dandapani claimed that the regulation was not exclusive to New York City but rather took on comparable manifestations in major metropolitan areas such as Paris and Barcelona.

According to Dandapani, the Hotel Association is not responsible for catering to every individual who desires to visit New York City.