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Governor Cuomo Bans Airbnb From Listing Short-Term Rentals In New York

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An anonymous reader quotes a report from New York Post: Gov. Cuomo on Friday bowed to pressure from the hotel industry and signed into law one of the nation's toughest restrictions on Airbnb -- including hefty fines of up to $7,500 for people who rent out space in their apartments. Backers of the punitive measure -- which applies to rentals of less than 30 days when the owner or tenant is not preset -- say many property owners use Airbnb and similar sites to offer residential apartments as short-term rentals to visitors, hurting the hotel business while taking residential units off the Big Apple's high-priced housing market. Enforcement, however, will be a huge challenge, as thousands of short-term apartment rentals are listed in the city despite a 2010 law that prohibits rentals of less than 30 days when the owner or tenant is not present. Violators could be turned in by neighbors or landlords opposed to the practice, or the state could monitor the site to look for potential violations. But beyond that how the law would be enforced was not immediately clear. The new law won't apply to rentals in single-family homes, row houses or apartment spare rooms if the resident is present. But will apply to co-ops and condos. Airbnb mounted a last-ditch effort to kill the measure, proposing alternative regulations that the company argued would address concerns about short-term rentals without big fines. Tenants who violate current state law and list their apartments for rentals of less than 30 days would face fines of $1,000 for the first offense, $5,000 for the second and $7,500 for a third. An investigation of Airbnb rentals from 2010 to 2014 by the state attorney general's office found that 72 percent of the units in New York City were illegal, with commercial operators constituting 6 percent of the hosts and supplying 36 percent of the rentals. As of August, Airbnb had 45,000 city listings and another 13,000 across the state.

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