Thousands of short-term rentals are expected to disappear from rental platforms as New York City begins enforcing tight restrictions.

Local Law 18, which came into force Tuesday, is so strict it doesn’t just limit how Airbnb operates in the city—it almost bans it entirely for many guests and hosts. From now on, all short-term rental hosts in New York must register with the city, and only those who live in the place they’re renting—and are present when someone is staying—can qualify. And people can only have two guests.

Gone are the days of sleek downtown apartments outfitted for bachelorette parties, cozy two- and three-bedroom apartments near museums for families, and even the option for people to rent out their apartment on weekends when they’re away. While Airbnb, Vrbo, and others can continue to operate in New York, the new rules are so tight that Airbnb sees it as a “de facto ban” on its business.

....

New York is just one of many cities around the world trying to calm the short-term rental gold-rush.

And everyone is taking a different approach. Dallas has limited short-term rentals to specific neighborhoods to avoid disruptive and dangerous parties. Elsewhere, the Canadian province of Quebec and Memphis, Tennessee, among others, now require licenses for short-term rentals. In San Francisco, the amount of time someone can list their entire residence for rent on Airbnb is limited to 90 days each yearAmsterdam puts that limit at 30 nights per year, Paris at 120 days. Berlin previously banned nearly all Airbnbs but walked the decision back in 2018.1

....

Airbnb says it is canceling and refunding reservations in unregistered accommodations from December 2 onwards, but those up until December 1 can remain in effect to lessen the impact on hosts and guests. Guests won’t be penalized if they book and stay in an unregistered rental, but hosts and the platforms they advertise on could be as of September 5.2

There are 3,250 short-term rental hosts who had submitted applications for registration by August 28, according to Christian Klossner, executive director of Office of Special Enforcement in New York City. More than 800 applications had been reviewed, and the office had granted 257 registrations, returned 479 to seek additional information or corrections, and denied 72. As of Tuesday, the office will focus on working with booking platforms to make sure they are using the verification system for registrations and that they are not processing unverified transactions, Klossner says.

  • 1. Airbnb’s attempts to fight back against the new law have, to date, been unsuccessful. The company sued New York City in June, but a judge dismissed the case in August, ruling that the restrictions were “entirely rational.” Airbnb did not comment on whether it would appeal the decision. Hosts are also fighting for the right to list their apartments as short-term stays by meeting with city officials to try to change the law.
  • 2. Airbnb also says unregistered stays were blocked from future bookings past September 5 as of August 14, but a search showed dozens of entire apartments for more than two people still available to book beyond September 5. These listings should not pass New York’s registration requirements for short-term rentals. Airbnb did not comment on why these are still on the platform. Vrbo declined to comment for this story. Booking.com did not return a request for comment.