Airbnb has filed a lawsuit against the City of New York in an attempt to stop a new municipal law that would require hosts to obtain an operating license in order to offer short-term rentals. The legislation, known as Local Law 18, is set to come into effect in February 2022 and has been described by Airbnb as a "de facto ban" on short-term rentals in the city.
According to the complaint filed by the company, the law places "massive burdens" on booking services, as they are responsible for ensuring that hosts are registered and providing transaction reports under threat of large civil penalties. Airbnb argues that the law is intended to drive short-term rentals out of New York City altogether.
New York City responded to the lawsuit, stating that it will review the complaint. The City's Office of Special Enforcement has implemented regulations governing short-term rentals, and the City maintains that these regulations have been clear for years.
Airbnb claims that the new law contravenes two previous agreements it has reached with the City of New York. In a 2016 agreement, Airbnb agreed to restrictions which prohibited the advertising of short-term rentals, while a 2020 agreement loosened requirements for the company to submit monthly reports about its transactions.
The battle between Airbnb and New York City over rules governing short-term rentals has been ongoing for several years. New York enforces some of the strictest regulations in the country, effectively banning rentals in most apartments for fewer than 30 days without a tenant present. In 2021 alone, the City issued almost $9 million in fines for illegal Airbnb rentals.
Airbnb has consistently maintained that the regulations in New York City are overly restrictive and have hurt the company's ability to operate in the city. The outcome of this latest lawsuit will have significant implications for the future of short-term rentals in New York, and possibly for other cities across the country.