New York City recently mandated that Airbnb hosts require a license to offer stays under 30 days. The aim is to ensure everyone follows the city’s housing laws.
By October 9, the city had received 4,794 applications from hosts. It reviewed 1,697 of these applications.
According to Christian Klossner, who oversees short-term rentals in the city, 57% of the applications were incomplete.
These hosts got their applications returned for more information or corrections. In fact, only 481 hosts, or 28%, got their licenses.
These are the hosts who complied with city requirements about tenant presence during rentals.
Klossner highlighted a recurring issue. Many people were submitting applications for whole homes or illegal basement apartments.
Also, many clearly stated that the host would not be present during the rental period. Klossner stressed that educating hosts has been a significant part of this process.
This way, more hosts can meet the city’s rules.
Previously, New York was a big market for Airbnb. However, the new regulations have drastically reduced listings.
According to AirDNA, a market research firm, the listings available for less than 30 days plummeted by 89% in September compared to August.
For years, Airbnb has had a challenging relationship with New York officials. Critics claim Airbnb’s presence raises rents and limits housing availability.
Hosts Need Extra Income To Pay Mortgage
On the flip side, many hosts say they need the extra income from Airbnb to pay their mortgages.
When the new rules came into effect, Airbnb revealed that New York only contributes about 1% to its annual revenue.
As a response, many hosts have shifted their strategy. They now offer rentals for 30 days or more. No license is required for these longer rentals.
AirDNA reports that such listings have surged. They now make up 94% of all New York Airbnb listings, up from 54% in early August.
The city claims these new rules have led to a significant reduction in illegal listings.
Klossner says that they continue to monitor and will take action against hosts who break the law.
So, while not everyone agrees with the new regulations, they have undoubtedly reshaped the short-term rental landscape in New York City.