NYC delays enforcement of new Airbnb short-term rental rules

Following a lawsuit filed this month by Airbnb, New York City will delay enforcing new restrictions limiting short-term rentals within the five boroughs. The Office of Special Enforcement (OSE) said it will not begin issuing fines to hosts until September 5, pushed back from a July start date, according to a court filing. The agency, which has already delayed the enactment of the new rules twice, currently has a staff vacancy rate of more than 50 percent, preventing it from effectively enforcing the law, as Gothamist reported.

According to the law passed in 2021, Airbnb hosts and other home-sharing platforms are required to register properties with the city before listing them. Hosts could face penalties of up to $5,000 for violating these rules, and Airbnb could face penalties of up to $1,500 for transactions on rentals that have not been verified, according to the New York Times.

Earlier this month, Airbnb sued NYC to block these new restrictions on short-term rentals. The suits, filed by Airbnb and three local hosts, target the 2021 law and label it “extreme and oppressive,” as 6sqft previously reported. The popular home-sharing platform took issue with the law’s complicated restrictions, which include not allowing hosts to rent entire spaces if they’re not there and prohibiting internal locks on doors.

The law also allows permits landlords, co-op boards, and property owners to ban short-term Airbnbs from being hosted in their buildings. 8,000 buildings have already been submitted by property owners to the prohibited building list, according to Gothamist.

The enforcement of the rules was originally supposed to begin on May 9 but was postponed to July 1 due to OSE’s staffing shortage. As of June 5, only 36 out of 781 total applications from Airbnb hosts looking to register their homes have been accepted, according to Christian Klossner, director of OSE, said to Gothamist.

Airbnb issued a statement following the city’s decision, expressing satisfaction that the delay wouldn’t affect Airbnb hosts’ and guests’ summer plans but encouraging the city to work with them on a more “sensible” solution:

“Following the filing of our lawsuit last week, the City has said that it will delay until September the enforcement of its rules that would result in a de facto ban of short-term rentals in New York City,” Karen Dunn, the attorney for Airbnb, said in a statement.

“While we are happy on behalf of guests and hosts whose summer plans and rentals will no longer be ruined by these rules, we hope the City will use the extra time to collaborate with us on a sensible alternative solution that will benefit Hosts, tourism, and the local economy.”

RELATED:

• Airbnb sues New York City over rules on short-term rentals
• NYC sues illegal Airbnb operator who earned $2M and deceived thousands of guests since 2018
• De Blasio signs bill forcing Airbnb to disclose names and addresses of hosts