New York Tells Tourists To Book A Hotel Or Nothin': Airbnb Hosts Chime In On New Law

Airbnb Inc’s ABNB downtown Manhattan listings, often perfect for parties and cozy family vacations near the city's famed tourism destinations, are dwindling.

Airbnb global policy director Theo Yedinsky says a new law sends a resounding message to potential tourists — "You are not welcome."

With the introduction of Local Law 18 on Sept. 5, the landscape of short-term rentals in New York City is poised for a dramatic transformation. So, how do hosts feel about it?

Understanding Local Law 18: The crux of Local Law 18 lies in its stringent measures. All short-term rental hosts must now register with the city. However, to qualify, the host should live in the place they’re renting and must be present during the guest's stay. More to that, there’s a cap on guest numbers: a maximum of just two guests are permitted.

For many, New York City’s regulations spell the end of the Airbnb business model in the city. Such strict rules make it virtually impossible for numerous hosts to continue their operations.

Read Also: Pay-To-Tweet Is Musk's Answer To Bots On X - Will Users Flock To Meta's Threads?

The Voice Of The Hosts: Benzinga spoke with various New York City-based Airbnb hosts on the subject. Opinions on the new law varied, but the undertone of frustration was palpable.

One host offered an optimistic outlook, viewing the situation as an improvement. They shared, “It just got better. New York just saved Airbnb from oversaturation and a race to the bottom due to the lack of professionalism and low balling, forcing prices down to unrealistic numbers.”

Another host, however, felt the move was influenced by larger corporate interests, saying, "it [feels] like the hotel lobby is trying to shut down Airbnb."

Though, the overarching insight from the discussions was three out of the several New York City Airbnb hosts Benzinga spoke with disclosed that they plan to respect the new rules but will not entertain the idea of staying with their renters.

It’s a sentiment that hints at a resistance among hosts, suggesting that while the law is stringent, loopholes or ways around it may still be found. Airbnb may also go dark, with listings on sites such as Craigslist or Facebook, The Wall Street Journal reported on Wednesday.

A Closer Look At Local Law 18's Impact: Beyond the challenges for hosts, the legislation threatens to curb New York City’s tourism as well. In a city where hotel rates can be exorbitant, the implications for tourist accessibility could be substantial.

Airbnb's commitment to adapt is evident, as they've begun canceling and refunding reservations in unregistered accommodations from Dec. 2 onwards. Yet, there have been discrepancies, as some entire apartments for over two people are still available to book beyond Sept. 5, contravening New York City’s registration requirements.

The introduction of Local Law 18 marks a pivotal moment for Airbnb and other short-term rental platforms in New York City. With Airbnb hosts expressing a range of emotions from resignation to resistance, the next few months will be critical in shaping the city's rental landscape.

Read Next: Fed Decision Looms - Will Steady Rates Prevail Despite Inflation Pressures?