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New York City Cracks Down on Airbnb, Short-Term Rentals

New York City has cracked down on Airbnb rentals, requiring hosts to register with the city among other new requirements. Yahoo Finance Reporter Dani Romero joins the Live show to break down the report.

Video Transcript

RACHELLE AKUFFO: Dani, what’s the latest about New York City’s Airbnb crackdown for people who were hoping to make perhaps a little bit of extra side cash with their Airbnb?

DANI ROMERO: Rachelle, New York City’s rental market is going through a little bit of a shakeup right now. As of Tuesday– just yesterday– a new law went into effect that affects landlords who have short-term rental leases on platforms like Airbnb. They are required now to register with the city.

So how this works is that hosts cannot rent out their entire apartment for less than 30 days and the landlord has to stay in that apartment if they are renting it out. Another thing is that reservations are capped out at two guests and penalty fines are up to $5,000 per violation.

There’s about 40,000 Airbnbs in New York City, specifically. City council members, this has been a big debate on whether or not rents have gone up because of this reason, that landlords are scooping up this inventory that is pretty much set to be for the rental market. But Airbnb says this is a blow to the tourism of New York City.

Now the test will really come to play on how New York City will regulate this. I’ve heard from countless Airbnb hosts that the registration to register their property for the city has been very difficult and very time-consuming.

So again, this will be the test for New York City on how they regulate all these laws and how this will all take to effect. But I will say, Rachelle, New York City isn’t the first city to do this. We’ve seen this across the country in Dallas, in Palm Springs, California. So there definitely is a lot of spotlight on how these Airbnbs or rental properties are regulated, Rachelle.

RACHELLE AKUFFO: Indeed. So for people who are hoping that could be their side hustle, please pay attention. Do not end up getting fined as Dani has broken down some of these new regulations for New York City coming into effect. Big appreciation there for our very own Dani Romero.

Source : Yahoo