In the last weeks, Airbnb filed a lawsuit against the city of NY due to a new law that the company considers a “de facto ban” of temporary rentals, endangering the annual income for $85 million that receives the platform shared hosting.
New York City Local Law 18, which will enter into force in Julyrules that city residents who wish to rent a room or apartment register first in the Office of Special Execution (OSE) of the city council and guarantee compliance with what Airbnb calls “the complex labyrinth of regulations in different legal codes governing short-term rentals”.
In that sense, those who do not comply with the law shall be subject to a civil penalty of up to $5,000 For each infringement.
Airbnb: on the brink of closure in New York
Dan Wasioleka senior equity analyst at Morningstar Research Services covering accommodation and online travel, notes that Airbnb seems to be on the brink of closure in New Yorkwhere there are currently 20,000 apartments and houses registered on its platform.
Until a month ago the city had only approved nine short-term rental registrationswhich represents less than 0.04% of active ads They have been booked at least once since the beginning of the year.
“Nine is a ridiculous number“, says Wasiolek. “The fact that only a fraction of 1% of Airbnb listings have obtained official verification indicates that the law is extremely restrictive“. Also, making matters worse for Airbnb hosts, “I understand that the city is not explaining to people why your application is rejected.
This is not the first time that Airbnb has faced these kinds of legal battles. Over the past 16 years, major markets including Tokyo, Miami and Paris have regulated short-term rentals, leading to a complex spiral of laws.
“Airbnb has been dealing with these same issues since the company was founded, more or less, says Wasiolek argues. “And I have the feeling that, in general, concern about regulation is not as high today as it was a few years before the pandemic outbreak“.
The proliferation of temporary rentals: a problem that affects Buenos Aires
In the main Argentine cities it is very frequent that those who communicate with real estate agencies receive responses such as already booked or your request will be at the bottom of a long list of interested
It is almost impossible to find an apartment, a house or a PH in Buenos Aires, La Plata or Córdoba. Not to mention in Mendoza or Salta, and that also, can be paid in pesoseither for a family or for an individual.
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europe press
In the Autonomous City of Buenos Aires (CABA), there are more than 15,000 properties for temporary rental. Owners prefer to use this format, whether publishing on platforms like Booking or Airbnbor through real estate agents and local portals, since they prefer to receive payment in dollars.
There are several reasons why thousands of homeowners They do not want to allocate their properties to the traditional formatwith three-year contracts and year-on-year adjustments.
Experts maintain that the temporary rental is a phenomenon that is advancing by leaps and bounds in major cities around the world. However, the counterpart to the offer of more than 15,000 apartments for temporary rental in CABA It is barely 1,000 for traditional rent.
From the sector they attribute the shortage of properties to rent to the controversy Rental Law sanctioned in July 2020. Which led to a drop in supply, since the owners They do not want to allocate their properties to traditional rental due to the low profitability they leave and the increase in taxes they must face.
Source: Ambito
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