The Regulatory Dawn of Short-Term Rentals in New York

The Regulatory Dawn of Short-Term Rentals in New York: A Deep Analysis 🌆

In a world where the collaborative economy has taken a predominant role, government regulations seek to balance the scale between innovation and the preservation of order and security. New York, the city that never sleeps, has awakened to a new regulatory reality affecting short-term rental platforms such as Airbnb and VRBO. In this article, we break down the details of the new law and explore its impact on the real estate and tourism sector of the Big Apple.

Content of the Law and Applied Normativity 📜

The new law, which came into effect on September 5, 2023, establishes a series of regulations aimed at controlling and overseeing short-term rentals in the city. The key points are:

• Mandatory Registration: All hosts must register with the Mayor’s Office of Special Enforcement (OSE).
• Rental Restrictions: The rental of entire housing units for less than 30 days is prohibited.
• Host Presence: Hosts must be present during the guest’s stay.
• Prohibition of Unregistered Transactions: Platforms cannot process transactions for unregistered rentals.

Post-Implementation Financial Indicators 💹

Since the implementation of the law, there has been a significant decrease in the number of listings available on platforms like Airbnb. The financial indicators show:

• Listing Reduction: A 70% decrease in short-term listings, equivalent to about 15,000 properties.
• Increase in Long-Term Rentals: A notable increase in long-term rentals, which are not subject to these regulations.
• Impact on Tourism: Although it is still too early to determine the total impact on the tourism sector, there is significant concern about the possible reduction of accommodation options for tourists.

Reactions and Responses from the Platforms 🗣

Rental platforms have responded diversely to these regulations. While Airbnb has strongly criticized the law, arguing that it limits accommodation options and negatively affects hosts, others see these regulations as an opportunity to create a safer and more regulated environment for short-term rentals.

In several countries around the world, regulations are being implemented to control and oversee the operations of short-term rental platforms like Airbnb. Here I present some examples:

1. Spain 🇪🇸

In cities like Barcelona and Madrid, strict regulations have been established that include the need to obtain licenses to operate and the limitation of the number of days a property can be rented. In Barcelona, for example, a regulation has been implemented to control the number of tourist rentals to preserve residential housing.

2. France 🇫🇷

In Paris, a limit of 120 days per year has been established for renting main residences through platforms like Airbnb. Hosts must register their home and obtain a registration number that must appear in the advertisement.

3. Canada 🇨🇦

In Toronto, regulations have been implemented that allow short-term rentals only in the host’s main residence, with a limit of 180 days per year.

4. Japan 🇯🇵

Japan has introduced a national law that requires hosts to register with the local government and sets a maximum limit of 180 days per year for renting properties through short-term rental platforms.

5. Australia 🇦🇺

In Sydney, a regulation has been established that allows short-term rentals with a limit of 180 days per year for properties in tourist areas and 365 days in rural areas.

It is important to note that these regulations are subject to change and can vary considerably depending on the specific region within each country.

Conclusions and Future Perspectives 🌈

Although the law has generated controversy and faced criticism, it represents a significant effort by the city administration to address the problems associated with short-term rentals. As the law continues to be implemented, it will be crucial to monitor its impact and adjust the regulations as necessary to ensure a balance between innovation and safety.

The road to effective regulation is long and full of challenges. However, with collaboration and continuous dialogue between authorities and rental platforms, there is hope of finding common ground that benefits all involved.

This could also occur in countries like Colombia where there have been recent high increases in rentals to foreigners and the wave of growth in homes and rooms through Airbnb, which has in turn generated high increases in rentals to nationals, not to mention the gentrification that is also experienced in the main cities of Colombia.