FRANCHISE HERALD
Wednesday September 30, 2020

updated - September 30, 2020 Wednesday EDT

72% of Airbnb Rentals Reportedly Illegal

Oct 20, 2014 03:59 AM EDT | By Jane Galvez
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Airbnb, hostels, online listing, New York City
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Airbnb
Airbnb logo(Photo : Airbnb)

New York State Attorney General reports that 72% of rentals under Airbnb are illegal.

Attorney General Eric Scheneider released Thursday a detailed report of the study on Airbnb rentals conducted from the beginning of 2010 till June 2014. During the period of study, most of the rentals violated local and State laws, including Multiple Dwelling Law and the New York City Administrative Code.

New York state law prohibits commercial enterprises to let multiple unrelated guests share tight quarters. The study shows that an estimate 200 units were booked as short-term rentals for more than 365 days in a year, meaning multiple transients rented the space at the same night. This practice is illegal based on the rules.

Fire safety, tax, zoning, and other applicable laws were looked into in the study. One of the major concerns is that New York prohibits renting out residential apartment building to rent out space for less than 30 days. This law protects the availability of affordable housing.

During the period of the study, the state received numerous complaints regard the short-term rental business promoted by Airbnb. Most of the complaints detail issues with noise, safety and failure to follow building rules.

The introduction said that the rapid rise of apartment units being converted into rental spaces has sparked global debate. "Where supporters of Airbnb and other rental sites see a catalyst for entrepreneurship, critics see a threat to the safety, affordability, and residential character of local communities," the government report said.

The study also shows that Airbnb NYC hosts avoided paying a total of $33.5 million in taxes. Airbnb has already agreed to impose taxes on their hosts, as it has already collecting taxes from their San Francisco hosts. This proves to be one of the easiest problem to resolve in the problems between the online listing and the government.

Airbnb is a California-based online hostel listing started in 2008.

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