Airbnb is now banned in New York City
Airbnb is now banned in New York City
Could this also be enforced in Asian cities?
It’s happened: after months of talks, Airbnb is now illegal in the big apple.
On Friday Governor Andrew Cuomo signed legislation which means anyone advertising a short-term rental apartment on a home sharing site can face a fine of up to USD7,500.
The average New York host earns roughly USD5,000 a year from renting out their room while on holiday or away from home.
The bill, which is effective immediately, aims to reduce the amount of people who turn their homes into hotels. Doing so takes potential rental housing off the market and means cities miss out on tax revenue.
“This is an issue that was given careful, deliberate consideration, but ultimately these activities are already expressly prohibited by law,” Cuomo spokeman Rich Azzopardi said.
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However, data released from Airbnb in July showed that 96 percent of its hosts in New York City had only one listing and only shared the space on a sporadic basis.
Airbnb has filed a lawsuit challenging this change in law. They argue that by holding them liable for third-party rental listings on its platform, the New York law violates a federal law.
“A majority of New Yorkers have embraced home sharing, and we will continue to fight for a smart policy solution that works for the the people, not the powerful,” Airbnb said.
Airbnb and similar sites have become increasingly popular in Asia, and despite legal restrictions of their own, these have rarely been enforced, meaning the platforms have thrived.
In Thailand, Airbnb contravenes the Hotel Act and while these type of short term rentals are commonplace, a crackdown has been seen in the Thai resort town of Phuket.
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In July of this year, owners of all 234 registered condo projects in Phuket were sent a written warning that they will receive a fine of up to THB20,000, (USD557) or a year in jail, should their property be found to be violating the law.
Bangkok based lawyer Desmond Hughes, of Asia based law firm Hughes Krupica, previously told Property Report:
“Airbnb and companies like them are not responsible for legal compliance of the landlords and tenants. Therefore, no reliance or burden can be shifted away to them in general terms.” He continued: “When it comes to individuals using their properties for standalone occasional rental, they must have regard to the laws of Thailand and cannot rely upon the use of an internet portal to somehow ‘escape’ from regulation.”
Similarly, in Singapore, while Airbnb and the similar PandaBed thrive in terms of popularity, it’s technically illegal to rent out rooms or entire apartment for less than six months in the city state. Many homeowners however, continue to take the risk to earn extra income.
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Source: Property Report