NYC Airbnb Hosts Explore Alternatives As New Bookings Are Blocked

01.09.2023 - 20:55 / skift.com / Justin Dawes

Hosts of at least 23,000 short-term rentals in New York City are being forced to reevaluate or end their businesses as Airbnb blocks them from making new bookings. 

The city will start enforcing a law on September 5 that requires short-term rental owners to register as hosts, and Airbnb is blocking them from making new bookings after that date unless they have approval.

Local Law 18 passed in January 2022 after roughly 10 years in the making, according to Michael McKee, head of Tenants Political Action Committee, which is a member of the Coalition Against Illegal Hotels, a group that participated in writing the legislation. 

Registration is meant to force hosts of short-term rentals to comply with long-standing laws to publish listings on Airbnb and other platforms. Among several requirements, registered hosts can only book stays for fewer than 30 days and must be present during the guest’s stay. Violators face thousands of dollars in fines. 

“We believe that over time, over the next year or two — probably two years — essentially, this will eliminate illegal hotel activity in New York City,” McKee said.

After its appeal was dismissed, Airbnb finally informed NYC hosts that they would have to comply, or their listings could be deactivated. Now, many hosts are scrambling to save short-term rental businesses that, in some cases, generate tens of thousands of dollars or more in monthly revenue.

Skift reached out to more than 30 hosts through the Airbnb and Vrbo platforms, as well as several short-term rental groups on social media. The majority declined to comment.

One host, who agreed to speak but asked to remain anonymous, said he is now unable to book multiple units through Airbnb, but plans to continue renting them out in other ways.

“I’m creating my own system to bypass Airbnb,” he said. “And it’s secured and backed up because I have so many clients. I don’t even need Airbnb. I could run my business off of just my referrals and off of my recurring clients.”

He said the short-term rental business is his main source of income and funds some events and activities related to a legal business he owns in the city.

Tom DeRose, who used to own eight Airbnb short-term rentals in New York City, understands why most hosts do not want their names published.

“If I was doing this, I absolutely wouldn’t be doing an interview,” DeRose said. “What they’re doing is illegal. And what I was doing at the time was also technically illegal. I’m comfortable speaking about it because it’s no longer happening.”

DeRose, who now owns a long-term rental business primarily for international students, said he had discontinued all of his short-term rentals by the start of this year because of Local Law 18. 

When he was a