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Airbnb Inc. v. Schneiderman

By Jeshica Patel posted 11-28-2016 09:59 PM

  

            Since it’s the holiday season, many people are traveling for vacation, and staying at places other than hotels. While I have not had the opportunity of staying at an Airbnb, I have heard from many people; friend and family alike, that it was a great experience. Those I have spoken to about Airbnb have always given the places and their host’s positive reviews. 

            For those that are not aware, Airbnb is a marketplace for people to “list, discover, and book unique accommodations around the world.”[1] The company lists housing for a night, week, or even a month, in a variety of accommodations, in 34,000 cities and 191 countries.[2] Airbnb provides travelers a unique and affordable option for staying somewhere, while renters are can money by opening their home to others.

            While travelers may love the experience of renting an Airbnb, there has been some recent litigation that may change things in New York City. On October 21, 2016, Governor Andrew Cuomo signed a bill into law that prohibits advertising of rentals for less than 30 days.[3] The law would result in fines of up to $7,500 for violators.[4] Immediately after the bill was signed, Airbnb filed suit against the city and state alleging “the restrictions were unconstitutional and infringed its free-speech rights.”[5]

            The enforcement of this law has come to a standstill; however, recently “Airbnb Inc. dropped its bid to block New York State from enforcing a new law restricting short-term sublets, as the company continues talks with New York City over the issue.”[6] Currently, Airbnb is attempting to reach a settlement with the city and plans to update U.S. District Judge Katherine Forrest by Dec. 2.[7]

            While the case is still in settlement discussion, those of you that plan on trying out Airbnb for less than 30 days in NYC start booking now before a decision comes out. The case is Airbnb Inc. v. Schneiderman, 16-cv-08239, U.S. District Court, Southern District of New York (Manhattan).

[1] https://www.airbnb.com/about/about-us

[2] Id.

[3] https://www.bloomberg.com/news/articles/2016-11-22/airbnb-drops-bid-to-block-new-york-state-from-using-sublet-law

[4] Id.

[5] https://bol.bna.com/airbnb-drops-bid-to-block-new-york-state-from-using-sublet-law/

[6] Id.

[7] Id.

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12-14-2016 02:59 PM

If the laws and administrative rules in New York and other cities were not so arbitrary and did not add so many externalities (needless costs, the legalized equivalent of bribes in third world countries), the issue would hardly exist.  If hotels choose to gouge the market in high times, the laws should not be protecting them.  A city that keeps tens or hundreds of thousands of units at artificially low rents even if the current tenants (or others) can afford to pay more hardly has clean hands to tell people not to rent out their homes or parts thereof on whatever terms they can.