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Airbnb Settles New York State Lawsuit, Proceeds with NYC

by Courtney Lynch on November 25, 2016
Fast Money

Airbnb has reportedly dropped its lawsuit against New York State but will proceed with its filings against New York City. Airbnb was previously said to be negotiating with the city to settle the lawsuit filed against them. The company has decided not to drop its suit against New York City because of Governor Andrew Cuomo’s new legislation.

Gov. Cuomo’s legislation intends to fine hosts up to $7,500 for advertising short-term rentals. Since 2010, it has been illegal to rent space for less than 30 days in multi-unit buildings in New York City. Airbnb believes that their site is being targeted with this new legislation. New York City is one of Airbnb’s biggest markets and the new law could greatly affect business.

While the law is said to target hosts illegally rent their space in multi-unit buildings, Airbnb feels it could affect their business. Violators would be using Airbnb’s site to break such a law. There are concerns that Airbnb could be responsible for some of these costs. As a result, Airbnb believes the law is vague with its wording. In a statement, an Airbnb spokesperson said:

“We have long sought to work with leaders in New York on clear, fair rules for home sharing and we’re continuing to do all we can to protect the thousands of middle class families who depend on home sharing to earn a little extra money.”

The company also stated that the bill will hurt many families who depend on the home-sharing business for extra income. Mayor Bill de Blasio’s spokesman said that their focus has and continues to be on operators of illegal hotels, not individuals. New York legislators argue that the fines are necessary for protecting housing prices.

New York City officials are scheduled for a hearing regarding the law’s regulations and how they will affect Airbnb on Dec. 17.


Featured Image via Twitter/cbcnewsbc

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Courtney Lynch
Full-time writer and music buff with a passion for travel, books, animals and anything that makes you think twice about what you're doing with your life.
  • Julia Hess

    Hmm very intriguing. I’ve been reading a lot lately about Airbnb and the legality of it in various cities including NYC and Boston. I’ve actually stayed in an Airbnb in NYC, curious to know if it was legal… I think Airbnb should be allowed to proceed in NYC as well as everywhere else considering the spaces are privately owned.

  • Corrada Spatola

    Even though my few Airbnb expierences have not been great, I do believe that the bill will hurt many families who depend on the home-sharing business for extra income.

  • Madi Kantor

    I do wonder about the safety and security measures Airbnb takes for both their renting customers and people who rent out their own houses

  • Kaliyah Jetton

    From the sound of it, the law has been in place since 2010 so in that case, Airbnb should have already known what it as getting into. But if it is a new law or their governor is just now deciding to enforce it, then they probably are being targeted with it, especially because there is no guarantee the city/state will receive any monies from airbnb’s there and they probably want a piece of the profits.

  • Prasun Srivastava


  • Prasun Srivastava