Mayor Eric Adams' Office of Special Enforcement in New York, which regulates the short-term rental business, reports that NYC has over 29,000 short-term rentals and over a third of which are unlawfully posted.

New York has among the strictest rules in the nation, and as such, it practically bans the short-term renting of most units (less than 30 days) without a renter being present.

In 2021, illicit Airbnb empires were fined $8.9 million by the city, as Bloomberg reported. Yet, statistics reveal that only a minority of hosts really pay promptly. Filings show that many have allowed fines to accrue.

Newer Case of Illicit Host

A million-dollar residence in Flushing, New York, is a two-story brick house. Based on public records, the property was illegally rented as an Airbnb, and individuals lived in the attic and basement.

City papers indicate years of infractions, neighbor complaints, and an order to evacuate a section of the apartment that was unlawfully leased. As per municipal records, the homeowner incurred $984,000 in unpaid fines in 2021. 

In 2021, the latest year of data available, it received 11% of all penalties, more than any other unlawful Airbnb property.

Related Article: Airbnb Bans People' Close' to Existing Banned Users: But Why?

NYC vs. Airbnb

For a long time now, New York has been at odds with Airbnb over the city's many unlawful listings, and the state has spent much energy and funds in pursuit of those responsible. 

In May, new regulations will go into effect that aims to keep illegal, unregistered Airbnb residences off the market in the first place. 

Those who want to host guests through Airbnb or a similar service must first register with the city and get a business license. Booking fees for unregistered properties cannot be collected, reducing the burden on the city to investigate and remove unlawful listings. No registration will be granted for units that have outstanding eviction or fire code violations.

Airbnb and the city of New York, one of its most important domestic markets, have been in court for years over the company's business practices, culminating in the new regulations. The city claims that Airbnb is to blame for driving up the already steep cost of living in certain areas, advertising unsafe lodgings, and eliminating vital rental units from the market.

Measures set to take effect this spring will strengthen current laws and establish new ones. 

Guests will need to see the documentation that the host is a permanent resident, a certificate proving that the unit is legally allowed to house guests and a list of the total number of permanent residents who are not linked to the host. 

The maximum fine for a host who repeatedly violates the rules is $5,000.

Read Also: FTX Creditors List Revealed: Airbnb, Netflix, and MORE-Did it Really Reach 1 Million?