A new regulation was signed into law last week in New York that levies a fine of up to $7,500 on advertising short-term rentals of less than 30 days, reports MarketWatch staffer Caitlin Huston.
Under the regulation, users can still list a room in their home but cannot advertise entire apartments. The shared-home model is similar to Airbnb’s origins as a community-based platform, but the problem is that the company may have moved past that narrative, according to Max Wolff, market strategist at 55 Capital Partners, an exchange-traded fund-focused investment manager.
Airbnb had proposed a set of regulations ahead of the ruling that included collecting and remitting taxes from its hosts, and said it would only allow hosts to have one listing across all five boroughs. The company said it would still move forward with those policies despite the law.
After the bill was passed, Airbnb filed a suit against New York City and Mayor Bill de Blasio, as well as Attorney General Eric Schneiderman.
“A majority of New Yorkers have embraced home sharing, and we will continue to fight for a smart policy solution that works for [the] people, not the powerful,” Josh Meltzer, head of New York public policy for Airbnb, said in a statement.