Airbnb, HomeAway sue New York City over new short-term rental law

Short-term rental sites Airbnb and HomeAway have sued New York City over the city’s latest regulation of short-term rentals in two separate lawsuits, claiming the requirement to release host data to the city violates privacy.

Airbnb called the law “an extraordinary act of government overreach” that violates hosts’ constitutional rights.

The law, which the City Council passed unanimously last month, requires online rental platforms such as Airbnb, HomeAway, and VRBO to provide data on hosts to the city’s Office of Special Enforcement every month. This includes the name, address, phone number, email, and profile URL of active hosts, as well as the total number of days the property was rented, fees that were paid, and whether hosts are renting out a whole home or just part of one. Short-term rental platforms that fail to disclose this information can by fined $1,500 per listing.

According to Airbnb’s suit, “The ordinance is an unlawful end-run around established restraints on governmental action and violates core constitutional rights.”

Christian Klossner, Executive Director of the Mayor’s Office of Special Enforcement, said the city would defend the law, which is scheduled to go into effect in February of next year.

“This law provides the city with the critical data it needs to preserve our housing stock, keep visitors safe, and ensure residents feel secure in their homes and neighborhoods.” Klossner said.

Airbnb has agreed to share some user data with governments in San Francisco and Chicago as part of regulation deals in those cities.

According to the New York State multiple dwelling law, short-term rentals are only allowed in most apartment buildings if the permanent tenant lives in the apartment while guests are staying there.

The data-disclosure requirements of the new ordinance would make it easier for the city to crack down on illegal short-term rentals as well as determine whether short-term rental hosts are complying with lodging tax requirements.

Short-term rentals in New York City are subject to a New York City Hotel Room Occupancy Tax, which is collected by the city, while New York State collects state sales tax, New York City sales tax, and a Hotel Unit Fee of $1.50 per day on short-term rentals.

While Airbnb collects lodging taxes from guests on behalf of its short-term rental hosts in several counties in New York State, it does not collect for hosts in New York City, and neither do other online rental platforms.

New York City hosts are responsible for collecting lodging taxes from guests on their own and for remitting those taxes with the proper agency. MyLodgeTax can help New York City short-term rental hosts fulfill their lodging tax obligations.

Airbnb also recently announced that it was financing a lawsuit against the city by host Stanley Karol. Karol rents out his home on Airbnb and said city investigators targeted him after he spoke out at a City Council meeting about his opposition to Airbnb legislation. The city imposed fines on Karol that could total more than $30,000.