The Real Deal New York

Airbnb law hitting legitimate bed and breakfasts

Some hostels and B&Bs closing due to legislation targeting short-term rentals
December 26, 2014 09:35AM

Bed and breakfasts around the city are feeling the pressure from Airbnb.

Ever since a 2011 law was enacted that sought to eliminate short-term rentals and illegal hotels in residential buildings, legal bed and breakfast owners have been impacted, the New York Observer reported. As a result, legitimate bed and breakfasts have become collateral damage in the fight against Airbnb, with some being forced to close.

Under that law, bed and breakfasts and hostels aren’t protected, according to the website. Small bed and breakfasts are subject to the same laws and rules as large hotels, with a task force issuing violations for, among other things, not having separate staircases.

Last week, City Councilmembers Daniel Garodnick and Mark Weprin wrote a letter to try to find a solution.

“We need to explore avenues to deal with the unintended consequence of the law. Perfectly legitimate B&Bs out there that are paying hotel and sales tax are very different from what the illegal hotel laws was trying to address,” Garodnick said, according to the website. [NYO] — Claire Moses

  • John

    NY City Council governing philosophy: if it ain’t broke, fix it till it is

  • RTS

    Here is what happen when you trying to use the power of law in order to harass a perfectly legitimate internet tech solution like Airbnb. Before airbnb, there was completely no harassment against the short-term residency industry; we use to have websites like VRBO, Homeaway, Etc. We also used to have hostels and legal bed & breakfast buildings. The hotel tax law was designed and created for Hotels. The description of hotel as we all know doesn’t even apply to the short-term or vacation rental, let’s be honest about it… We all know what an hotel is, and only hotel owners have to deal with hotel taxes. This city has became so dependent of Major corporations and corruption that nothing is being really done within ethic no more. I’m sure there used to be time when we had governments that were fair and ethical dealing with all. Looking forward to those days again.

  • Michael Andrew Graf Rasch

    There is nothing fair about short term rentals. Hotels pay a tax, B&B’s pay a tax, so should all the others. also, B&B’s and hotels pay a much higher insurance than a home owner.

    I just dealt with a owner this morning about this issue, the rules at the condo state ” 12 months minimum “, and he’s doing AirBnB weekly rentals, I asked him to stop since my personal safety is at stake ( transient people, vacationers, we all know who lives here, and our screening is very tight … ). He gave me the finger. I went down stairs, filed a complaint with the board, they just shut off the fob’s to have the “guest stop by”. Wrote to AirBnB and the listing has vanished.

    I got no problem with Airbnb, I have a problem with people whom break the rules of the condo or Co-op when it comes to personal safety and screening.