Post by High Priestess on Dec 4, 2015 15:13:41 GMT
See this article:
www.marketwatch.com/story/new-york-could-learn-from-san-francisco-on-how-to-treat-airbnb-hosts-2015-12-02
State’s rules for Airbnb hurt people struggling with high rents
Here’s another way to break the law in New York.
There have always been plenty of ways to run afoul of the law in New York, including serious crime. But in 2015, it’s as likely to involve smoking in a public park or renting your studio apartment out on Airbnb.
The global sharing economy doesn’t extend to real estate here: New York State prohibits rentals in most apartment buildings for stays less than 30 days unless the owner or tenant is staying there too. “The purpose was to get rid of illegal hotels,” says Matt Curtis, government relations director at rental site HomeAway.com, where members only rent their entire home. New Yorkers who were daring (or, indeed, desperate) enough to turn their homes into an ATM during Pope Francis’s visit in September or even during the New York City Marathon in November were probably breaking the law and risking eviction by their landlords. There are other options for seeking renters other than Airbnb and HomeAway.com, such as Craigslist and even Facebook.
The temptation returns for New Yorkers fleeing the city over Christmas. Five million tourists are expected to arrive here—and they need somewhere to stay. And many New Yorkers still appear to skirt the law, regardless. Of nearly 36,000 Airbnb listings that were active in mid-November, around 55%—or nearly 18,000—were for rentals of entire homes or apartments, most of which are likely illegal under New York State Law, according to a report in the New York Post. (Airbnb did not reply to a request for comment on that report.)
There is a good reason New Yorkers don’t want to leave their home empty when they’re away: what the place is costing them while they are not there. On Tuesday, Airbnb said of the company’s New York hosts earn low, moderate or middle incomes, while 36% had unsteady incomes. “Many are freelancers, part-time workers, or students,” the company said.
Many New Yorkers still appear to skirt the law, regardless.
Real-estate website Trulia.com estimates the median purchase price of an apartment in Manhattan now exceeds $1 million. And most renters must deal with real-estate brokers who frequently charge a fee of 15% of the annual rent just to turn a key. The median monthly rent for a one-bedroom apartment is expected to rise by more than 5% this year to $3,160, according to apartment rental site Zumper. “Whenever I think of what I pay for my rent a piece of my soul dies,” says Jennifer Brown, a marketing executive who moved to the city a year ago. The monthly median rent here is second only to $3,530 for a one-bedroom in San Francisco.
San Francisco, another city with a high cost of living, has mostly made short-term rentals work. Unlike New York, it welcomes rentals of less than 30 days (and limits them to 90 days a year). But prospective renters there need to fulfill certain legal requirements. In San Francisco, Airbnb hosts must register their property, have appropriate liability insurance and be a “permanent resident” of the city, which means they must spend at least 275 days a year in San Francisco. On Nov. 3, San Francisco residents voted against “Proposition F,” a measure that would have restricted short-term rentals to 75 nights a year. “This election was a victory for the middle class,” Chris Lehane, Airbnb’s head of global policy, said in a statement.
The far tougher restrictions in New York haven’t appeared to work. Around 72% of short-term rentals in New York between January 2010 and June 2014 violated state law, according to a report released last year by the New York State Office of the Attorney General titled “Airbnb in the City”. And commercial users (who own several apartments) accounted for 37% of host revenue, even though they made up only 6% of hosts. There was a socio-demographic gap too. Revenue generated in Manhattan and Brooklyn accounted for virtually all revenue (97%) from private short-term rentals citywide. The three outer boroughs of Queens, Staten Island and the Bronx accounted for less than 3% of all revenue.
It’s tough to live in New York—with or without bed bugs. The Economic Policy Institute think-tank says it’s the fourth most expensive place to raise a family in the U.S. A family of four must earn nearly $100,000 just to get by. And even though most New Yorkers spend more than half their income on rent, according to listings site StreetEasy.com, millions of tenants must still leave their apartments empty when they go on vacation—or risk hefty fines. Few middle-class people can afford to buy or even rent in Manhattan without having roommates, so they must either pay exorbitant rents here or move to the outer boroughs, which are not as popular for people who rent rooms or apartments on Airbnb.
Under current regulations, the law-abiding little guy loses out.
www.marketwatch.com/story/new-york-could-learn-from-san-francisco-on-how-to-treat-airbnb-hosts-2015-12-02
State’s rules for Airbnb hurt people struggling with high rents
Here’s another way to break the law in New York.
There have always been plenty of ways to run afoul of the law in New York, including serious crime. But in 2015, it’s as likely to involve smoking in a public park or renting your studio apartment out on Airbnb.
The global sharing economy doesn’t extend to real estate here: New York State prohibits rentals in most apartment buildings for stays less than 30 days unless the owner or tenant is staying there too. “The purpose was to get rid of illegal hotels,” says Matt Curtis, government relations director at rental site HomeAway.com, where members only rent their entire home. New Yorkers who were daring (or, indeed, desperate) enough to turn their homes into an ATM during Pope Francis’s visit in September or even during the New York City Marathon in November were probably breaking the law and risking eviction by their landlords. There are other options for seeking renters other than Airbnb and HomeAway.com, such as Craigslist and even Facebook.
The temptation returns for New Yorkers fleeing the city over Christmas. Five million tourists are expected to arrive here—and they need somewhere to stay. And many New Yorkers still appear to skirt the law, regardless. Of nearly 36,000 Airbnb listings that were active in mid-November, around 55%—or nearly 18,000—were for rentals of entire homes or apartments, most of which are likely illegal under New York State Law, according to a report in the New York Post. (Airbnb did not reply to a request for comment on that report.)
There is a good reason New Yorkers don’t want to leave their home empty when they’re away: what the place is costing them while they are not there. On Tuesday, Airbnb said of the company’s New York hosts earn low, moderate or middle incomes, while 36% had unsteady incomes. “Many are freelancers, part-time workers, or students,” the company said.
Many New Yorkers still appear to skirt the law, regardless.
Real-estate website Trulia.com estimates the median purchase price of an apartment in Manhattan now exceeds $1 million. And most renters must deal with real-estate brokers who frequently charge a fee of 15% of the annual rent just to turn a key. The median monthly rent for a one-bedroom apartment is expected to rise by more than 5% this year to $3,160, according to apartment rental site Zumper. “Whenever I think of what I pay for my rent a piece of my soul dies,” says Jennifer Brown, a marketing executive who moved to the city a year ago. The monthly median rent here is second only to $3,530 for a one-bedroom in San Francisco.
San Francisco, another city with a high cost of living, has mostly made short-term rentals work. Unlike New York, it welcomes rentals of less than 30 days (and limits them to 90 days a year). But prospective renters there need to fulfill certain legal requirements. In San Francisco, Airbnb hosts must register their property, have appropriate liability insurance and be a “permanent resident” of the city, which means they must spend at least 275 days a year in San Francisco. On Nov. 3, San Francisco residents voted against “Proposition F,” a measure that would have restricted short-term rentals to 75 nights a year. “This election was a victory for the middle class,” Chris Lehane, Airbnb’s head of global policy, said in a statement.
The far tougher restrictions in New York haven’t appeared to work. Around 72% of short-term rentals in New York between January 2010 and June 2014 violated state law, according to a report released last year by the New York State Office of the Attorney General titled “Airbnb in the City”. And commercial users (who own several apartments) accounted for 37% of host revenue, even though they made up only 6% of hosts. There was a socio-demographic gap too. Revenue generated in Manhattan and Brooklyn accounted for virtually all revenue (97%) from private short-term rentals citywide. The three outer boroughs of Queens, Staten Island and the Bronx accounted for less than 3% of all revenue.
It’s tough to live in New York—with or without bed bugs. The Economic Policy Institute think-tank says it’s the fourth most expensive place to raise a family in the U.S. A family of four must earn nearly $100,000 just to get by. And even though most New Yorkers spend more than half their income on rent, according to listings site StreetEasy.com, millions of tenants must still leave their apartments empty when they go on vacation—or risk hefty fines. Few middle-class people can afford to buy or even rent in Manhattan without having roommates, so they must either pay exorbitant rents here or move to the outer boroughs, which are not as popular for people who rent rooms or apartments on Airbnb.
Under current regulations, the law-abiding little guy loses out.