Local Government Requirements for Airbnb

Created:

Jul 6, 2020

Updated:

July 6, 2020



The sharing economy has been growing quickly over the years and businesses need to be aware of all the challenges that come with the shifting landscape. From a variety of state laws, to requirements for independent contractors, to the benefits workers are looking for, there is much to consider. Here is a quick snapshot of what workers need to know when looking to become hosts on Airbnb.

General Requirements

Airbnb has limited requirements for hosts on the platform. Anyone who can provide safe and comfortable accommodations can be a host, as long as they follow all local regulations and follow basic hosting requirements.
The company's basic requirements include being responsive, accepting reservation requests, avoiding cancellations, maintaining a high rating, and providing essential amenities.

New York, NY

New York City is the largest market for Airbnb, but the city claims that up to 2/3 of the listings are illegal.
The laws in New York City state that entire apartments in multiple dwellings can't be rented for less than 30 days, they can't be advertised, and there can only be up to two paying guests.
If a long term rental is changed to short term rental use, a new certificate of occupancy needs to be filed indicating the rental is now for transient use. An application for a new certificate will also trigger an inspection to make sure occupancy standards are met.
Hosts that live in rent-controlled housing need to ensure that short -term rentals are allowed, and that they aren't charging rents that are higher than allowed. "The New York Administrative Code (available under “ADC” on New York State’s website) contains rules for rent stabilized (Section 26-501-26-520) and rent controlled (Section 26-401-26-415) housing."

Davenport, FL

Davenport, FL, was listed as a location with high earning potential for Airbnb so we included it in our analysis.
Many Airbnb listings in Florida will be categorized as vacation rentals which require a rental license to operate. The rentals would fall into one of two categories: dwelling or condo.
The state is pushing for statewide regulations, while many cities want the ability to enact their own laws around short term rentals.
Overall, Davenport was listed as one of the locations with the least legal issues.

General Insights

Some cities with relatively lax requirements for Airbnb include Dallas, El Paso, and San Antonio, TX; Phoenix, AZ; Indianapolis, IN; and Columbus, OH.
U.S. cities making it more difficult for Airbnb hosts include Los Angeles, CA; San Francisco, CA; New York City; Charleston, SC; Santa Monica, CA; New Orleans, LA; and Las Vegas, NV.
In Las Vegas and New Orleans, hosts must register with the city; in Santa Monica host must be on property during the rental; and Charleston has used undercover teams posing as tourists with the goal of uncovering illegal listings.

