In New York, there has been a massive crackdown on Airbnb users.
While it’s not illegal to rent out a room short term in New York, if you live in a permanent residential apartment building and rent out your entire apartment for less than thirty days, you are breaking the law.
According to a report released by the New York Attorney General in 2014, 6% of Airbnb users in New York City had 3 or more listings. Those users earned a collective $168 million (USD) and were responsible for more than a third of all bookings and revenue in New York.
The top Airbnb host had 272 listings and earned more than $6.8 million (USD) in revenue.
This kind of professional hosting is no longer tolerated in New York, and hosts using Airbnb in this way are being punished.
In June 2016, New York legislators voted to approve a law that imposes fines between $1,000 and $7,500 for people who advertise multiple dwelling units online as a rental for less than 30 days.
Will investors face this same crackdown in New Zealand?
The simple answer is that it hasn’t been tested in court.
Several Kiwi property managers and body corporates have tried to change their rules and policies to ‘ban’ Airbnb, but if hosts are acting within legal requirements, there is possibly no legal way to enforce the ban.
In Australia, residents of a waterfront complex in Melbourne spent $AU100,000 in legal fees trying to keep Airbnb out of their building – and they failed.
So, it’s all good then?
While Airbnb hosts might be confident in the legality of renting their units or homes short term (for now), there are still other considerations to remember. It’s important to talk to an accountant and insurance broker about the tax and insurance implications of your Airbnb rentals.
Disclaimer: All information provided is of a general nature only and does not constitute professional advice. Seek advice from licensed professionals to see if advertised results are possible for your situation.