A stay in a New York hotel can be expensive which is why Airbnb - a platform where New Yorkers can rent out rooms in their homes - was very appealing to tourists, but now a judge has ruled the service illegal in the city.
The law violated is the illegal hotel law, which prevents residents from renting out their property for less than 29 days. According to CNET, the law originally meant to prevent landlords from turning residential properties into hotels.
The law was originally put in place as a means to stop landlords from running illegal hotels from their property.
However, if you are running an Airbnb in New York City at the moment, there is no need to worry just yet. The law is only actionable as a secondary offense. For example, if the police show up after a noise complaint and then find you renting out your place, only then are you in trouble.
Airbnb responded with the following statement:
"This decision runs contrary to the stated intention and the plain text of New York law, so obviously we are disappointed. But more importantly, this decision makes it even more critical that New York law be clarified to make sure regular New Yorkers can occasionally rent out their own homes. There is universal agreement that occasional hosts like Nigel Warren were not the target of the 2010 law, but that agreement provides little comfort to the handful of people, like Nigel, who find themselves targeted by overzealous enforcement officials. It is time to fix this law and protect hosts who occasionally rent out their own homes. Eighty-seven percent of Airbnb hosts in New York list just a home they live in--they are average New Yorkers trying to make ends meet, not illegal hotels that should be subject to the 2010 law."