New York Controversy: A crackdown on "no-tels" (Vacation Rentals)

Budget Travel ^ | June 28, 2010 | Sean O'Neill

[C19fan]

Hundreds of New Yorkers, like others nationwide, have been making a few extra dollars by using sites such as AirBnB, Crashpadder, Roomorama, and Craigslist to sublet pullout sofas, living rooms, and whole apartments.

But that may end soon. This week, New York state senators vote on a bill that would make it illegal for any homeowner or renter to sublet for less than a month. The new law would be a blanket ban on short-term rentals no matter how ethical the renter is. (It's always been illegal to violate co-op leases and condominium bylaws.)

This proposed law is bad news for any budget traveler visiting New York City and renting one of the 3,000 spaces that go for much (much) less than the nightly rate at hotels. Cheap digs may be history.

[C19fan]

They can talk all about "protecting" tourists, but knowing this is NY so the real reason I am sure is the hotel lobby started to complain and their whores in Albany listened. How many tourists who cannot afford $250+ night rooms in Manhattan will instead saw "screw you" NY and spend their vacation money someplace else.

[GeronL]

I do not see why it is the governments business if I want to let someone sleep on my couch for a few bucks.

This is just another barrier against the free market.

[flipper999]

I imagine that they will find ways around this stupidity...eg instead of renting for 1 night for $250 you rent for a month for $1.. however there is a daily entrance/exit fee of $249.

[Joe 6-pack]

"How many tourists who cannot afford $250+ night rooms in Manhattan will instead saw "screw you" NY and spend their vacation money someplace else."

The last two years, I've had to work in and around NYC for a 2-3 month stretch. I've stayed in the Motel 6 in Piscataway, NJ...

[discostu]

As always with government it’s all about the revenue. People doing that aren’t paying the hotel room tax, and since it’s so wide open they never will. Of course the way around this law is you go ahead and “rent” for the month anyway, but with the knowledge the person will only be there for 2 nights. Handshake deals are hard to bust.

[Malone LaVeigh]

I guess that they can always open their homes to their “cousin Harry”, who will be glad to kick in a few bucks for “groceries”. ;-)

[MortMan]

The real reason is the hotel taxes paid for each night stayed.

The second real reason is that some of these sub-letters don’t report their income from the rentals, I’m sure.

Follow the money.

[C19fan]

For some reason, the idiot politicians do not realize there will be a good chunk of tourists who will now no longer vacation NYC so the state and city will lose out on all the sales tax revenue that would of been spent.

[Larry Lucido]

Spare bedroom $3000 a month payable in installments of $100 a day. If you move out early, oh well.

[rwfromkansas]

seems to be a pretty obvious solution, so we’ll see.

[thefactor]

Renting for less than a month is wise. In NYS, if you sleep anywhere for 30 days straight you have legal standing in that dwelling and it’ll take months to get you out legally.

[Vigilanteman]

Bingo! Not so long ago, our own Governor Whore wanted to repeal the sales tax exemption which Pennsylvania has on clothes to raise more revenue.

Mall outlets from King of Prussia in the east to Grove City in the west showed how many jobs would be lost (and with them the payroll taxes, taxes on business profits, etc.) as soon as tourists from neighboring states stopped driving over here for major clothing purchases. Fat Eddy still wouldn't back down, but the state legislature forced him to do so anyway.

Clothing sales here are a major business and tourist draw. Now if only the State Game & Fish Department would have the brains to quit soaking out of state hunters and fishermen for licenses, we'd see a little more of that trade as well.

[GOPJ]

It might also be hard for New York to tax a family renting out a room a few nights a year... I don’t think they’re doing this because they “care”...

[nina0113]

The second real reason is that some of these sub-letters don’t report their income from the rentals, I’m sure.

You mean there are some that DO???

[KarlInOhio]

Money exchanged is for time and companionship only. This is not an offer of room rental. Anything else that may occur is a matter of personal choice between two consenting adults of legal age.

Of course the police will have to troll Craigslist and set up apartment rental stings.

[dfwgator]

For some reason, the idiot politicians do not realize there will be a good chunk of tourists who will now no longer vacation NYC so the state and city will lose out on all the sales tax revenue that would of been spent.

We call that being "penny smart and pound foolish."

[GovernmentShrinker]

Part of the issue is that some of these apartments are rent-controlled or rent-stabilized (technically different in NYC, but same concept). The result is that the leaseholder is making a fat profit, while the actual owner of the property is forced by the government to rent the apartment for way below market rates.

[Leftism is Mentally Deranged]

Protecting hotels and stopping people from making a few dollars that the government doesn’t get to tax.

[a fool in paradise]

When I needed a room in NYC on short notice, I couldn’t even find one for $400 (there was a $250 room that went in 15 minutes after I got over the sticker shock). Never did get a room.

[a fool in paradise]

The second real reason is that some of these sub-letters don’t report their income from the rentals, I’m sure.

Waiting for the crackdown on babysitters providing unlicensed childcare services and using a minor laborforce.