Airbnb’s slow checkout? LA looks to follow NYC’s lead and require permitting and a police background check for short-term rental owners in bid to crack down on party houses

The city of Los Angeles is following in New York’s footsteps and requiring Airbnb owners to obtain a police permit after the City Council unanimously voted Wednesday to approve the new law.

Airbnb rental options in New York City have shrunk after cumbersome new government restrictions went into effect in September, essentially banning vacation rentals.

Council President Paul Krekorian claims the new law will tackle illegal behavior in rentals.

DailyMail.com highlighted an Airbnb host whose $3.8 million California mansion was hijacked by a guest who refuses to leave after spending more than 540 days in the home unless she is paid $100,000 in September.

While the council voted 14-0 to approve the new law, some worried it would place unnecessary burdens on the LAPD, which must now issue permits.

LAPD Lt. Scott Moffit said the new regulation will triple the force’s workload.

“The most important thing is that we would tap into existing department resources,” Moffitt said.

The laws are said to be part of an agreement between Los Angeles and hotel unions the LA Times.

The unions tried to organize to get a measure on the ballot regarding hotel rooms and housing for homeless Angelinos.

Under the new law, hotel developers must replace demolished homes for new hotels by building new residential units.

Krekorian says operators should not expect a particularly difficult process.

“My goal is to make (obtaining a police license) as easy, painless and almost automatic as possible,” Krekorian said. “The idea will be that if someone asks for it, unless there’s a complaint from someone, it will be granted routinely.”

Airbnb has not yet commented on the regulation, which appears to be much less strict than laws passed in the Big Apple.

Council President Paul Krekorian claims the new law will tackle illegal behavior in rentals

While the council voted 14-0 to approve the new law, some worried it would place unnecessary burdens on the LAPD, which must now issue permits.

The regulations require hosts to register with the city – or face a $5,000 fine – and guests must have access to the entire property.

If the rental period is less than 30 days, the host must stay with the guests. Rentals are also limited to two people, effectively preventing many families from using Airbnb in the Big Apple.

“The city is sending a clear message to millions of potential visitors, who will now have fewer lodging options when they visit New York City: you are not welcome,” Airbnb Global Policy Director Theo Yedinsky said in a statement.

However, proponents of the law say the regulations are needed in the industry and will help address complaints that arise from short-term rentals, such as noise and parties.

New York City regulations have gone into effect and have resulted in far fewer listings in the five boroughs. Existing short-term rental reservations with check-in dates on or after Dec. 2 will be canceled and refunded, the company said.

The home-sharing giant told its hosts in New York that they had to do so comply with the new lawotherwise their rental could be deactivated.

Airbnb estimated last month that there are about 15,000 active hosts renting out homes in the city. As of August 28, the city had received approximately 3,250 registration applications for the new rules, of which only 257 were approved.

The Short-Term Rental Registration Law, also known as Local Law 18, was passed in January 2022. City officials said renting homes to tourists, not New Yorkers, worsens the city’s housing shortage and drives up the cost of living.

New York City’s restrictions on short-term rentals went into effect Wednesday and include landlords staying with guests and rental properties required to register with the city

Supporters of Airbnb hold a rally outside City Hall in New York in 2015

Airbnb tried to challenge the new regulations in a lawsuit, but the case was dismissed. Pictured: An Airbnb meeting outside New York City Hall in 2015

The city was supposed to enforce the law in March this year, but Airbnb challenged the law in court, saying the new rules would hurt travelers looking for an affordable stay.

The company also said the registration system was too complex and argued the law was in effect a ban.

That case was dismissed in August, putting the ordinance into effect.

Airbnb could lose millions of dollars in one of its largest and most profitable markets. The company said in the lawsuit that it earned $85 million in net revenue in New York City in 2022.

Airbnb’s stock price fell about half a percent to $142.07 on Wednesday.

The regulations could benefit the hotel sector, which competes with platforms like Airbnb. According to STRa company that analyzes hospitality data, New York City had the highest occupancy rate (85.4 percent) among other markets, increasing 1.7 percent year over year, and was the only market with an average daily rate above $300.

Airbnb could lose millions of dollars in one of its largest and most profitable markets. Pictured are two New York City vacation rentals that remain active on the site and appear to be compliant with the new regulations

NYC hosts asked for help as the new rules went into effect. As of August 28, the city had received approximately 3,250 registration applications for the new rules, of which only 257 were approved.

In a Facebook group for professional hosts on Airbnb, VRBO and Booking.com, NYC hosts asked for help.

“New York is essentially closing STRs to everyone unless it’s 31 days or more before a Class B home. Does anyone from the NYC market have any advice on how to proceed?” Jamaal Johnson asked in the group.

While Hannah Nguyen said she has been a host for years and is now left out in the cold.

‘I started Airbnb in Brooklyn, New York in 2011. “I’ve been through a lot of changes with Airbnb and NYC, and as of September 5, I can’t even allow Airbnb to operate roomshare under the latest laws,” she wrote.

Renters are also furious about the new regulations, which have shattered many holiday dreams.

“This happened just two days ago and caused my first Airbnb in two years to be canceled less than 12 hours after I arrived. This led to a long wait with customer service to get me a new address,” said Facebook user Eric Cherry.

“If your Airbnb host in New York bails you out 20 days before your trip and everything else is fully booked or three times the price,” said X user Mariah Kenner.

Airbnb estimated last month that there are about 15,000 active hosts renting out homes in the city

While some social media users said hotel prices have increased due to the new Airbnb rules, the leader of the city’s hotel association disputed the claims.

“The increase in hotel prices has no relation to the law,” Vijay Dandapani, president of the Hotel Association of New York City, told Ny Breaking.com.

“The Hotel Association fully supports the law, which is not a law against Airbnb or any other platform, but against converting houses into hotels,” he added.

Dandapani argued that the law was not unique to New York City, but existed in similar forms in all major cities such as Paris and Barcelona.

“It’s not the job of the Hotel Association to accommodate everyone who wants to come to New York,” Dandapani said.