New York City will delay enforcement of a new city ordinance that Airbnb says could limit the number of individuals who can rent apartments in the town, in line with Friday’s lawsuit.
The short-term rental company filed a lawsuit against the town on June 1 over what it called a “de facto ban” on short-term rentals, which is predicted to enter effect July 1.
By law, landlords should be everlasting residents of rental units and must register with the Mayor’s Office of Special Enforcement before posting rents.
The Authority won’t positive hosts or booking services until September 5, in line with records.
“Each parties have agreed to a brief stay of execution to provide them the chance to present their case fully to the court,” said Jonah Allon, deputy press secretary for the office of New York City Mayor Eric Adams.
Airbnb alleged that the law would make it tougher for hosts to do business by requiring them to comply with quite a few zoning, housing, and maintenance and construction regulations.
“We hope the town will use the extra time to work with us on an affordable alternative solution that may profit hosts, tourism and the local economy,” Airbnb lawyer Karen Dunn, a partner at Paul, Weiss, said in an announcement.
Airbnb has reported that over 5,500 short-term rental spaces are booked in New York City for over 10,000 guests in the primary week of July.
The corporate’s shares rose 5.7% to $124.59.