A judge has ruled on the case of Airbnb in Manhattan, deciding that the rental service violates an "illegal hotel" law, according to CNN Money. Airbnb is a web site that lets people rent out their apartment to travelers.
New York state law dictates that residents can't rent out their property, in whole or in part, for fewer than 30 days. Airbnb has made the argument that the law is intended to prevent landowners from purchasing apartments and running hotels out of them, not to prevent individual tenants from renting out their own homes.
City officials didn't agree with the web site's argument and have fined Nigel Warren, the tenant involved in the case, $2,400 after he rented out part of his East Village condo for three nights in September.
In September, Warren returned from a three-night trip to find his landlord had been the recipient of five violation notices from the city resulting from the short-term rental.
The violations were initially dismissed after the building department failed to file the correct paperwork. Then, Warren was instructed to pay $7,000, including fees for violating zoning codes, and then the zoning violations were also thrown out.
Another aspect of the case that made things more complicated was that Warren's roommate was home during the rental, and the law seems to provide an exception for that type of situation. However, after a hearing on May 9, Administrative Judge Clive Morrick ruled that Warren violated the hotel law because the exception is meant for houseguests, not "complete strangers who have no...relationship with the permanent occupants."
Airbnb filed a motion to intervene during the court proceedings, and released a statement Tuesday, saying that the company intends to keep fighting. A spokesman for the company declined to say if they would pull their New York City listings.
"This decision runs contrary to the stated intention and the plain text of New York law, so obviously we are disappointed and we are considering all appeal options as we move forward," Airbnb said in a statement. They called the decision "wrong on the law, and bad for New York."
Airbnb has pressed the city to amend its law and allow resident to provide short-term rentals. They also said "confusing and often contradictory laws" make it difficult for both the hosts and Airbnb to understand the city's rules.
The company does include a warning in their terms of service that resident are responsible for any legal trouble that may result from them renting in violation of laws, but if residents become hesitant to use the service, the future of Airbnb will fall into question.
This article is copyrighted by Travelers Today, the travel news leader
