New York dealt a setback to Airbnb on October 21, when Gov. Andrew Cuomo signed a bill into law that prohibits users of the popular online hospitality marketplace and other home-sharing sites from advertising their units for short-term rentals, The Real Deal reported. Those who place such advertising could face fines up to $7,500 under the new law.
“This is an issue that was given careful, deliberate consideration,” said Richard Azzopardi, a spokesman for Cuomo, as reported by the New York Daily News.
Attorney and partner Adam Leitman Bailey of the New York City-based firm Adam Leitman Bailey, P.C. tells The Cooperator of the new law's ramifications:
“Now they have put more teeth into the law by fining those people soliciting customers,” he says. “They’re not going after the customers--they’re going after the actual people renting their units out and fining them heavily. It may make it cost prohibitive to continue this business.”
The New York State Senate had earlier passed the legislation on June 17. New York already bans rentals of units for less than 30 days when the tenants renting out their places aren't present.