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Airbnb Hires Gibson Dunn in Fight against New York
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AirBnB new york

Summary: New York has prohibited the advertisement of short term rentals where the owner is not occupying the apartment by slapping a large fine on the home owner.

As New York passes restrictions on the use and advertisement of Airbnb in New York City, the alternative short-term rental agency is gearing up to fight back. They warned they would sue Mayor Bill de Blasio, the City of New York and more if the city went through with the restrictions. Now they have retained Gibson Dunn to take care of business for them.

  
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Gibson Dunn has gained attention in the last year or so for their involvement in the Bridgegate scandal and the Prospect Park West bike lane debacle. Partner Robert Mastro is responsible for suing New York State for the requirement of fast food restaurants to pay their workers a minimum wage of $15 per hour.

Read Gibson Dunn Bills New Jersey $1.1 Million for GWB Scandal Investigation.

The new rules tighten the services provided by home-sharing services like Airbnb, placing a hefty fine on people who rent their entire, unoccupied apartment for less than 30 days. A law regarding this was already established in 2010 but now New York seeks to forbid advertising for these types of deals and imposes up to a $7,500 fine.

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Airbnb’s head of public policy in New York, Josh Meltzer said, “State officials rewarded a special interest – the price-gouging hotel industry – and ignored the voices of tens of thousands of New Yorkers. A majority of New Yorkers have embraced home sharing, and we will continue to fight for a smart policy solution that works for the people, not the powerful.”

There are approximately 46,000 listings on Airbnb in New York. Airbnb argues that 75 percent of the hosts use the proceeds of renting out their apartments to afford their own apartments in the high-priced real estate and rental market in New York.



Read 8 Money Saving Tips for Traveling on a Budget.

Paris has steeper penalties for home owners that violate regulations, maxing out at $108,843. Airbnb operates in over 190 countries and is valued at $30 billion.

Do you think the government should be allowed to regulate how people want to rent out their properties or rent properties? Tell us in the comments below.

To learn more about Airbnb, read Lawsuit: Airbnb Isn’t Responsible for Enforcing San Francisco Laws.

Photo: blog.vacayo.com



 

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