As its popularity and valuation soars, Airbnb is inspiring deep vitriol here in New York. The 8-year-old San Francisco-based startup has been accused of everything from siphoning millions of dollars away from the hotel industry, infringing on the quality of life in buildings to exacerbating the affordable housing crisis.
While the company been met with opposition around the globe, it has faced a particularly tough battle in its biggest U.S. market, where in 2010, a state law made it illegal for New York apartment dwellers to rent out their homes for fewer than 30 days — unless they are home.
Despite spending roughly $800,000 over the past six years lobbying in Albany and at City Hall, Airbnb hasn’t made any legislative inroads. According to several estimates, more than half of its New York City listings are illegal. Not surprisingly, a crackdown has ensued.
In November, Mayor Bill de Blasio pledged $10 million over the next three years to go after individuals violating short-term rental laws — in addition to three proposals floating in the City Council that could curb Airbnb rentals. The most damaging of those would raise maximum fines on illegal hotels from $25,000 to $50,000, although it’s unclear whether those fines would apply to hosts or landlords.
As a result, Airbnb is focusing on establishing a grassroots strategy resembling a political campaign. Last October, it hired Josh Meltzer, the former deputy chief of staff to Attorney General Eric Schneiderman, one of its harshest critics, as public policy director. Meltzer is spearheading the company’s effort to get favorable laws passed on the state level, and according to him, the sheer number of Airbnb users — totaling 321,000 — gives it political clout.
Last year, Related Companies tried to evict a rent-stabilized tenant from its MiMa apartment tower in Hell’s Kitchen after discovering he had listed the two-bedroom for $649 per night. Henry Ikezi paid $6,670 a month for the unit, which had a market rent of over $9,000 a month. This past December, a state appeals court upheld a housing judge’s decision to evict Ikezi, concluding that tenants have no right to profit from apartments with rent restrictions. The verdict was seen as a win for all rent-regulated landlords, but especially Related, which has aggressively tried to crack down on illegal Airbnb listings in its buildings.