Airbnb won’t cooperate with A.G. investigation

State Senator Liz Krueger authored an illegal hotels law.

State Senator Liz Krueger authored an illegal hotels law.

By Sabina Mollot

Airbnb, a company that reps from the ST-PCV Tenants Association and property management have met with in an attempt to keep tenants from illegally renting out their homes to strangers for short-term stays, is now refusing to cooperate with an investigation by the attorney general.

In an official statement on its website, Airbnb had this to say in response to news reports about the investigation, which seeks to subpoena information about the company’s users.

“We always want to work with governments to make the Airbnb community stronger, but at this point, this demand is unreasonably broad and we will fight it with everything we’ve got,” the company wrote in a blog post. The statement went on to say that its “host” users were “everyday New Yorkers who occasionally share the home in which they live.”

The statement comes on the heels of a court victory for Airbnb, in which it was successfully able to argue that an East Village resident who used its service to rent out his apartment didn’t break any laws because a tenant of record was at home during the time a paying guest stayed there.

Meanwhile, a spokesperson for Attorney General Eric Schneiderman did not respond to a request for comment on the investigation, which was first reported in Crain’s.

Airbnb, however, also said it would “continue conversations” with the A.G. to “to see if we can work together to support Airbnb hosts and remove bad actors from the Airbnb platform. We are confident we can reach a solution that protects your personal information and cracks down on people who abuse the system.”

Despite the encouraging promise, Airbnb’s response when it comes to illegal hosting has been noncommittal in the past, at least where ST/PCV is concerned. ST-PCV Tenants Association President John Marsh had previously asked that he company no longer allow any postings that involve any of the property’s 110 addresses.

A spokesperson for Airbnb offered to answer T&V’s questions, but then didn’t respond when asked if any policy was changed in regards to ST/PCV, where a couple of years ago, management had to crackdown on widespread short-term hosting. Some room-and-board arrangements were made by other sites like Craig’s List and Roomorama, but mainly listings for short-term rentals were found on Airbnb.

The problem does appear to have subsided since then though. This week, a scroll through the site only revealed a few listings for apartments that were obviously located in ST/PCV apartments, and they included one request for a long-term guest as well as a couple of listings offering a room rather than the entire apartment.

A spokesperson for CWCapital did not respond to a question about how management’s investigation into illegal hotel activity was going, but Marsh said CW had last left the TA with the impression that it was continuing to pursue offenders. Marsh also said the TA hadn’t gotten any recent complaints abut illegal hotel activity.

It was in 2010 when a law, authored by State Senator Liz Krueger, was passed that made it illegal for apartments in most types of residential buildings to be rented out for stays shorter than 30 days.

Following Airbnb’s recent court win, Krueger responded to the company’s claim that it would work to weed out those who abuse its system that matches travelers with apartments, rather than hotels to stay in.

“One easy way for them to help is to specifically explain the state and city laws relating to this activity on their website,” she said in an official statement, “and have clear guidelines pop up as a splash page whenever a host is listing a unit in New York City or a guest is looking at NYC listings. After all, a tenant may see this as an easy way to make some fast cash, and clearly Airbnb is taking a cut, but the building owner has rights too and faces most of the liability if things go wrong.”

She added that if “Airbnb wants to remove bad actors, they should require their hosts to provide addresses and apartment numbers. Making clear what is and is not legal in a community is the best way to ensure fewer people will unknowingly break the law, risking eviction from their homes and/or fines from the government.”

Krueger spokesperson Andrew Goldston added that while the law was intended to weed out the worst of the offenders, those who have made illegal hotels a business rather than an occasional way to earn cash, any bookings at all are still illegal in many buildings and the feeling of the senator is that Airbnb “is trying to draw a broad line that’s very convenient for them.”

2 thoughts on “Airbnb won’t cooperate with A.G. investigation

  1. This should be a matter of PCV/ST policy only. Management has the resources to crack down on this; they seem to have had great success.

    I think the law isn’t a great law. Enforcement of lease terms should be a private matter for landlords. Apartment owners of all kinds have short-term sublets all over the city without life coming to a halt, and many other locations have successful AirBnB services. To make it illegal by law is a step too far, only benefitting the corporate chain hotel owners by forcing all reservations through them. Staying in accessible hotels in the city is 2x-4x as expensive as paying the average rent. That seems absurd, considering how expensive rentals have become on their own. And it’s the fault of very bad development policy in the city over the past 50 years; previous mayors have eradicated traditional SRO housing and replaced it with nothing, while the only significantly developed property type in the interim has been luxury condos. (Not any kind of co-ops or mid-level condos or any rentals or anything of any other type. Just luxury condominiums. That’s it.) Throwing a restrictive law on top of that to eliminate a progressive form of property use is unreasonable, perhaps fascist.

    But this isn’t an argument to allow sublets in PCV/ST. It’s completely reasonable to disallow sublets and boarding for this property group. It wasn’t built to support it, and it’s not what the residents want.

  2. Airbnb and other such transient rentals do not belong in Stuyvesant Town or Peter Cooper Village. We need to know who our neighbors are. We have an epidemic of thefts and pilfering and I wouldn’t be surprised if the rent-a-room people are the culprits. Unfortunately, we have a so-called “management” company that doesn’t give a hoot about a stable and safe environment; all they care about is collecting rent regardless of how it gets collected. If we are ever to return this property to being a safe and livable environment we need to get rid of Compass Rock and their unconscionable “overlords” CWCapital. Right now, we are anybody’s and everybody’s squat.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.