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New York City issues first illegal Airbnb fines

New York City issues first illegal Airbnb fines

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Two New York City property managers were fined this past week after allegedly listing short-term apartment rentals on Airbnb, according to the New York Post. Property owner Hank Fried and real estate broker Tatiana Cames were collectively charged for 17 violations, each of which costs $1,000. The allegedly illegal properties were located on the Upper West Side in Manhattan and in Bedford-Stuyvesant in Brooklyn.

The law under which they were charged fines people who rent out entire apartments for fewer than 30 days. State lawmakers believe those rentals encourage property managers and owners to construct what essentially amount to hotels in residential buildings.

Fried was charged with 12 violations while Cames was charged with five. Fried has hired a lawyer who is fighting the charges, but both he and Cames have to pull their listings. If they don’t, their violations go up to $5,000 each. And then if they still continue to list them, the violations jump to $7,500.

Airbnb sued New York City this past year over the law but dropped the lawsuit after it settled with the city in December. Airbnb agreed to allow New York to pursue violators so long as prosecutors only went after hosts, as opposed to the company itself.