Airbnb Losses the Battle of Votes in the New Jersey City Increasing Short Term Rental Limitations
Nearly 70% residents of the New Jersey City approved short term rental limitations on companies in a hard-fought referendum on Tuesday, 5th November, 2019. Airbnb has been set with another setback in one of their most important markets. Despite a $4.2 million and fierce persuasion campaign by Airbnb to sway electorates, the votes in the New Jersey city were lopsided in favor of restrictions. These latest results of the votes have hurt the company’s presence in the city.
The New Jersey City Mayor Steven Fulop confirmed the news to CNBC in his statement on Wednesday, 6th November, 2019, “The people of Jersey City have spoken.” He further affirmed that “We sent a message to Airbnb and all the multibillion dollar companies that Jersey City and other similar municipalities cannot be bought.”
The New Principles for Short Term Rental Limitations
The new regulations were passed by the New Jersey City lawmakers in June, but were held for the short-term rental advocates for gathering signatures and referendum. The new policies and regulations come with multiple laws for the New Jersey City seeking short term rental limitations on properties, greatly impacting Airbnb. These votes in favor of short-terms rental properties now require strict permissions to operate the properties along with implementing additional regulations which include the following:
• Restrictions and limitations on which properties or units are eligible for use as short-term rentals.
• Exclusion on using a property as a short-term rental. This prohibition will be applied on rentals for more than a total of 60 nights each year in case the operator or owner is not present.
• Policies for short term rental permits and initial permit fees, is $250 application fee and $200 for each year for renewal.
• A restriction on using the rental property with rent operated by other limitations including governmental policies.
The aforementioned new regulations are strict and require permission including fees for the operators. Also, these rules will not ban the short-term rentals completely, but chances are that the number of homes getting listed on the Airbnb sites, will now be less. The new policies limit how the landlords could rent the properties if they didn’t live on the site. Renters are strictly prohibited to serve as hosts in the new regulations.
Request a free consultation
Airbnb’s Listings Face a Clampdown with the Short Term Rental Limitations
The local battle was necessary for the Airbnb company as it faces a clampdown on illegal listings in the largest market in the New York City, despite having small size of Airbnb’s 3,000 listing presence in the New Jersey City. Airbnb also came up with new laws banning the party houses as a response to a deadly shoot in California. As mentioned above, this $30 billion company devoted $4.2 million to facing these regulations. Not only Airbnb, even the laborers’ and hotel’s industry spent about $1 which makes it one of the most expensive local referendum in the New Jersey history.
The new regulations have gained grip over the concerns. Out of the 3,000 listings on the Airbnb platform in the New Jersey City, 500 of them are operated by the hosts in the city. The cost of the houses has raised and benefits for large-scale investors which permits tourists to overpower the residential areas.
Short Term Rental Limitations – Huge Victory for the New Jersey City
Fulop proudly said that, “This is not only a big win for Jersey City, but it’s also a big win for all towns and cities big and small to be able to stand up to the corporations and say that our resident’s safety and quality of life greatly outweigh a $5 million campaign of misinformation from Airbnb.”
Also, one of the spokespersons for Airbnb, Christopher Nulty explained that, “From the start of this campaign, we knew this was going to be one of the toughest fights we’ve faced, with the big New York hotel industry determined to fight home sharing, but we had an obligation to stand up for our community.” He believed in continuing to do all they could do to support the hosts for the Airbnb listings in over 100,000 cities around the world.
In the past few years, the short term rental sector has boomed and regulators are still discovering. Those who are considering to rent a property on a short term basis on portals like Airbnb, remember that the regulation is not certain and can change. For this purpose, prior alternate plan should be prepared should renting out on short term basis no longer be possible.