BY THE WAY ( A PSA )
COULD REGULATION RESHAPE SHORT-TERM RENTALS ?
Here ’ s what advisors should know about new regulations affecting the vacation rental market .
WORDS / LESLIE LANG
KASPARS GRINVALDS / SHUTTERSTOCK . COM
Though advisors worldwide book stays through short-term vacation rental platforms — Airbnb had 448 million bookings per night in 2023 — new regulations rolling out across the United States may drive a shift in bookings back to hotels .
In many parts of the U . S ., new regulations are heavily impacting stays booked through rental platforms , such as Airbnb , VRBO , Booking . com and other short-term booking services for stays shorter than 30 days .
Nadia Henry , a travel advisor specializing in luxury high-end travel and escorted groups and owner of Travel With Sparkle , says these recent regulation changes call attention to short-term rentals in ways travelers haven ’ t paid much attention to before now .
“ I think travelers are starting to see the big picture of Airbnb and similar types of accommodations and finding more value in staying with hotels ,” she said .
In New York , Local Law 18 , also known as the Short-Term Rental Registration Law , went into effect in September 2023 . This new policy applies to rentals of less than 30 days in buildings with three or more units and requires :
• The host to be present in the home during the rental period
• The number of guests to be limited to two
• That guests must have access to the entire home
With this change , the industry saw an immediate shift . In December 2023 , Airbnb demand in New York City fell 46 % compared to a year earlier . Bookings in New Jersey , which is just a short train ride away and not subject to the new restrictions , rose by more than half . Due to increased demand , hotels in New
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