The new law regarding short-term rentals on Airbnb is certainly not to be taken lightly, as demonstrated by the recent case involving Mega Home and the broker Katherine Cartagena, who, after having generated considerable profits estimated at around $2 million thanks to short-term rentals, they had to surrender $845,000 as part of a settlement with city and state authorities.
The investigation revealed that between 2019 and 2022, approximately 2,000 guests stayed in the two buildings under investigation, totaling approximately 550 short-term rentals that did not comply with the new city law. This legislation, established in 2022 under the name Local Law 18, was introduced with the intention of regulating short-term rentals, imposing restrictions, and the registration of properties with a dedicated city registry, the Mayor’s Office of Special Enforcement.
Restrictions imposed by law include the requirement for hosts to be present in the apartment during stays of less than 30 days, the maximum limit of two guests at the same time, and the prohibition on renting entire apartments for periods of less than 30 days.
An initiative that would address the affordable housing shortage in New York by providing tighter regulation for short-term rentals and ensuring greater availability of apartments for long-term residents.
The Mega Home and Katherine Cartagena case shows that city authorities are determined to enforce the new law and prosecute those who violate it, including through significant economic sanctions. This event will serve as a warning for Airbnb owners and operators, who must be aware that their actions could lead to concrete punishments.
