A fellow blogger recently reported good results using Airbnb, both in offering a place to stay and in vacation rentals she booked.
However, a report issued Thursday by New York Attorney General Eric Schneiderman found illegal uses in New York City listings on the Airbnb website, with as much as 72 percent of Airbnb reservations over the last several years in violation New York law.
The report, “Airbnb in The City,” also found businesses using Airbnb to operate multimillion-dollar operations. In one case, a single commercial user made $6.8 million in less than five years.
In addition, it found that a number of units appear to serve as illegal hostels and short-term rentals are displacing long-term housing options.
The report is based on data obtained by the Attorney General’s Office as a result of a May 2014 subpoena for information about potential illegal hotels using Airbnb’s site.
“This report raises serious concerns about the proliferation of illegal hotels and the impact of Airbnb and sites like it on the City of New York,” said Schneiderman. “We must ensure that, as online marketplaces revolutionize the way we live, laws designed to promote safety and quality-of-life are not forsaken under the pretext of innovation.”
The report offers the first look at how consumers in New York City, one of Airbnb’s largest markets, use the online lodging rental platform. It examined stays between January 1, 2010, and June 2, 2014.
Schneiderman also announced a joint effort with the City of New York to investigate and shut down illegal hotels in the five boroughs.
