NYC claims more than 25% of Airbnb hosts are flouting short-term rental laws
More than a quarter of Airbnb hosts in New York City are breaking the city’s strict short-term rental laws, with one Brooklyn landlord allegedly using fake profiles of glamorous-looking young women to advertise their spaces, according to The Post.
Over the past 11 months, 605 registered hosts received warning letters from NYC’s Office of Special Enforcement for illegal activities such as renting out entire apartments for less than 30 days and hosting more than two guests at a time.
In March, OSE found that 27% of approved listings were illegal. Among these hosts was Chanaya Bineth, a Brooklyn property owner who allegedly used fictitious profile images and names on Airbnb listings.
One listing featured a photo of a woman named “Avi” who was actually a man named Moshe Katzburg, another listing showed a couple named “Chan” and “Alicia” who were not the actual hosts, and a third listing was promoted by a woman named “Ava” but was registered to Akiva Bineth.
Bineth and his family allegedly submitted fraudulent documents to OSE to obtain registrations for illegal short-term rentals in their buildings, resulting in over $1.3 million in revenue and $47,000 in fines.
The city claims that the use of fake profiles and deceptive conduct against consumers violates regulations such as Local Law 18, which requires hosts to provide government-issued IDs.
Unique Away, Bineth’s company, stated that their goal was to provide professional communication and not to mislead guests.
This is evidenced by the positive guest reviews and consistently high ratings, indicating that guests received the expected level of service at these properties.
The focus on host profile pictures and bios has created a misleading narrative, diverting attention from the real issue. Guests were always in contact with dedicated members of the Unique Away team committed to providing the highest level of satisfaction.
Unique Away has chosen not to provide further comments at this time.
According to the city’s complaint, as soon as Bineth and his team received registrations for the properties, they changed their online listings on Airbnb.com from legal, hosted stays for a maximum of two guests to illegal entire-unit stays for more than two guests.
Christian Klossner, executive director of OSE, stated, “We’re ensuring people who lie to get approved or begin violating the rules after they’re registered are held accountable — protecting a fair marketplace for hosts who follow the rules.”
Bineth, his family, and friends are facing damages of $1 million and a $1,000 penalty for each day they rented out the properties.
Airbnb is not implicated in the complaint or responsible for the actions of its hosts.
The company periodically reminds hosts in NYC to comply with Local Law 18 to avoid potential consequences.
The short-term rental rule, implemented in September 2023, mandates hosts to register with the city and ensure their properties meet strict regulations. This has significantly impacted Airbnb’s operations by enforcing rules that limit rentals to primary residences, require hosts to be present during stays, and restrict guests to no more than two at a time.
Klossner emphasized that “the overwhelming majority of hosts are following the rules.”
