Airbnb faces major challenges in New York

Last week, New York Governor Andrew Cuomo signed a law that means people who list their apartments on short-term rental websites like Airbnb can be fined up to $7,500 throughout the state, although NYC is the most significant market.

That’s just the latest of many challenges to Airbnb in the city, too. In 2010, city officials made it illegal to rent an entire apartment (as opposed to a room or section) for less than 30 days. But this most recent move affects Airbnb so severely that the company has filed a lawsuit against NYC mayor Bill DeBlasio, New York state attorney general Eric Schneiderman, and the city of New York itself, claiming that these new restrictions will do serious damage to its business.

Although Airbnb has vowed to fight New York City’s tough new legislation, the Big Apple isn’t the only place where the company is facing pushback. Citing overcrowding, Iceland has restricted the number of days people can list their pads on home-sharing sites, and New Orleans and Barcelona are among the cities that fine hosts or Airbnb itself for running afoul of hospitality laws, such as not paying hotel taxes or failing to provide fire extinguishers and other safety items.

New York skyline