Last Monday night in Queens, I asked state Attorney General Eric Schneiderman what he’ll do to ensure that New Yorkers like me can continue to use Airbnb to pay our bills. His response wasn’t encouraging.
Schneiderman told me, “If you’re not running an illegal hotel and you’re following the law, you’ll be fine.”
The problem is, the law’s not so clear — as illustrated by the controversy around Mr. Schneiderman’s subpoena of Airbnb.
The law lets me rent out part of my home if I remain present during my guests’ visits. Beyond that, things get murky.
In fact, the law on home-sharing is so confusing and contradictory that it’s often difficult to say what situations are legal. We don’t want to live with uncertainty, not knowing if we’re legal or if we will need to pay added taxes, in addition to the income tax we already pay on any revenue.
When I lost my freelance job in January 2010, Airbnb made it possible for me to keep my home in Brooklyn. I posted photos of my spare bedroom and immediately I got a request. My first guest was Ed from Amsterdam, a professor coming to the city to pick up his son from school. That summer, he returned to stay again, this time with his whole family.
Airbnb saved me, and continues to do so. In 2011 I was only able to put together 20 days of full-time work. This past July, I worked for a company that declared bankruptcy before paying me. But I knew I’d be safe financially because I had guests arriving. I’m grateful every single day because of Airbnb.
Since the recession began, people like me from all walks of life have been renting out space in their homes using online services like Airbnb. We’re part of a growing movement, the “sharing economy,” of people who make ends meet by sharing their homes, cars, bikes, skills and other things they already own.
For fellow Peers member and Airbnb host Mishelle Farer, home-sharing offers the freedom to pursue her dreams. She’s found that occasionally renting a room in her apartment has helped her transition back to civilian life after ending a career in the military; she’s using the extra income to go back to school.
The threats to Airbnb and the sharing economy have spurred us to action. Mishelle started an online petition with Peers to save Airbnb that has already gathered over 230,000 signers. Meanwhile, I’ve stepped up to organize my neighborhood.
We’re asking the Legislature to adopt a new law that makes sharing legal, with rules that protect public safety and work for everyone.
There are numerous models for regulating the sharing economy to look to. California set an excellent precedent when it legalized ride-sharing services, like Lyft and Sidecar, last month. Over in Europe, the city of Amsterdam recognizes home-sharing as a “stimulant for tourism and the city’s economy,” and is creating clear rules that allow people to get a permit to share their homes. Hamburg has followed suit.
Of course, there are a few “bad apples” using home-sharing services, just as there are in other industries. The state is right to stop those who threaten public safety or create nuisances. But the vast majority of home-sharers aren’t slumlords, and they aren’t hurting neighborhoods. In fact, they’re people like me, working to make our communities stronger.
Creating smart, sensible regulations for the sharing economy will help stop the true offenders more efficiently — and let regular people like me share what we have.
People all over the world are hopeful about the promise of the sharing economy. New York shouldn’t get cut out of the potential economic and social benefits of sharing because of outmoded regulation.
It’s time for lawmakers to create smart rules that let New Yorkers share our food, space, time, talent and assets. It’s time to legalize sharing.
Evelyn Badia is a Brooklyn neighborhood team leader of Peers, a member-driven group dedicated to protecting, growing and mainstreaming the sharing economy.