NYC regulations could take big bite out of Airbnb profits

August 15, 2018 - 5:42 pm

NEW YORK (AP) — Airbnb faces tightening regulations in New York City that could take a big bite out of its profits.

On Wednesday, the short-term rental company offered a counter-measure designed to appease hostile politicians: a $10 million contribution to charities helping people with rising rents, homelessness, health care and education.

The San Francisco-based company says this money is a taste of what New York's city and state governments could reap if restrictions were loosened while imposing hotel-style taxes. Most rentals for fewer than 30 days now require the owner's presence.

Last week, Mayor Bill de Blasio signed a bill that requires Airbnb to reveal the names and addresses of hosts, allowing the city to crack down on illegal listings. Critics say they're pushing up rents for New Yorkers by diminishing available properties.

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