<div class="block"> New York City is cracking down on rentals, which could have an impact on booking platforms like AirBNB and Vrbo. Cheddar News senior reporter Michelle Castillo breaks down the city&#39;s new guidelines and how it can impact everyone from renters and owners to the host platforms themselves.</div>

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Why Rentals Are Useful in NYC

And New York has begun enforcing its rules on short term stays. This means many people who rent out their spaces on sites like airbnb and may be facing stiff fines, but it's not a flat ban. It's just that letting someone stay at your apartment just got a whole lot more complicated. Jeter New senior reporter Michelle Castillo is here to break it all down Michelle. We have so many questions about this. What is the actual rule on renting out your place? At least here in New York City, Hannah, you can still use Air bnbvrbo and similar sites in New York. But the city is now enforcing regulations or those who are renting out their space. So they may face a stiff fine of up to $5000 and platforms face a fine of up to $1500 for facilitating these violations. So though many people are pointing out that airbnbs are the most affected by these rules, it actually actually applies to any company that facilitates short term stays in New York City. So that includes others like vrbo, some listings on even sites like booking dot com and holiday homes, renting someone's space out for 30 days or less in New York is illegal unless the host is present in the home. So even if you're renting a room while the host is still there, you need access to the whole house. So that means things like you can't have locks on bedroom door. Also, the host can only have two people staying at their place at once. As of Tuesday hosts will also have to register with the city if they want to list on those websites. I mentioned if they want to charge money. New York City claims that the short term rentals without any regulation are driving up rents here. They claim people are purposely leaving apartments empty in order to get more of these day or week renters. They also claim it's adding to the housing shortage and you spoke to airbnb about these changes. What's their response? Airbnb pointed out that many us cities already require short term rentals to register. But the New York City rules they feel are especially complicated. Let's take for example, New Yorkers can't even share their apartments if they're away for work or vacation because no one is home. This could also call into question things like dog sitting and paying someone to stay in your home to look after your pet, which is technically illegal in New York. In a statement, the sky who is the global policy director for airbnb said it is willing to work with New York City to create regulations. But the current rules are quote a blow to its tourism economy. This also affects ancillary, small businesses that rely on tourism. He added the city is sending a clear message to millions of potential visitors who will now have fewer accommodation options when they visit New York City. They you are not welcome. In addition, short term rentals offer a cheaper alternative and they include locations that traditional hotels might not be in. So for example, while more than half of the city's hotels are in Manhattan, Brooklyn and Queens locations make up 37 and 13% of airbnb listings in New York City respectively. Also 80% of New York City census areas have airbnb listings but no hotels. So this is giving options for people who want to stay in these spots and airbnb is in New York City with no hotels were about 30% cheaper than their hotel counterparts, right? A lot of great information there, Michelle Cascio. Thank you.