NYC regulations could take big bite out of Airbnb profits
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 responded with a counter-measure designed to appease hostile politicians: a $10 million contribution to city charities helping people struggling with rising rents.
The San Francisco-based company says this money is just a taste of what New York city and state government could reap if restrictions were loosened while imposing hotel-style taxes. 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 so the city can crack down on illegal listings. Critics say they're pushing up rents for New Yorkers by cutting into available properties.
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