May 8, 2017

Legislation to regulate Airbnb introduced in state Senate

A bill, S-3119 that would set the minimum insurance requirements for people who list their homes on Airbnb was introduced in the Senate on May 1. Under the bill, a "registered host," defined as the owner or lessee of a residential unit, must maintain property liability insurance in an amount of no less than $500,000 or demonstrate that the "transient space marketplace," defined as a digital platform through which a person offering space for accommodation to transient guests may offer the space for accommodation in exchange for monetary or other compensation maintains liability coverage for the unit in an equal or higher amount.

This bill would require the owner or lessee of a residential unit to apply for and receive a short-term residential rental registration number prior to listing a property on a "transient space marketplace." In addition, registered hosts may only rent their entire residential unit while they are not present for a maximum of 30 consecutive days per year. Under the bill, municipalities would be permitted to further limit the owners of property from offering their primary residence for rent on a transient space marketplace for a period of 30 days or less. This bill does not apply to seasonal rentals. The bill has been referred to the Senate Community and Urban Affairs Committee for consideration. In addition an identical bill was introduced in the Assembly.