New state law bans some Airbnb advertising

A new law signed by Gov. Andrew Cuomo could have a huge impact on home-sharing sites like Airbnb.



The new law makes it illegal for such sites to advertise short-term rentals on multifamily homes without a tenant present.



Such rentals were already illegal, but the new law enacts a fine of thousands of dollars just for advertising.



"I'm not able to work at this point, but [Airbnb] covers most of my rent, my food bill, electrical, gas," says Ada Garbutt, who lists rentals on Airbnb.



Despite being a live-in hostess and exempt from the new rules, Garbutt says she's afraid that the law will diminish traffic on the Airbnb website and damage her income.



Airbnb has filed a lawsuit over the new law, which is ostensibly targeted at people who sublet rooms with no intention of ever living in them.


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