Officials in New York have determined that Airbnb is illegal, despite efforts by the online firm to persuade the city otherwise. The law violated is the illegal hotel law, which prevents residents from renting out their property for less than 29 days. According to CNET, the law originally meant to prevent landlords from turning residential properties into hotels.
The ruling doesn’t necessarily mean all Airbnb hosts will be cracked down on, as the city only enforces the rule when a complaint is filed.
What other surprises are in store for the new collaborative economy? This seems like a step back for New York’s desire to be the next Silicon Valley.