New short-term rental regulations might be on the way in the city of Ithaca. The Ithaca Common Council is proposing an ordinance that would impose anumber of restrictions on short-term rentals, like Airbnb.
Two years ago, the town of Ithaca put a limit on the number of unhosted days each year an owner can operate a short-term rental. New York City went after Airbnb last year to help free up housing for permanent residents.
The stated purpose of regulations in the city of Ithaca includes making housing more affordable and protecting guests.
A short-term rental is defined as any rental unit that’s available for 30 days or less.
The new regulations would require hosts to live on the property they’re renting for about half of the year. That means someone could turn a guest house in their backyard into an Airbnb, but not the second home they bought on the next block.
Ithaca residents spoke at Wednesday’s Ithaca Common Council meeting.
Opponents say the proposed regulations are harmful to local businesses and infringe on the rights of property owners.
Anita Graf, an Ithaca landlord and Airbnb host, said short-term rentals occupy an important niche in the rental market.
“They are an amenity that people want. The day that demand falls, we'll be forced to change our businesses. That's how it goes,” she told the council. “Legislators don't need to strong arm this.”
Supporters of the policy say that housing in Ithaca is already unaffordable and the presence of Airbnbs removes valuable apartments from the market, driving up prices.
Ithaca tenant Katie Sims said even small reductions in housing prices would be a huge win for renters like her.
“Rents are going up extremely fast,” she said. “If my rent went down one percent, I would be shocked and excited.”
A recent study from the Alternatives Federal Credit Union showed a 13 percent increase in costs for a one-bedroom apartment in the city of Ithaca from 2022 to 2023.
Hosts would also need to get a permit from the city. Only “natural persons” can get that permit, meaning corporations and other entities would be excluded.
Properties that don’t meet these requirements can still be turned into long-term rentals or any property that’s rented out for longer than 30 days.
The policy will be voted on next month.