The new limits going into effect on Airbnb properties in New York are likely to also have a big impact on property taxes. Here’s what you need to know…

The New Airbnb Ban

New York’s war on Airbnb certainly isn’t over. In fact, new limits and enforcement have created what Airbnb equates to an all out ban that is already disrupting trips and getting hosts removed from the platform. 

Similar to other destinations, tight new requirements may eliminate the opportunity for most hosts to continue to operate short term rentals or lease out space in their properties. 

So, what impact can we expect to see?

The Impact On Income

Both large and small property owners are likely to see an immediate hit to their income this year as a result. With these income streams largely being cut off by the end of year. 

Most cannot just switch to leasing these properties out to annual tenants. High inflation of property holding costs for landlords have ensured that. As well as rent controls. 

Inability To Pay

So, the flip side of this is that many hosts and landlords simply won’t be able to keep up with their bills. Which they took on with the expectation of this ongoing short term rental income. 

This not only means their personal credit cards and auto loans, but real estate loans, and property taxes too. 

Many could lose their properties. Though this may often first happen due to past due property tax bills, rather than delinquent mortgage payments. 

In turn, reduced revenues for local governments mean tax rates will need to be raised to keep up income for towns, counties and states.  

This can be compounded by declining property values, and as investment capital flees elsewhere. To destinations where these rentals are being allowed. 

Appeal Your Property Taxes

This situation is only going to compound and accelerate. Which is made even worse if you are overpaying on bills like your annual property taxes, without challenging and appealing them. 

If you’ve been relying on this type of income, it is time to rethink your living and financial plan. Consider the impacts ahead. Though also be aware that by minimizing your expenses now, you may still be able to get through it.