Now Jersey City wants to become the first city in the Tri-state area to legalize Airbnb, and officials say it will help their city thrive. As the New York Times reports, Jersey City is becoming an increasingly popular option for tourists looking for affordable accommodations near Manhattan, and Fulop hopes that allowing short-term sleepover web services will enhance that appeal.
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Mayor Steve Fulop announced Monday that rather than fight Airbnb, Jersey City will embrace it and regulate it. Somewhere this very day, amongst the thousands of apartments in Jersey City, at least 400 people are offering their humble abodes or rooms for rent, on Airbnb, and getting paid.
With over 300 Jersey City homes now listed for rent on Airbnb, officials estimate the city will generate roughly $1 million in revenue, which will increase hotel tax revenue by 14 percent.
While similar companies like HomeAway and neighboring cities do not charge a hotel tax directly, Jacobs does not believe the ordinance will stop people from renting homes in Jersey City because Airbnb is “by and large” the market leader.
Even in Airbnb’s hometown of San Francisco, a proposed law on the November ballot would limit the use of homes as hotels through services such as Airbnb. “I think it’s a good idea”. It’s raised concerns about the safety of guests, and whether the service is fair to hotels and inns that are required to be licensed and inspected.
Just ask Ed Ramirez. He now manages 30 listings for between $40 and $110 a night.
Ramirez said it was hard to find long-term tenants for most of his units, but renting them through Airbnb proved more lucrative.
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“That ultimately would be a benefit to our restaurants, businesses and our local economy overall and our residents from a taxpayer’s standpoint”, he said. He does not see the new tax as an impediment to his business. “We can adjust our prices on the fly if nobody is staying”, he said.
