New York City’s regulations under Local Law 18 forced Airbnb to remove thousands of listings last fall, leading to the rise of an underground market for apartment rentals in the city. This has given rise to startups like Ohana and HostU, which are attracting investments from big names in the industry, as they seek to grab listings that align with the city’s stringent rules.
One of the biggest challenges for hosts in New York City lies in complying with the new regulations, which include the need to be present when guests are staying unless the rental period exceeds 30 days. As a result, private rental groups on platforms like Facebook, Instagram, and WhatsApp have proliferated, charging fees for listings and services.
Ohana has been at the forefront of attracting investors, with former Airbnb executives and real estate marketplace Zillow’s co-founder among those supporting the startup. With a focus on rentals longer than 30 days, Ohana has managed to recruit hosts from various social media groups, reaping over $2 million in rent revenue.
HostU, founded by a Northwestern University student, is also making waves in the student housing sector, securing investments to expand its services in New York City. Meanwhile, established players like Furnished Finder have seen a surge in demand, particularly following the implementation of Local Law 18.
Overall, these startups are capitalizing on the shifting rental landscape in New York City, catering to hosts and renters seeking alternatives in the midst of stringent regulations and the evolving home-sharing market.
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