Skift Take
Short-term rental regulations in New York City have harmed some businesses, but here's an example of a startup whose founders said the rules have helped.
Ezra Gershanok and Jacob Halbert had made almost nothing in sales for their apartment subleasing startup until this spring.
Then, they say, the platform got 1,000 new listings in New York City in just two months, and sales jumped to $1.2 million in May. The founders believe the growth spurt stems from Local Law 18, new regulations enacted last fall around short-term rentals.
The startup, called Ohana, is meant to connect hosts and guests for the mid-term rental market, defined as stays between 30 days and 12 months. The platform facilitates an introductory video call between the parties, along with a sublease agreement and payments.
“The reason we had crazy growth in the spring is because there's so many people that come to New York City for the summer, and Local Law 18 brought us a lot of supply,” Gershanok said from an apartment in Hell’s Kitchen that the founders are renting through Ohana. “New York City kind of needs this. They need a new legal sublet market, and there's 16,000 Airbnb hosts that aren't using Airbnb anymore that need an alternative.”
Local Law 18 requires that New York City short-term rental hosts register their listings, which must be for a bedroom within a unit where the ho