"Auckland-founded Kiki Club launched its peer-to-peer subletting startup in New York City in 2023 with the mission of helping renters sublet their apartments while traveling for extended periods. However, Kiki's model violated local short-term rental laws, leading to its shutdown this past June. The New York Mayor's Office of Special Enforcement (OSE) announced on Wednesday that Kiki has agreed to pay over $152,000 to settle charges."
"Backed by Blackbird, the Airbnb competitor aimed to simplify the subletting process and boldly promised a solution that would let users sublet their spaces for up to six months. The platform used a matching system similar to those of dating apps, connecting listers and renters based on their preferences. However, the startup found itself on the wrong side of NYC's short-term rental laws. Specifically, Local Law 18, which was enacted in 2022."
"This legislation imposes strict guidelines on short-term rentals, allowing them only if the host is registered with the OSE as a short-term rental host and meets additional criteria, such as staying in the same unit as the guests. When the law was first introduced, many Airbnb hosts found the regulations too difficult to manage, leading to a dramatic 85% drop in short-term rentals, according to Inside Airbnb, an organization that monitors the platform's data."
Kiki Club launched a peer-to-peer subletting platform in New York City in 2023 to help renters sublet apartments during extended travel. The platform allowed users to sublet spaces for up to six months and used a matching system similar to dating apps to connect listers and renters based on preferences. Local Law 18, enacted in 2022, restricts short-term rentals to hosts registered with the OSE and requires hosts to meet criteria such as staying in the same unit as guests. Booking services must use OSE verification and face penalties for unverified transactions. Kiki failed to submit required quarterly reports and did not verify nearly 400 transactions. The company agreed to pay over $152,000 to settle charges and shut down operations.
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