East Hampton Weighs AI Measures Against Illegal Short-Term Rentals

East Hampton is exploring ways to curb illegal short-term rentals, prompted by findings that about half of its nearly 2,000 properties lack proper licenses.

With illegal bookings spiking in the region’s upscale neighborhoods, local officials attribute the rise to an influx of new investors. To tackle this issue, they are considering implementing artificial intelligence to identify unauthorized rentals and raising fees for property owners.

“We’re seeing commercial interests encroaching on residential areas—investors looking to profit without any commitment to our community,” noted Deputy Supervisor Kate Rogers during a recent town board meeting.

Rogers suggested acquiring AI software to monitor rentals within town, introducing a hotel-style tax on local AirBNB-type stays, or raising registration fees for landlords.

Other ideas on the table include limiting rentals to homeowners who actually reside in the properties.

At present, town regulations mandate a minimum stay of 14 days for short-term rentals, allowing homeowners to list their properties for two-week periods only twice a year. This has led to a thriving black market on platforms like AirBNB, where weekend rates can soar above $1,000.

However, local homeowners express concern that these enforcement actions could inadvertently impact those who are trying to play by the rules, potentially driving prices down for compliant homeowners.

“Property taxes are so high that without listing our house on AirBNB, we’d struggle to afford living here,” said Stephanie, a rental host who inherited her grandparents’ home from 1974. She added, “We’ve witnessed developers come in and push out long-time residents. It’s crucial to establish reasonable regulations that keep housing affordable, but these proposals feel too broad.”

Town representatives recognize the significance of short-term rentals in supporting the local economy, which many residents depend on. They stress the importance of balancing regulation with the financial realities for community members, as new policies may put a strain on their finances.

In August, Southampton moved similarly to ban short-term rentals, enforcing a minimum stay requirement of two weeks.