Jersey City out to become first city in Tri-state area to legalize home-sharing site Airbnb

JERSEY CITY (WABC) -- Airbnb's popularity is growing around the world, but many cities aren't so welcoming to the home-sharing site, with laws making rentals illegal.

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.

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.

"Housing is a high for the middle class..they can use their home to make extra money for school loans, college for kids, vacation money," said Airbnb's Max Pomeranc.

The problem is, right now Airbnb is not officially legal in Jersey City. Mayor Steven Fulop says it's time to change that.

"We need to understand residents like Uber, they like Airbnb, bikes, they like this technology. You can't fight fight technology, you have to learn how to work with it," said Fulop.

Airbnb operates in 34,000 cities worldwide. Mayor Fulop says by jumping onboard, Jersey City stands to earn $1 million a year from the taxes collected on rentals.

"I think it's a good idea. My boyfriend is in LA, he needed a place to stay for 3 weeks so it worked out for him," said Jersey City visitor Lexi Morse.

"When you rent your place, you're opening up to strangers," said Jeff Griswold.

His wife April chimes in from the other side of the fence.

"I think it's a great idea, great to earn extra money, extra income. I say go for it," she said.

Airbnb takes care of the background checks, insurance to cover homeowners in case of damage, and making sure taxes and fees are collected and dispersed.

"So this will allow it to be legal," said the mayor.

"This is still a proposal, it has to go before city council which will happen on Wednesday. If it's approved, Airbnb could be operating as a legal business in Jersey City within a month.