X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

  Tenant appeals from a final judgment of the Civil Court of the City of New York, New York County (Jean T. Schneider, J.), entered August 3, 2017, after a non jury trial, awarding possession to landlord in a holdover summary proceeding.Per Curiam.Final judgment (Jean T. Schneider, J.), entered August 3, 2017, affirmed, with $25 costs.The essentially undisputed trial evidence showed that tenant listed her rent stabilized apartment on the Airbnb website at nightly rental rates starting at $200 per night, and entered into more than one dozen separate rentals totaling 79 nights in 10 months, with up to 5 guests per rental, collecting as much as $366.00 per night, more than four times tenant’s daily rent of $90.00. This evidence amply supported the trial court’s conclusion that tenant commercialized her apartment, an incurable violation of the Rent Stabilization Law (see Goldstein v. Lipetz, 150 AD3d 562, 567 [2017], appeal dismissed 30 NY3d 1009 [2017]; Gruber v. Anastas, 100 AD3d 829 [2012]; 220 W. 93rd St., LLC v. Stavrolakes, 33 AD3d 491 [2006], lv denied 8 NY3d 813 [2007]). In addition, tenant’s illegal, de facto hotel operation showed complete disregard for the legitimate security concerns of landlord and other tenants of the residential building, who were subjected to dozens of transient strangers staying for short periods in tenant’s apartment, which illegality itself warranted termination (see 335-7 LLC v. Steele, 53 Misc 3d 150[A], 2016 NY Slip Op 51689[U] [App Term, 1st Dept 2016]; 128 Second Realty LLC v. Dobrowolski, 51 Misc 3d 147[A], 2016 NY Slip Op 50772[U] [App Term, 1st Dept 2016] [Shulman, J., concurring]).Contrary to tenant’s appellate argument, she was not entitled to a notice to cure or any further opportunity to cure. “Once substantial profiteering has been established, the tenant is subject to eviction without any right to cure, as a matter of law” (Goldstein v. Lipetz, 150 AD3d at 570; see 335-7 LLC v. Steele, 53 Misc 3d 150[A]; 42nd & 10th Assoc., LLC v. Ikezi, 50 Misc 3d 130[A], 2015 NY Slip Op 51915[U] [App Term, 1st Dept 2015]; Brookford, LLC v. Penraat, 47 Misc 3d 723, 743-745 [Sup Ct, NY County 2014] [Edmead, J.]). Moreover, it is doubtful that a cure would be possible. “In this context, ‘cure’ does not mean simply the termination of the illegal subletting, but also the refund to the subtenants of the overcharges” (Goldstein v. Lipetz, 150 AD3d at 571). Given the number of individuals tenant hosted via Airbnb, with whom she had no direct financial dealings, it appears that the overcharges tenant collected “could not practicably be refunded” (id.).Tenant’s claim that landlord treated the apartment as a market rate, unregulated unit does not aid her cause. “In determining whether a dwelling unit is subject to rent regulation, what the parties think might be its status or even what they agree to be its status is not dispositive; what is controlling is whether the premises meet the statutory criteria for protection under the applicable regulatory statute” (546 W. 156th St. HDFC v. Smalls, 43 AD3d 7, 12 [2007]). Equally unavailing is tenant’s argument that she did not know the premises were stabilized when she engaged in the challenged conduct, as it is well settled that ignorance of relevant law is not a defense to complying with legal obligations (see Stauber v. Antelo, 163 AD2d 246 [1990] [sublet overcharge]; also see Fox v. 12 East 88th LLC, 160 AD3d 401 [2018]). We also note that while tenant seeks to avoid the burdens of rent stabilization in the instant proceeding by claiming she was unaware that the apartment was stabilized at the time of her Airbnb subletting, she nevertheless seeks to reap the benefits of stabilization through a rent overcharge action in Supreme Court, wherein she seeks, inter alia, treble damages for alleged rent overcharges collected by landlord during the same period of time1.THIS CONSTITUTES THE DECISION AND ORDER OF THE COURT.

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
December 02, 2024 - December 03, 2024
Scottsdale, AZ

Join the industry's top owners, investors, developers, brokers and financiers for the real estate healthcare event of the year!


Learn More
December 11, 2024
Las Vegas, NV

This event shines a spotlight on how individuals and firms are changing the investment advisory industry where it matters most.


Learn More
February 24, 2025 - February 26, 2025
Las Vegas, NV

This conference aims to help insurers and litigators better manage complex claims and litigation.


Learn More

We are seeking two attorneys with a minimum of two to three years of experience to join our prominent and thriving education law practice in...


Apply Now ›

Description: Fox Rothschild has an opening in the New York office for a Real Estate Litigation Associate with three to six years of commerci...


Apply Now ›

Downtown NY property and casualty defense law firm seeks a Litigation Associate with 3+ years' experience to become a part of our team! You ...


Apply Now ›