Landlord Can Evict Loft Tenant Who Overcharges Subtenant

Facts:Loft tenant illegally sublet a large portion of his loft to subtenant. Tenant divided the space and installed separate entrances. Each space had its own bathroom and kitchen. At some point, subtenant sued tenant for rent overcharge. That case was settled, and possession was awarded to tenant. In the meantime, landlord sued to evict tenant for illegal subletting and rent gouging. Tenant claimed that subtenant had moved out and that shared occupancy of tenant's loft was permitted under RPL section 235-f. Tenant also claimed that there was no Loft Law provision allowing landlord to evict him for overcharging a subtenant. The court ruled for tenant, and landlord appealed. Court:Landlord wins. Although only the rent stabilization regulations have a provision barring rent overcharge of subtenants by tenants, this rule has been extended by courts to rent-controlled tenants and should also be extended to loft tenants. Here, tenant clearly was profiteering. Tenant charged subtenant more than triple the legal rent for four years.

BLF Realty Holding Corp. v. Kasher: NYLJ, 9/26/02, p. 18, col. 1 (App. Div.1 Dept.; Williams, PJ, Saxe, Buckley, Sullivan, Ellerin, JJ)