Landlord Can Evict Tenant for Short-Term Sublet Profiteering

June 24, 2017

LVT Number: #27728

Landlord sued rent-stabilized tenant, seeking ejectment and claiming that tenant's rent-stabilized lease was validly terminated due to tenant's subletting and profiteering. Both sides sought a ruling without a trial. The court ruled against them. Both appealed, and the appeals court ruled for landlord. Tenant engaged in substantial profiteering, and there was no proof that landlord knew about or consented to tenant's activity. Landlord was entitled to terminate the lease.

Landlord sued rent-stabilized tenant, seeking ejectment and claiming that tenant's rent-stabilized lease was validly terminated due to tenant's subletting and profiteering. Both sides sought a ruling without a trial. The court ruled against them. Both appealed, and the appeals court ruled for landlord. Tenant engaged in substantial profiteering, and there was no proof that landlord knew about or consented to tenant's activity. Landlord was entitled to terminate the lease. Tenant sublet her apartment to 93 different customers recruited through the Airbnb website for 338 days over 18 months. Tenant charged $95 - $120 per night while her rent equaled $58 per night.

Goldstein v. Lipetz: 2017 NY Slip Op 04070, 2017 WL 2231163 (App. Div. 1 Dept.; 5/23/17; Tom, JP, Friedman, Richter, Kapnick, Gesmer [dissenting], JJ)

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