Landlord Fined $40,000 for Permitting Short-Term Rentals

DOB issued 12 violation notices to landlord based on transient occupancy of Class “A” apartments in two of landlord’s adjoining buildings. DOB’s inspector testified that he spoke to apartment occupants who said there were staying in the apartments for no more than a week. Most were from foreign countries and had booked their stays through Trip Advisor or Airbnb. They showed the inspector documentation of their bookings. The apartments in question all were leased to one person for a term of five months. Landlord claimed that it was unaware of the short-term rentals. The violations were corrected before the first hearing date. The ALJ found that lack of knowledge was no defense and fined landlord $40,275.

Landlord appealed and lost. Landlord’s ignorance of the violations was no defense. Landlord was responsible for maintaining the building in a safe and code-compliant manner. Landlord also claimed that the fines imposed were excessive and violated the Eighth Amendment of the U.S. Constitution. ECB wasn’t authorized to determine constitutional claims. And the fines imposed all were within the range of penalties authorized by statute. Some of the violations were for immediately hazardous conditions such as failure to provide fire alarm systems, egress, and sprinkler systems for transient use, as well as daily penalties. [For PDF of original decision, click here.]

J.J.N.K. Corp.: ECB App. No. 1500708 (9/25/15) [6-pg. doc.]