Landlord Fined $47,000 for Illegal Short-Term Rentals

DOB issued four violation notices to landlord for renting Class "A" apartments for transient use, and for failing to provide proper egress and a fire alarm system for a building used for transient occupancy. DOB's inspector testified that he observed rooms on different floors that had been converted to SROs with individual key-locking devices and shared common bathrooms and kitchens. He spoke to several occupants, who were visitors from other countries. The visitors told him that they had reserved the rooms for short-term stays through Airbnb and Roomarama websites. DOB produced photographs of occupant receipts and website printouts to back up its claim. Landlord claimed that the individual who set up the transient rentals was a tenant and that it had no knowledge of this practice. The ALJ didn't credit landlord's claim and imposed per-day penalties totalling over $47,000. Landlord appealed and lost. Landlord argued that the per-day penalties were excessive. But, although the short-term rentals ceased immediately after the violation was issued, the key-locking devices and room partitions were not removed within 45 days. [Click here to download a PDF of the decision.]

347 Lorimer LLC: ECB App. No. 1400672 (9/18/14) [4-pg. doc.]