Landlord Held Responsible for Tenant's Airbnb Rentals

DOB issued five violation notices to landlord based on illegal conversion of a dwelling unit for transient occupancy, failing to maintain a code-compliant premises, and failing to install a fire alarm system. DOB also proposed per-day penalties. DOB's inspector said that he found guests staying at the building, who had booked short-term stays through Airbnb. Landlord argued that it didn't know about tenant's subletting activities. But the ALJ found that landlord was ultimately responsible and couldn't shift liability to the tenant. The ALJ imposed $7,000 in daily penalties, covering the date the violation was issued through the date of correction.

Landlord appealed and won, in part. A landlord "permits" the illegal activity in situations where it fails to monitor the activities in a building it owns and operates, even if it doesn't know a tenant is using the space illegally. But DOB didn't show that the transient use involved more than one dwelling unit, so two of the five violations were dismissed. 

Tawau, LLC: ECB App. No. 1900948 (9/26/19) [5-pg. doc.]