Landlord Responsible for Tenant's Unlawful Short-Term Apartment Rentals

November 21, 2019

LVT Number: 330475

Landlord filed an Article 78 appeal of ECB's decision imposing penalties on landlord based on tenant's unauthorized short-term apartment rentals of two apartments through Airbnb. ECB had fined landlord $51,200, including per-day penalties. The court ruled against landlord for the most part. Landlord argued that it was denied due process because DOB summonses were directed only to landlord, rather than to tenants as the primary wrongdoers.

Landlord filed an Article 78 appeal of ECB's decision imposing penalties on landlord based on tenant's unauthorized short-term apartment rentals of two apartments through Airbnb. ECB had fined landlord $51,200, including per-day penalties. The court ruled against landlord for the most part. Landlord argued that it was denied due process because DOB summonses were directed only to landlord, rather than to tenants as the primary wrongdoers. Due process requires only that the government provide notice reasonably calculated to provide parties of the pending action and to give them a chance to present their objections. And the NYC Administrative Code mandates that a landlord be held responsible for the unknown and illegal acts of the tenant. The court did send the case back to OATH for a limited review of its decision to assess an additional penalty, since it was unexplained in the initial decision.

Thera Realty, LLC v. ECB: 2019 NY Slip Op 32917 (Sup. Ct. NY; 10/4/19; Crane, J)

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