Rent-Stabilized Tenant's Short-Term Sublets Didn't Amount to Profiteering

Landlord sued to evict rent-stabilized tenant for profiteering from short-term rentals of her apartment. The court ruled against landlord, finding that the nature and frequency of tenant's rentals didn't constitute commercialization of the apartment or profiteering. Landlord appealed and lost. Applying Rent Stabilization Code Section 2525.6(b), the lower court had determined that tenant's income for all the subletting amounted to $139 total even though tenant rented to 21 guests over an 18-month period. The lower court found this to be de minimis and insufficient to warrant forfeiture of the long-term tenancy. Tenant also stated that she stopped doing the short-term rentals once landlord sent a notice to cure. While the appeals court didn't condone tenant's action, it found that the evidence supported the court's ruling that the lease violation was curable.

261/271 Seaman Ave. LLC v. Jordaan: 65 Misc.3d 141(A), 2019 NY Slip Op 51714(U) (App. T. 1 Dept.; 10/24/19; Ling-Cohan, JP, Gonzalez, J)