Tenant Evicted for Overcharging Illegal Subtenants

Facts: Rent-stabilized tenant sublet his apartment to a series of short-term subtenants, in many cases through a bed and breakfast agency. Landlord became aware of this when one of the subtenants filed a rent overcharge complaint with the DHCR and the DHCR served a copy of the complaint on landlord. Tenant's monthly rent was $2,300; he'd charged subtenant $2,850. Landlord sued to evict tenant for illegal subletting. Tenant claimed that subtenants were roommates, that he needed money due to financial hardship, and that he provided cleaning and laundry services to subtenants, so he didn't think there was any overcharge. Tenant claimed he should be allowed to cure; the last subtenant had moved out. Court: Landlord wins. Tenant had never sought landlord's permission to sublet. He charged as much as $300 a day for short-term boarders. Tenant continued this practice after subtenant complained of rent overcharge, and even after landlord sued to evict. Tenant was an attorney; he should have known the law. Tenant had clearly engaged in a profiteering scheme. So, he had no right to cure.

Regency Joint Venture v. Pearson: NYLJ, p. 22, col. 6 (2/2/94) (Civ. Ct. NY; Rodriguez, J)