Tenant Must Stop Short-Term Rentals While Eviction Case Is Pending

Landlord sued to eject rent-controlled tenant for renting out rooms in her apartment via Airbnb to tourists and others for short-term stays. Landlord asked the court to issue a temporary injunction against tenant while the case was pending. The court ruled for landlord. Landlord claimed that tenant's actions were a substantial and incurable violation of her tenancy and obligations under rent control. Tenant advertised and rented three of the four bedrooms in the apartment on a continuous basis since at least February 2012. More than 110 guests had rented rooms for stays ranging from three days to three weeks. From January 2014 through September 2014, tenant earned more than $6,500 per month, which was far in excess of her monthly legal rent of $4,477. In addition, tenant paid only $4,193 because she received SCRIE benefits.

The court agreed that this was profiteering and fraud against landlord. The court stated that tenant's rentals probably violated not only the Rent Control Law but also the Multiple Dwelling Law (MDL). The court disagreed with tenant's claim that there was no MDL violation because she continued to reside in the apartment while renting rooms to other occupants for stays of less than 30 days. The case was adjourned to February 2015 for a hearing on whether to continue the injunction against further rentals by tenant pending a ruling on whether tenant could be evicted.

Brookford, LLC v. Penraat: 2014 NY Slip Op 24399, 2014 WL 7201736 (Sup Ct. NY; 12/19/14; Edmead, J)