Unauthorized Sublet Wasn't Illusory Tenancy

Landlord sued to evict illegal subtenant from a rent-stabilized apartment. Subtenant claimed that he should be allowed to stay and be granted a lease because of an illusory tenancy. The court ruled for landlord. Subtenant appealed and lost. Tenant lived in the apartment for nearly 20 years before subletting it without permission. She had moved back into the apartment at the end of an earlier sublet and before subtenant moved in. Tenant also paid rent directly to landlord at all times and didn’t engage in profiteering, since tenant rented the apartment to subtenant at the legal regulated rent. Since there was no showing that tenant improperly profited by violating the rent regulations, there was no illusory tenancy. Even if tenant may have been hoping to hold on to the apartment in the event of a co-op conversion, this wasn’t enough to find illusory tenancy.

333 East 49th Partners, LP v. Siebert: NYLJ, 4/20/09, p. 27, col. 2 (App. T. 1 Dept.; McKeon, PJ, Heitler, J)