Wednesday, December 30, 2015

Midtown NYC Landlord Slams Tenant w/ $300K Lawsuit For Allegedly Illegally Peddling 'Short Stay' Sublets On Airbnb For $200/Night, Resulting In $60K+ Tab In City Fines For Landlord

In New York City, the New York Daily News reports (via The Real Deal - NYC):
  • That's one heckuva hotel tab.

    A Midtown landlord is suing a tenant for $300,000 for repeatedly renting out her apartment on Airbnb for $200 a night.

    In papers filed in Manhattan Supreme Court, 357 West 54th St. LLC says Madalina Iacob's bid to make some quick bucks on Airbnb and other short-term apartment rental sites has already cost the building over $60,000 in fines — and could wind up costing it four times as much.

    "Under the law, the landlord is strictly liable even though it's the tenant causing the violation — and even though we're not participating in this with this lady
    ," said the building's lawyer, Lawrence Silberman.

    Iacob's lease on the small $2095-a-month one-bedroom says that "tenant understands that they may NOT sublet the apartment" — but that's what the yoga instructor and self-described life coach and emotional intelligence coach was caught doing by the city in May, court papers say.

    As a result, the building was slammed with four violations by the city, including operating as an illegal hotel, not having the required amount of exits for a hotel and not having adequate fire alarm system for a hotel.

    All of the tenants denied to building management that they were the illegal renters, but staff wound up catching Iacob red-handed, Silberman said. [more]