Landlord Can't Prove Loft Tenant Profiteered Through Short-Term Rentals

LVT Number: #28194

Landlord sued to eject rent-stabilized loft tenant based on illegal subletting of rooms in the loft through Airbnb to numerous individuals over a two-year period. Landlord asked the court to rule in its favor without a trial. The court ruled against landlord and granted tenant's request to dismiss the case. Landlord appealed and won in part, although the case remained dismissed.

Landlord sued to eject rent-stabilized loft tenant based on illegal subletting of rooms in the loft through Airbnb to numerous individuals over a two-year period. Landlord asked the court to rule in its favor without a trial. The court ruled against landlord and granted tenant's request to dismiss the case. Landlord appealed and won in part, although the case remained dismissed.

There was no reason for the lower court to dismiss the ejectment claim based on profiteering. But landlord offered no proof for its claims that tenant violated other aspects of law. Landlord claimed that occupancy of a Class A multiple dwelling for less than 30 days wasn't permitted. But the loft building wasn't a Class A multiple dwelling and no Certificate of Occupancy for a multiple dwelling had been issued. Also, landlord didn't present any admissible evidence that tenant illegally sublet the unit. Even if Airbnb printouts were considered, they don't provide a basis for determining that the nature and frequency of the rentals amounted to profiteering, which would warrant termination of tenant's lease without an opportunity to cure. Landlord also couldn't seek use and occupancy from tenant because it failed to bring the interim multiple dwelling into compliance with the Loft Law by obtaining a Certificate of Occupancy.

Aurora Associates LLC v. Hennen: 2018 NY Slip Op 00465, 2018 WL 542169 (App. Div. 1 Dept.; 1/25/18; Acosta, PJ, Renwick, Kapnick, Kahn, Kern, JJ)