Subtenant of Illusory Tenant Becomes Rent Stabilized

LVT Number: #23054

Landlord sued to evict rent-stabilized tenant for illegal subletting. Subtenant claimed illusory tenancy and sought rent-stabilization status. The trial court ruled for subtenant. Tenant sublet the apartment in 2000, when she was already living in California. Tenant overcharged subtenant more than $25,000. Landlord also knew about the sublet and overcharge. It didn't matter that landlord didn't profit by the arrangement.

Landlord sued to evict rent-stabilized tenant for illegal subletting. Subtenant claimed illusory tenancy and sought rent-stabilization status. The trial court ruled for subtenant. Tenant sublet the apartment in 2000, when she was already living in California. Tenant overcharged subtenant more than $25,000. Landlord also knew about the sublet and overcharge. It didn't matter that landlord didn't profit by the arrangement. Because rent-stabilized tenant subleased the apartment for profit on a long-term basis, the tenancy was illusory and subtenant was entitled to rent-stabilization status.

55 W. 74th St. LLC v. Desurvire: Index No. 64125/10, NYLJ No. 1202475150056 (Civ. Ct. NY; 11/11/10; Schneider, J)