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Ari Teman, SubletSpy Founder: What you CAN and CAN’T do about illegal sublets (Airbnb, etc.) in your buildings

18.05.2019
4 min read
Ari Teman, SubletSpy Founder: What you CAN and CAN’T do about illegal sublets (Airbnb, etc.) in your buildings

Helpful tips from SubletSpy founder Ari Teman:

Illegal sublets from sites like Airbnb are becoming a major issue for hundreds of landlords. Every day we at SubletSpy — we monitor thosuands of units for over 50 landlords across NYC & LA — hear from landlords who are overwhelmed by the headache: complaints from tenants, $10,000 city fines, bedbugs, package theft, building damage, drugs & smoking indoors, etc. It’s a huge liability and you must get rid of it & prevent it, before it becomes an expensive nightmare.

DOs:

Document everything
Keep paper and electronic records of all communication with tenants, management, “guests”, and anything you do regarding illegal sublets. Use certified mail, courier, or even a process server to document any mailings. These may help you avoid city fines and evict bad-actors.

If you suspect a tenant, get proof:

The word of your super or staff is often not enough in court. Many judges won’t believe them. You need proof, such as a SubletSpy report and the Airbnb or VRBO listings. You can use PIs or camera systems but these are very expensive and take months instead of days.

Ask the tenant to leave. If they refuse, file to evict immediately.

Subletting an apartment for under 30-days is an “incurable offense” in NYC, so the tenant is evictable. They don’t get a second chance, and no “cure” period.

You can explain to the tenant that you’ll give them X days to have their things out or that you’ll file a case in Housing Court (that will remain on their record for years and prevent them from leasing elsewhere). Most will agree to leave, so both of you avoid the legal fees. You may want to have an attorney draft this letter for you.

If you ask the tenant to stop…

Perhaps you have a free market tenant you like and don’t want to evict: Most tenants will agree to stop subletting, but many lie and post under another name! SubletSpy just showed a “nice” tenant lied to his landlord’s face about stopping and was still hosting heavy Airbnb traffic. If you ask them to stop, monitor them!

Add heavy fines to your lease agreements & house rules

Insurance will often try to deny covering damage from illegal hotels in your building, so you want to put this financial burden on the tenant. You also want to make it not worth their while by instituting huge fines (think thousands, not hundreds) per illegal sublet. Ensure they’ve agreed in any lease to also pay all city fines, cleanup, legal fees, and to forfeit their full security deposit. Ask a lawyer for advice on this.

Change the locks

If your tenant gave your building keys to strangers, your building is now at risk of thefts and assaults. Change the locks on the front door and unit. (Don’t illegally prevent access, though!)

Monitor your building

SubletSpy will monitor your buildings for illegal sublets on sites like Airbnb, VRBO, etc. from just $1/month.

Ask a good attorney

Don’t act without ensuring it’s legal and proper or you risk illegal eviction and other claims.

DON’Ts:

Do not evict illegally or harass the tenant

You still have to use the legal system (court) if the tenant refuses to leave when you ask. Use a lawyer.

Do not use an attorney with no experience with Airbnb

We have 50+ landlords as clients and can see some attorneys getting their tenants out in weeks while others burn tens of thousands of dollars and months. Don’t waste your money. Ask around and find someone who’s gotten the job done repeatedly and quickly.

Do not ignore the issue

We hear from landlords who ignored the issue and now have $45,000 in bedbug issues, $100,000+ in DOB fines, etc. Act fast to avoid these fines & expenses!

Do not wait

A single NYC fine for an illegal sublet is $10,000 to YOU, the landlord, plus you risk bedbugs, thefts, and assaults of your tenants, for with YOU may be held liable, so act now to get rid of illegal sublets.

SubletSpy can help catch and remove illegal Airbnb in days, not months!

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