Illegal Sublet Fines: 139 Down, 24,000 To Go

The battle against illegal sublets is never-ending for many co-op and condo boards, though they have acquired some formidable allies, including a new state law that makes it illegal even to advertise short-term sublets. As part of a larger crackdown, the City of New York has just collected its first two $1,000 fines under the new law – one from a resident of Trump Tower, another from a co-op shareholder on the Lower East Side, Crain’s reports.

But that good news is quickly eclipsed by a sobering reality. Since the so-called “anti-Airbnb” law went into effect – after a big boost from the hotel industry’s lobbying group – the city has beefed up inspections, resulting in the issuing of fines on 139 listings. That, it turns out, is a spit in the ocean.

The number of potentially illegal Airbnb listings was 23,639 as of April, according to data from the company, though a portion of those ads could be for a stay in a single-family home or another type of dwelling exempt from the legislation. But based on current rates, it would take the Mayor's Office of Special Enforcement 43 years to run down those potential violations.

Rather than go after every one, City Hall's goal likely is to fine enough hosts to discourage the illegal listings and have the numbers come down on their own. Thus far, officials have focused on owners of multi-unit buildings who essentially run illegal hotels by renting out multiple apartments for short stays. The mayor plans to add inspectors.

Renting out an apartment for fewer than 30 days without the owner present has been illegal since 2010. The new state law against advertising short-term sublets is the New York way of saying, “Don’t even think about subletting that apartment for the weekend."