How Airbnb Facilitates Profiteering In New York City

By Thomas Dickerson (June 5, 2017, 5:33 PM EDT) -- Does Airbnb facilitate some of its hosts to ignore housing statutes and regulations and engage in profiteering? Certainly, New York state's attorney general may have concluded as much when after a four year investigation he found in 2014 that 72 percent of Airbnb host units were illegal with commercial operators constituting 6 percent of the hosts and supplying 36 percent of the rentals[1]. And certainly Governor Cuomo may have concluded as much when he signed into law New York Multiple Dwelling Law Section 121 and New York City Administrative Code Section 27-287.1 [the 'Act'] which imposed substantial penalties for "advertising that promotes the use of dwelling units in a class A multiple dwelling for other than permanent residence purposes" seeking, inter alia, to make Airbnb vicariously liable for the illegal acts of its hosts and similar to legislation in other cities in the United States[2]. Now the courts have weighed in and may have reached the same conclusion in a decision sustaining an eviction of a tenant for "profiteering" and "[t]urning her rent-stabilized apartment into a single-unit tourist hotel (enabling tenant) to earn substantial profits (of) 72% ... from her subletting."...

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