Suing for Illegal Short-Term Rentals in New York

While there are many reasons for real estate litigation in New York today, a prevalent issue involves short-term rentals. Various jurisdictions in New York have strict rules against short-term rentals, and this can cause concerns for investors, landlords, and event REITs. Several real estate lawsuits in New York have shed light on this issue. What can you do in the event of a real estate lawsuit involving short-term rentals?

Numerous Short-Term Rental Lawsuits Announced in New York

In the last few months and years, there have been numerous real estate lawsuits in New York involving short-term rentals. In July of 2024, the Office of Special Enforcement in New York announced a plan to permanently shut down a short-term rental organization accused of illegal conduct. The company is alleged to have operated illegal short-term rentals in 58 buildings across Manhattan. Authorities say that it generated millions over the course of three years. 

Online booking companies were forced to hand over records to assist with the investigation, and these records clearly showed that they were breaching New York laws against short-term rentals. Prosecutors allege that even after being served “cease and desist” letters, the people running the company continued to book illegal short-term rentals. For reference, the City of New York and the State of New York require property owners to rent out their properties for at least one month at a time. 

Earlier in 2024, another short-term rental company was ordered to pay $1.2 million to settle claims related to short-term rentals. The company allegedly operated more than 70 short-term rental units across Manhattan and Brooklyn, earning more than $4 million over the course of about three years. This same company faced numerous additional lawsuits in New York for lease violations and unpaid rent. 

Is New York’s Stance Against Airbnb Working?

New York’s strict stance against Airbnb has been met with mixed reactions. Many individuals in New York were running legitimate and successful real estate businesses prior to these developments – businesses that are now impossible to run legally. Critics also say that the lack of Airbnbs in the city has made hotels much more expensive. The goal is obviously to expand the rental market, but it is not clear whether this has actually been achieved. Prior to the new rules against Airbnbs, there were only about 2,500 short-term rentals in New York City. 

What Should I Do if I am Being Sued for Running an Airbnb in New York?

If you are being sued for running an illegal short-term rental in New York, it might be worth getting in touch with an experienced real estate litigation lawyer. These legal professionals can help you strive for positive results and potentially limit financial consequences. 

Find an Experienced Real Estate Litigation Lawyer in New York

If you are facing a real estate lawsuit in New York, contact The Glassman Law Group at your earliest convenience. We have considerable experience with real estate litigation in New York, and we can guide you toward positive outcomes. Reach out today to get started with an effective action plan.