First Fines Issued Under New Anti-Airbnb Law

More than a million tourists pour into New York City every week. It just got a little tougher for them to find a cheap place to sleep.

A landlord and a real estate broker have become the first city residents fined under a new state law designed to curb illegal short-term rentals by Airbnb and other listing services, the New York Post reports. Property owner Hank Freid – once crowned one of NYC’s “Worst Landlords” by a watchdog group – and real estate broker Tatiana Cames were slapped with a total of 17 violations, at $1,000 apiece, for their allegedly illegal listings on Manhattan’s Upper West Side and in Brooklyn.

It’s illegal to sublet an apartment for less than 30 days if the owner is not present. A law passed in October made it illegal to advertise such sublets, and enforcement began at the beginning of February. A first offense carries a $1,000 fine, with second- and third-offense fines of $5,000 and $7,500. Cames, a licensed broker and contractor, manages an Airbnb listing at 103 St. James Place in Clinton Hill, Brooklyn, which has housed at least 179 guests, based on the number of reviews.

Co-op and condo boards have a variety of tools for dealing with illegal sublets, both short- and long-term. Long before enforcement of the new law began, many boards had begun waging year-round campaigns to sniff out illegal short-term sublets. Some boards have started using one of a burgeoning array of software offerings designed to comb listings and spot illegal sublets in their buildings.

According to City Hall, the fines to Freid and Cames are just the beginning. “We will continue to use this law, and other enforcement tools, to protect New Yorkers and visitors alike” from “bad actors,” says mayoral spokeswoman Melissa Grace.