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I know what I'm asking is not legal, but it also doesn't stop the 30,000+ not legal apartments that currently provide a home for families in Queens, NYC that would otherwise not be able to afford to live there.
I'm just trying to see, as a landlord, are there certain steps I can take to reduce any potential risks I could face for renting out the apartment? Should I have a lease agreement in place with the tenant? Is there certain verbiage I could include in the lease or another written document I should have in place? Etc.?
The building was built prior to 1938, so there is no certificate of occupancy issued; not sure if that helps me at all.
Ok, yes; so then there is no point in even having a signed lease agreement to rent out the basement apartment because in the end it wouldn't even be binding.
Is that true ? I thought even if it’s not a legal apartment they have to pay agreed upon rent eventually if court determined it? Or am I misinformed.
Can a Landlord Collect Rent for an Illegal Apartment?
The Court noted in its opinion that “no landlord-tenant relationship can exist where there is an illegal apartment.” The Court cited the case of Fazio v. Kelly, 2003 WL 22227363. Moreover and directly relating to the apartment rented to Ms. Acquino, the Court noted that “no owner...of any building shall permit any person to occupy a cellar as defined in Multiple Dwelling Law §4(37) for living purposes unless a permit has been issued...”
. The Court noted that there was no showing as to whether the apartment was in a cellar or a basement. In either event, a special permit is needed to make occupancy legal. Because the apartment was illegal, the Court noted that the “court will not enforce an illegal contract.”
The Court then decided that because of the illegal occupancy, the contract between the parties (the lease) is “unenforceable”. The Court referred to the Multiple Dwelling Law of the State of New York §302(1)(b) which provides “No rent shall be recovered by the owner of such premises for such period, and no action or special proceeding shall be maintained therefor, or for possession of said premises for nonpayment of such rent.”
Is that true ? I thought even if it’s not a legal apartment they have to pay agreed upon rent eventually if court determined it? Or am I misinformed.
Few years ago there was at least one housing court case where LL sued for back rent (illegal apartment) and lost. That is he could not collect back rent owed because apartment was not legal.
It depends if apartment in question is part of "multi-family" housing or a room or unit that is part of one-family house.
There must be a way to do an extensive background check on potential tenant. I think there are "professional" renters who know the apartment is illegal and have a plan to move in and immediately stop paying rent. Maybe there's a way to check if they've done this before.
20 years ago I knew someone who rented an illegal basement apartment and when they got caught (don't know how, sorry) the tenant was on the street and the homeowners paid a $30k fine to the city.
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