My Tenant Is Running an Illegal Airbnb: A NYC Owner’s Guide
You rented out your apartment — and found out your tenant has been quietly running it as an Airbnb. Then a complaint gets filed, a violation lands on your door, and somehow the city is looking at you. Here is what is actually happening, and the real path forward.
The same situation, in one owner’s words
A NYC building owner found out his tenant had been running the apartment as a secret Airbnb — the lease he thought protected him, the violation that landed anyway, and the call that finally gave him a plan. It may sound a lot like your week.
First, what actually happened
In most NYC buildings, renting a dwelling unit for fewer than 30 days — while the permanent occupant is not there — is an illegal transient use under the Multiple Dwelling Law. When your tenant lists the unit for short stays, that is the law being broken inside your building. The booking platform collects the money. Your tenant runs the side hustle. But the city’s paperwork has a different name on it: yours.
Why the city comes after the owner
This is the part that blindsides good landlords. The City cites the property and its owner of record — not the person who posted the listing, and not Airbnb. A violation for illegal transient use runs against the building. So even with a signed lease that bans subletting and short-term rentals, the summons, the penalty, and the mark on the property record land on you.
The good news: the same facts that feel unfair — your lease banning short-term rentals, the dated listing history, your demands that the tenant stop — are exactly what build your defense and your case to get the unit back. They only help if you preserve them early.
You are usually fighting on two fronts
1. The city violation
An OSE notice or a DOB/OATH summons for illegal short-term rental or transient use. It carries a fixed response deadline and a penalty that often runs into the thousands. This is decided at OATH, the city’s hearings tribunal — where a cure credit or a procedural defense can reduce or vacate it.
Fighting an OATH short-term-rental violation →
2. The tenant
Stopping the listings and, where warranted, ending the tenancy. The lawful route is a holdover proceeding in Housing Court — never self-help. Done right, it also lets you pursue use-and-occupancy for the time the unit was misused.
Removing a tenant who runs an illegal Airbnb →Local Law 18 and the Office of Special Enforcement
Local Law 18 is New York City’s Short-Term Rental Registration Law. The Mayor’s Office of Special Enforcement (OSE) administers it, investigates illegal short-term rentals, and works with booking platforms to delist non-compliant units. Enforcement can reach the property owner, and the related violations are heard at OATH.
If your situation is squarely an OSE / Local Law 18 matter — a complaint, a delisting, or a registration problem — see our guide to OSE short-term-rental enforcement for owners.
What to do now
- 1
Document the listing now
Take dated screenshots of the listing, the reviews, and the booking calendar before they disappear. This is the core of your evidence on both fronts.
- 2
Do not accept the next rent check blindly
Accepting rent after you know about the breach can waive your right to bring a holdover. Talk to counsel before you deposit anything.
- 3
Send the right notice
A Notice to Cure or Notice to Terminate that cites the no-sublet / no-short-term-rental clause is what lawfully starts the end of the tenancy.
- 4
Respond to any city violation before the deadline
An OSE notice or OATH summons has a fixed response date. Meeting it — and showing you acted to stop the listing — is what protects the penalty outcome.
- 5
Recover the unit through the court, never self-help
Get the apartment back through a Housing Court holdover. Changing locks or removing belongings exposes you to serious liability.
The mistakes that make it worse
- Self-help. Changing the locks or removing belongings is illegal in NY and creates liability for you.
- Cashing the next rent check without thinking. It can waive your holdover rights.
- Letting the city deadline pass. A default at OATH locks in the maximum penalty and is far harder to undo.
- Deleting nothing, saving nothing. If the listing comes down before you screenshot it, you lose your best evidence.
Questions owners ask first
Why am I being fined when my tenant is the one who listed it?
Because the City cites the property and its owner of record, not the person who posted the listing or the platform that hosted it. When a unit is used for transient stays in violation of the law, the violation runs against the building and the owner — regardless of who took the bookings. That is exactly why your lease, the listing history, and the steps you took to stop it matter so much to the defense.
Can I evict a tenant for running an illegal Airbnb?
Usually yes. Most NYC leases prohibit subletting and short-term rentals, and using the unit for illegal transient occupancy is a substantial lease breach. The lawful path is a holdover proceeding in Housing Court, started by the correct predicate notice (a Notice to Cure or Notice to Terminate). You cannot use self-help — changing the locks or removing belongings is illegal and creates liability for you.
Can I just refuse the next rent check or change the locks?
No to the locks — self-help eviction is illegal in New York. And be careful with rent: accepting rent after you know about the breach can, in some cases, waive your right to bring a holdover. Before you deposit anything or take any action on your own, get the situation reviewed so you do not accidentally undercut your own case.
What is Local Law 18 and the Office of Special Enforcement?
Local Law 18 is New York City's Short-Term Rental Registration Law. The Mayor's Office of Special Enforcement (OSE) administers it and investigates illegal short-term rentals, working with booking platforms to remove non-compliant listings. Enforcement can reach the property owner, and related violations are heard at OATH. In most apartment buildings, renting a unit for fewer than 30 days when the permanent occupant is not present is illegal transient use under the Multiple Dwelling Law.
Can the OATH penalty be reduced even if the rental really happened?
Often, yes. Even where transient use occurred, many violations are eligible for a cure or for mitigation — ending the listing, correcting the condition, and certifying that correction can lead to a reduced or, in some cases, vacated penalty. Whether yours qualifies depends on the class and code on the summons, which is why acting before the hearing date matters.
What evidence helps my case?
Documentation OATH and Housing Court credit: the lease clause barring subletting and short-term rentals, dated screenshots of the listing and its reviews, your written demands that the tenant stop, a clear timeline of what happened and when, and proof you acted to shut it down. You do not need to gather everything blindly — once your situation is reviewed, you will be told exactly what matters and what is not worth chasing.
About the author
Michael Nacmias, Esq. is a NYC attorney with over 20 years of experience handling landlord-tenant disputes, OATH hearings, and city-violation defense across all five boroughs. Nacmias Law Firm represents property owners facing the exact situation described here — a tenant’s short-term rental that became the owner’s problem.
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Legal Disclaimer: This article is general information, not legal advice, and does not create an attorney-client relationship. Every situation is different — consult an attorney about your specific facts. Attorney Advertising. Prior results do not guarantee a similar outcome.