New York couple evicted from apartment after it was listed on Airbnb

Henry Ikezi, 35, and his wife evicted from their Hell’s Kitchen apartment for violating city’s Rent Stabilization code after listing it on Airbnb
He pays two-thirds of the $9,000-plus market price
A listing was found by Ikezi on the rental site advertising it for $649 a night – triple of what he pays monthly in rent, or $18,172
On Airbnb, he wrote amenities included a private fitness club by Equinox, a heated indoor lap pool and full-size indoor basketball and volleyball courts
Judge said Ikezi cannot profit from renting the apartment – while getting a break on the rent
Ruling is likely to cause shivers for thousands of New Yorkers who advertise their rent-stabilized apartments on Airbnb

Myriah Towner For Dailymail.com

Published:
15:38 GMT, 20 February 2015

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Updated:
17:50 GMT, 20 February 2015

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A New York couple have been evicted from their rent-stabilized Manhattan penthouse after they advertised it on Airbnb for triple their $6,670-a-month rent.

Henry Ikezi, 35, his wife and child must move out of their two-bedroom apartment by February 28, or they will be forced out by a city marshal.

The decision comes under a Manhattan Housing Court judge’s ruling earlier this week – the first to evict a tenant under the city’s rent control code.

The court case is likely to send shivers through tens of thousands of New Yorkers who make extra cash by listing their rent-stabilized apartments on Airbnb and similar housing share sites.

Henry Ikezi (above), 35, had listed his discounted $6,670 a month Hell’s Kitchen penthouse on Airbnb for $649 a night. A Manhattan Housing Court judge ruled that tenants who live in rent-stabilized apartments cannot get a financial break, and then pocket money from tourists after listing their apartments online

Ikezi, his wife and child are expected to move out of their two-bedroom penthouse (above) located in the 450 W. 42nd Street apartments by February 28, or they will be forced out by a city marshal

The penthouse was rent stabilized, so Ikezi was paying two-thirds of the $9,000-plus market price

By law, a guest can stay temporarily as long as the permanent resident is living there for the duration of the stay. Ikezi said this was the case for him and his family while tourists shared the space with them

Ikezi’s Hell’s Kitchen penthouse located at 450 W 42nd Street is rent stabilized, so Ikezi was paying two-thirds of the $9,000-plus market price, according to the New York Post.

On Airbnb, Ikezi listed the corner unit for $649 a night, equaling $18,172 a month – nearly triple what he pays in rent, according to court documents.

The two-bedroom and two-bathroom penthouse offered guests access to the building’s amenities such as: a private fitness club by Equinox, a heated indoor lap pool, full-size indoor basketball and volleyball courts, terraces, outdoor and indoor screening rooms, an internet cafe and a Dog City pet spa.

The presiding judge, Justice Jack Stoller, claimed that Ikezi was benefiting from marked-down rent because the building’s developers had taken a tax exemption to offer some apartments at rent-stabilized prices.

Rent-stabilized apartments can only increase in price year-to-year by a small amount, which is set by the city.

Stoller ruled that as a result, Ikezi cannot sublet the penthouse triple the price of what he pays in rent to his landlord.

By law, a guest can stay temporarily as long as the permanent resident is living there for the duration of the stay.

Ikezi, who flips homes for a living according to the ruling, said this was the case for him and his family while tourists shared the space with them.

On the ad’s listing, he wrote: ‘I maintain an area in the unit at all times in accordance with state and city laws’.

However his landlord, Related companies, dismissed the claim as sources have said that Ikezi uses the penthouse as a way to pocket extra cash while he resides in a million-plus dollar home in Jamaica, Queens.

Ikezi told the presiding judge, Justice Stoller, that he could not remember whether he had ever charged guests to stay in the apartment.

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Sources have said that Ikezi uses the penthouse as a way to pocket extra cash while he resides in a million-plus dollar home in Jamaica, Queens

When confronted about his Airbnb listing that said the apartment featured ‘skyline views’, Ikezi said it could be a neighbor’s listing with similar decor

Justice Stoller claimed that Ikezi was benefiting from marked-down rent and cannot sublet the penthouse for triple of what he pays in rent to the landlord

Todd Nahins, the landlord’s lawyer, said his client is cracking down and will not tolerate tenants using their apartments as hotels

And when he was questioned about his Airbnb ad that said the penthouse featured ‘skyline views’ and was located in the ‘most happening neighborhood in Manhattan’ – he shrugged off the claim, suggesting it could be a neighbor’s listing with similar decor.

But Related’s lawyer, Todd Nahins, said neighbors complained about strangers who were coming in and out of the apartment.

He also said his client is cracking down and will not tolerate tenants using their apartments as hotels.

In Stoller’s 12-page ruling, he said: ‘Using a residential apartment as a hotel room and profiteering off of it is ground for eviction…as it undermines a purpose of the Rent Stabilization Code.’

The judge’s verdict exhibits that nearly all New York city residents are putting themselves at risk of eviction when they list their homes on home rental sites because they are violating the terms of their leases, according to New York state Senator Liz Krueger.

Airbnb, which makes a reported $40million from New York listings, is the real culprit she added, because it is not doing enough to set limits.

‘We advise all hosts to review their local rules before they share their space, and we believe we need smart limits on home sharing in rent-regulated apartments,’ said Airbnb spokesman Nick Papas.

Airbnb, which makes a reported $40million from New York listings, is the real culprit said Senator Liz Krueger, because they do not set enough limits (above, 450 W. 42nd Street apartments)