April 21, 2014

New York's Undercover Apartment Detective

April 21, 2014

New York's Undercover Apartment Detective

Just when you thought you heard the end of it with the recent laws surrounding the online short term vacation rental market in NYC, this.

A guy named Claude O'shea is making calls and appointments to people who have their apartments listed on sites like Airbnb and Craigslist.  But he's not interested in actually renting. Nope. Mr. O'shea is only interested in seeing who you are, where you live and that you are actually renting out your unit.  

After scheduling a visit, and with a concealed camera on his person, he tours the prospective unit, capturing the unit and the lessor on camera, confirming such details like there's a 'no-lease-agreement' should he move forward with the rental.  Once he's confirmed that fact, (an illegal sublease agreement arrangement is underway or pending), O'shea excuses himself ("I have to think about it") and then contacts the building landlord/owner.  In exchange for a fee, obviously, O'shea then dangles the ol' 'I have something you want to know' carrot.  Once the landlord/owner agrees to O'sheas fee, he spills the beans. 

O'shea explains in a NY Post interview that he does this to rid these properties of tenants who are illegally profiting (e.g., sometimes they have a low rent controlled unit they've maintained for some time while living somewhere else in the city). Like what happened to a University professor and a rabbi.  

But the reality is, that in today's rent-controlled cities (SF & NYC), there's big money in raising rents for these landlords. If they can find out who's violating the sublease language of their lease agreements, then out goes contract-breaching-tenant #1, and in comes the next guy who will have to pay 2x? 3x? 4x? the previously charged rental rate. In a city with a shortage of viable apartments (low supply), and overwhelming demand, the prices can be staggeringly higher for these landlords.  

Be careful out there. O'shea, a former homicide detective is on the loose.