OCT 10, 2024
In the world of NYC real estate, navigating landlord-tenant relationships can be a challenge—especially when you throw in situations like illegal basements. As a real estate broker and investor working with many first-time homeowners and landlords, I’ve come across my fair share of tricky situations involving illegal units.
One question that often arises is whether a landlord can evict a tenant if someone is living in an illegal basement. The short answer: it depends.
Basements are considered illegal for dwelling purposes if they don't meet NYC's stringent safety and housing regulations, which are often tied to the Certificate of Occupancy (C of O). This certificate, issued by the Department of Buildings, specifies what each part of the property can legally be used for. In many cases, basements are designated for storage or utility use, not for living spaces. Renting out such a space can create an illegal occupancy.
If a tenant is living in a legal unit, such as the second floor of a two-family house, but there’s someone living illegally in the basement, the landlord may still bring a holdover action to evict the tenant. A holdover case is typically pursued when the landlord is seeking possession of the unit, often when there is no lease or the tenant has breached the lease in some way.
However, there’s a catch: The landlord cannot request a money judgment (such as for unpaid rent) if there’s someone living in an illegal basement. This makes things a little more complicated, but it doesn’t prevent the landlord from reclaiming the property itself.
For landlords in this position, it’s crucial to proceed carefully. Make sure not to include any requests for money judgments in the court papers to avoid potential legal setbacks. For tenants, if the landlord is attempting to collect rent while there’s someone living in an illegal space, you may have grounds to challenge the eviction.
Evictions can be tricky business, especially when illegal units are involved. But whether you’re a landlord or a tenant, understanding the rules of engagement can save a lot of headaches. If you’re unsure of your rights or the legality of the space, always consult with a real estate attorney or a qualified broker. After all, protecting your investment or your home should always be the top priority.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
