Illegal Basement Apartment: No Lease, No Rights, No More Mr. Nice Landlord
(post by BT) Two weeks ago a neighbor near my office came in and asked if I can give him some advice about his “situation”. His landlord is selling the house he’s renting and he has to get out. His concern was that the owner wanted him out within 3 weeks and he did not think he would find a place so quickly. “What rights do I have”, he asks? “Can he just throw me into the street?” I try to answer his questions, but tell him that I am not an attorney, just a Realtor. “I can’t give you legal advice”, I explain. But, Okay, let me listen. First, he claims that the owner wants him out because he needs to renovate to get the money he wants. After more probing, I conclude the owner wants him out because he is paying below-market rent, plus he is not letting Realtors show his apt to buyers.
Today, he comes into my office and says that the owner told him he sold the house to all-cash buyer/investor who needs him out in 2 weeks. Now the guy is really worried about his future. “What do I do? Will the new owners just kick me out?” I can smell a lie. No sale took place. The buyer has never seen his apt, right? And he forgot to mention originally that he lives in an illegal basement apt! I am thinking, poor tenant. He had a good deal going and now he is worried the new owner will throw him out on the street. The landlord’s realtor is rushing the sale, landlord does not want risk losing cash buyer.
This happens. Owner has an illegal basement tenant and now when he’s selling he’s just treating him like an unwanted dog. “He was such a nice landlord before.” Nice tenants get nasty landlords (and vice versa!) Sure, he is paying below market rent but that is what you pay for an illegal pad – both parties win! Owner gets some income he technically should not get, and rents to someone nice and quiet to keep neighbors from reporting to the city. Tenant gets to pay less for living in a place he has no tenant rights. But when selling, the tenant has to go. No lease, he officially never lived there – seems easy to kick out. Now he asks for 1 month to find a new place. Owner says no! This guy doesn’t want any money, does not threaten court - all he wants is 1 more month. This landlord is playing with fire – illegal eviction from an illegal apartment the owner created in his basement. Ignorant hard-ass. Owner’s selling agent should exercise his fiduciary duty and educate this landlord about legal risks instead of worrying about waiting another month to be able to sell this house. What if an attorney for the tenant causes troubles by having city slap him with violations, work stop order or files a lawsuit?
So I figure I help him out, show him some apartments, not charge a fee…. But this guy is screwed…. After completing an application I noticed he left out his income. There is a reason — it’s $25K!!! In NYC, I can’t find him anything with this kind of income. And as a Realtor I can’t rent illegal basements, either. Looks like this guy is going into someone else’s basement.
In NYC, basically all basements are illegal dwellings. See the Illegal Basement rules from NYC DOB.