NYC Targets Landlord in Alleged Airbnb Rental Scheme

As short-term rental owners bemoan New York City’s restrictions ahead of the World Cup this summer, officials are going after one landlord who allegedly ran afoul of the rules.

Championed by the NYC Mayor’s Office for Special Enforcement, the city filed a lawsuit against Chananya Bineth and his associates, amNY reported. The group, including Bineth’s family members, allegedly scored more than $1.3 million from its scheme in the last three years.

Beginning in April 2023, Bineth and his associates allegedly hosted nearly 1,400 short-term stays including two Brooklyn properties at 8658 16th Avenue in Bath Beach and 114 Wilson Avenue in Bushwick (a third Bronx property was excluded from the lawsuit).

Bineth and his team allegedly got licenses for short-term rentals at the two named properties under the claim they were full-time tenants at the properties. They then altered listings on Airbnb and a separate website to advertise entire units without a host present and/or occupancy exceeding a two-guest limit, according to the lawsuit, both of which violate city law.

The defendants also allegedly used fake names and profile images on Airbnb. When OSE inspectors arrived at the rentals — and were able to get in — they said they found the buildings illegally split into multiple units without necessary fire safety measures, resulting in 35 summonses for violations and nearly $50,000 in fines levied.

In a statement, Mayor Zohran Mamdani framed the lawsuit as part of a broader effort to keep the city’s housing stock “accessible, safe and affordable for all.” The defendants did not respond to a request for comment.

The OSE is seeking $1 million in punitive damages, plus the accrual of years worth of $1,000 daily fines, which could add up to roughly $5 million. The city also wants to shut down the rentals and has already filed an injunction against Bineth.

The lawsuit comes against the backdrop of the continuing fight over short-term rental restrictions in the city.

Last month, New York City’s City Council committee chairs blocked a proposal to temporarily suspend short-term rental regulations ahead of the World Cup.

Opponents of the suspension, including the mayor’s administration, argued that lifting the restrictions would undermine housing stability and raise housing costs for New Yorkers.

Critics of the decision, such as the Partnership for New York City, warned the move was “short-sighted” and will send potential investment to New Jersey.

— Holden Walter-Warner