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NYC claims more than 25% of Airbnb hosts are flouting short-term rental laws

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More than a quarter of Airbnb hosts are flouting the city’s strict short-term rental laws — including one Brooklyn landlord who allegedly advertised spaces with phony profiles of glamorous-looking young women, The Post has learned. 

Over the past 11 months, 605 registered hosts were sent warning letters from NYC’s Office of Special Enforcement about their illegal activities, including renting out entire apartments for less than 30 days and hosting more than two guests at a time, according to OSE.

In March, OSE conducted a review of approved listings and found that 27% of the them are considered illegal, the agency said. 

A listing for a loft apartment is promoted by a long-haired blonde woman named “Ava” who is an interior designer and “passionate about creativity and fun,” according to the city’s lawsuit. But the unit was registered to Akiva Bineth, as seen in a photo from a government-issued ID, according to the suit. NYS Courts (Kings County Clerk’s Office)

Among them was Brooklyn-based property owner Chanaya Bineth, who allegedly racked up dozens of violations over three years for Airbnb listings that employed “fictitious profile images and names on Airbnb listings,” according to an OSE statement.

One listing displays a photo of an attractive young woman named “Avi” who speaks Danish and German and describes herself as a “design wizard by day and your Airbnb maven by night,” according to exhibits included in a lawsuit filed by the city on April 16 in New York State Supreme Court.

In fact, the apartment was registered to Moshe Katzburg – whose US passport is submitted as an exhibit in the lawsuit next to the “Avi” photo, displaying a male with a long, bushy beard glaring into the camera.

Another listing shows a picture of a smiling young couple, with the man calling himself “Chan” and the “brain behind the scenes at this beautiful space … find me pumping iron, jamming to beats & planning impromptu adventures with Alicia my girl.”

One listing displays a photo of an attractive young woman named “Avi.” As apartment was registered to Moshe Katzburg.

But the apartment is actually registered to building owner Chananya Bineth, whose company Unique Away, was responsible for the listings, according to the suit. Bineth enlisted at least six family members, associates and employees to help him obtain registrations for lofts and apartments in Brooklyn that he owns, according to the complaint.

A third listing for a loft apartment is promoted by a long-haired blonde woman named “Ava” who is an interior designer and “passionate about creativity and fun,” according to the city’s lawsuit. But the unit was registered to Akiva Bineth, another bearded male as seen in a photo from a government-issued ID, according to the suit.

Chananya Bineth, Moshe Katzburg and Akiva Bineth could not be reached for comment.

The buildings have raked in more than $1.3 million in ill-gotten revenues, the city claims. OSE has issued $47,000 in fines to Bineth after the city received seven complaints to the 311 system about the “unlawful conduct.” 

Chananya Bineth, who registered an Airbnb apartment with the city, presented this fictious couple as the Airbnb hosts, according to a lawsuit filed by NYC. NYS Courts (Kings County Clerk’s Office)

Bineth and his family “submitted fraudulent documents to OSE claiming [they] were full-time tenants in the buildings – at 8658 16th Ave. in Bath Beach, Brooklyn; and at 114 Wilson Ave. in Bushwick – in order to obtain six registrations to host illegal short-term rentals,” according to the complaint. 

The city requires government issued IDs to register as a host under a three year-old regulation known as Local Law 18. The photos of smiling, attractive women who are neither the owners or operators of the units qualifies as “deceptive conduct” against consumers, according to the complaint.

“Unique Away’s goal was always to provide responsive, professional communication — not to mislead guests,” the company said in a statement to The Post. “This is reflected in guest reviews and consistently strong ratings, which demonstrate that guests received the high level of service they expected at these properties.

This building in Bath Beach Brooklyn is one of the illegal Airbnb rentals that Chananya Bineth owns, according to the city’s lawsuit.

The focus on profile pictures and bios of the hosts for these properties has created a misleading narrative that distracts from the actual fundamental issue at play, which is that at all times, guests of these properties were communicating with real members of the Unique Away team who were dedicated to providing each guest the highest level of satisfaction possible.”

Unique Away declined to comment further.

The city alleges that as soon as Bineth and company received registrations for the properties they “immediately changed their online advertisements on Airbnb.com from offering legal, hosted stays for a maximum of two guests, to illegal entire-unit stays for more than two guests,” according to the complaint.

The city alleges that as soon as Bineth and company received registrations for the properties they “immediately changed their online advertisements on Airbnb.com from offering legal, hosted stays for a maximum of two guests, to illegal entire-unit stays for more than two guests.” NYS Courts (Kings County clerks Office)

“We’re ensuring people who lie to get approved or begin violating the rules after they’re registered are held accountable — protecting a fair marketplace for hosts who follow the rules,” said OSE executive director Christian Klossner, said in a statement.

Bineth and his family and friends are facing damages of $1 million and a $1,000 penalty for each day they rented the properties out.

Airbnb is not named in the complaint or liable for the actions of its hosts.

“The city has not communicated with Airbnb over this issue of warning letters or illegal stays,” Nathan Rotman, director of public policy and strategy for Airbnb, told The Post. 

Unique Away advertised entire units that could accommodate four guests, according to this photo that the city included in its lawsuit.

The company periodically sends out reminders to hosts in NYC, including one that was shared with The Post stating: “Changing your listing description after being approved by the OSE may result in the city determining that your listing does not comply with Local Law 18.”

The short-term rental rule went into effect in September 2023. It requires hosts to register with the city and to certify that their homes meet rigorous building, zoning and other codes. It has dramatically reduced Airbnb’s business here by enforcing existing rules that require hosts to rent out their primary residence — and be present during a stay — and not to exceed more than two guests at a time.

Klossner added that “the overwhelming majority of hosts are following the rules.”

[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]

Tags: airbnbBrooklynBusinesslawsuitsMetroregulation
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