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They Do the Crime ' And It's on Your Dime

By Adam Leitman Bailey and Dov Treiman
March 17, 2011

Two state laws in New York make the illegality of a tenant's use of rented premises a matter of considerable concern to landlords. One empowers local prosecutors to bring eviction proceedings against both the illegally operating tenant and its landlord; the other makes the landlord as liable as the tenant for injuries inflicted on third parties by the illegal business the tenant is running. While the first law can be expensive to the tune of tens of thousands of dollars, there is no limit on what the other could cost the landlord, but it could readily be in the tens of millions of dollars.

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