Some landlords ask us why they should obtain a rental permit. Well, the following precedent legal case should give caution to any landlords renting to tenants without a rental permit on the South Fork of Long Island. The “Town of Southampton” covers a very wide sphere, including the Town of Sag Harbor and much further west than most people realize. And this tenant-landord legal precedent case applies to the entire jurisdiction. There are a lot of details in the Schwartz v. Torrenzano case, but the general summary is this: A Sag Harbor tenant won a lawsuit against her landlord because he failed to file for a rental permit and she won approximately $150,000.00 in back rent because the landlord did not technically have a legal right to receive rent without a permit.
Justice Thomas F. Whelan ruled that a town ordinance gave Schwartz legal grounds to bring a rent rebate claim. According to Justice Whelan, “without the threat of recoupment of rent, aside from the possibility of administrative enforcement, there is no incentive for a landlord to obtain a license, which is an overriding concern of the town.”
Sanchez & Polovetsky outlined key points: “Using the three-factor test for determining whether a private right of action exists set forth by the Court of Appeals in Sheehy v. Big Flats Community Day, Inc., 73 NY2d 629 (1989), Justice Whelan said he was required to decide “whether the plaintiff is one of the class for whose particular benefit the statute was enacted; whether recognition of a private right of action would promote the legislative purpose; and whether creation of such a right would be consistent with the legislative scheme.”” This case was decided on August 7, 2015 and the legal decision is published at this link at Justia Law. The rental address listed is 12 Right of Way, Sag Harbor, New York.
If you are a landlord already renting or thinking of renting out your dwelling in the Southampton Town district or any other South Fork area that requires a rental permit, we at SHI can assist you with obtaining your permit quickly and efficiently. We can provide everything from the measuring and drawing of the floor plan to the filing of all the paper work. Don’t take the risk, even if you have been getting away without a permit for years. Another factor is liability for harm. If God forbid someone’s family was burned in a fire in your home and you did not have a rental permit, you would probably not only be legally liable, but this would probably weigh on your conscience as well. Why take these kinds of risks unnecessarily. Call SHI today at 631.377.2046.
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