Post by High Priestess on Nov 11, 2018 3:46:04 GMT
A tenant who ran an AIrbnb listing illegally, in violation of her rental contract, has been ordered to pay back her profit to her landlord, who did not allow tenants to sublet.
www.stuff.co.nz/national/108486178/tenant-to-give-landlord-airbnb-profits-after-running-secret-taupo-guesthouse
www.stuff.co.nz/national/108486178/tenant-to-give-landlord-airbnb-profits-after-running-secret-taupo-guesthouse
Hawthorne didn't live at the property. She paid $380 per week in rent, but offered it for $105 per night online and had let it for 261 days over 14 months to March 2018.
Hawthorne's tenancy agreement did not permit her to sublet the property.
However, she has only been ordered to pay back the net profits of her Airbnb operation – rather than the full revenue she gained from Airbnb guests.
At a hearing in May, Hawthorne did not deny she had sublet the Bird Area property.
However, she submitted $14,167 in rental costs and $3,000 in electricity and internet bills as the cost of running the Airbnb business.
Her lawyer asked that these costs be subtracted from the business's gross revenue of $27,445.
The hearing adjudicator, A Macpherson, said "tenants should not be a position whereby they retain profits derived from the commission of an unlawful act".
However, Macpherson said she could only impose similar penalties to comparable cases in the District Court and the Court of Appeal.
Consequently, she requested Hawthorne pay only the net profit of $10,278, as an account of profits.
In total, Hawthorne has been ordered to pay $13,311, including $2000 for compensation for "injury to feelings" and $950 in exemplary damages.
The tribunal order stated Hawthorne had acted "not in utter disregard" but more in "naive blindness".
Hawthorne's tenancy agreement did not permit her to sublet the property.
However, she has only been ordered to pay back the net profits of her Airbnb operation – rather than the full revenue she gained from Airbnb guests.
At a hearing in May, Hawthorne did not deny she had sublet the Bird Area property.
However, she submitted $14,167 in rental costs and $3,000 in electricity and internet bills as the cost of running the Airbnb business.
Her lawyer asked that these costs be subtracted from the business's gross revenue of $27,445.
The hearing adjudicator, A Macpherson, said "tenants should not be a position whereby they retain profits derived from the commission of an unlawful act".
However, Macpherson said she could only impose similar penalties to comparable cases in the District Court and the Court of Appeal.
Consequently, she requested Hawthorne pay only the net profit of $10,278, as an account of profits.
In total, Hawthorne has been ordered to pay $13,311, including $2000 for compensation for "injury to feelings" and $950 in exemplary damages.
The tribunal order stated Hawthorne had acted "not in utter disregard" but more in "naive blindness".