Smart Apartments, run by Robert "Toshi" Chan, has just settled with New York City in the lawsuit filed against the short-term lease company. Smart Apartments managed over 200 units in Brooklyn, Manhattan, and Queens, all illegal due to their short-term nature. NYC had passed a law preventing most apartment rentals that had a duration under a thirty day span.
Smart Apartments got its start on Airbnb to rent out their apartments, often in buildings that smaller landlords had redesigned to suit these illegal short-term rentals, but had moved out to advertise beyond it. Until NYC shut them down, they had their own website and had taken to advertising on sites that catered towards foreign visitors and tourists.
The city claims that these rentals have the possibility of being dangerous to both the unsuspecting renter and the neighbors that surround the unit.
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