I was in NYC with my team this past Jan, trying to raise money with a few angels in the area. The three of us decided to rent a furnished apartment to save money. I was pleasantly surprised by the amount of space this decision afforded. There was plenty of desk space in the unit and while there weren't enough beds for each of us the couches made due just fine.
The landlord explained that they were having trouble leasing the apartment, and that they were falling back on relying on this sort of rental to help cover the cost of the space. It's a shame this won't be an option in the future, both for poor entrepreneurs and landlords.
Another anecdote: I moved to the city in late March. Since then, I've been in five sublets while I looked for a suitable permanent place to live. (Moving in tomorrow!)
One of those sublets would have been legal under this new law.
The first was a vacation rental business, very well run by the owner of the building. I stayed there two months, so it wouldn't fall under this rule, but I was the exception: most of his business would.
Another was a young professional who rented out her tiny one-bedroom in the East Village to help pay for her vacation.
A third was a friend of mine who was out of the country for a few weeks. A win-win situation, I paid her rent and got a place to live.
The fourth was a room in a shared loft with three roommates. The guy renting the room was a photographer who spent the two weeks in Haiti documenting the recovery. The rent money helped fund his trip.
The fifth, the one I'm in right now, was another friend's place. She moved out at the first of the month (due to the availability of her new apartment and her new roommates' schedules) but was obligated to pay the rent through the end of the month. Again, win-win. I help with her rent and have a place to live.
Tomorrow, I move into an apartment of my own. There is a specific no-subletting clause in the contract, and I'll honor that. But I wouldn't have made it moving to the city if this law had been in effect four months ago.
The landlord explained that they were having trouble leasing the apartment, and that they were falling back on relying on this sort of rental to help cover the cost of the space. It's a shame this won't be an option in the future, both for poor entrepreneurs and landlords.