Ah okay. I'm from Germany, where we have rent control everywhere.

But I also know a guy from NY who rented a flat for a few hundred bucks decades ago and now subrents it to other people for thousands.

What he is doing is probably illegal then (if he’s rent controlled). You can’t profit like that.

Gotta say I always found this incredible. Rent control is so stupid that even it has to put rules on not being used.

Who is being harmed by a rent-controllee sub-leasing? Literally no one. Because the harm to the owner is already made in the form of rent control.

> Who is being harmed by a rent-controllee sub-leasing? Literally no one.

The owner is harmed, because otherwise they could have gotten a new tenant and raised the rent back up to market rate.

Only if the tenant leaved. If leaving loses the rent-control, the tenant will stay. The price is well below market rate, then they wouldnt even get roomates, harming the entire rental market on both ends: by removing profits from the owner and decreasing supply.

If rent-control didn't have the restriction, then it wouldnt make a dent into rent prices, but it would clearly show that it is a mere transfer from the owner to the rent-controllee.

If its NYC it is indeed illegal and without a doubt unethical. You are only allowed to pass rent-controlled apartments to family members and those family members must liver there two years prior to transitioning the lease to them.