Isn't that already specified in the terms of the lease?
Isn’t what already specified in the lease? Can’t sublet? Yes, but it’s impossible to enforce. It’s not like the landlords are going to help enforce it — they’re not going to get paid any more than the government-decreed rental rate no matter what, and when tenants are having trouble making the rent payments (like now), it’s actually beneficial to the landlords to let this sort of arrangement proceed undisturbed.
When there’s an active, public market in “no-tel” rentals, it obviously greatly increases the amount of this going on, and the profitability. Easier to outlaw it completely.
Better yet, get rid of all the unConstitutional rent control laws, and let private property owners set their own rules re sublets. But of course, that’s far too radical a proposal for the NYC government to consider. Only tweaks to the socialist system are open for consideration.
On a related note, there’s also quite of bit of similar stuff going on in public housing projects, though obviously not as a susbtitute for real hotels. A friend of mine lived in such an arrangement briefly, where the apartment was officially leased to a welfare mother who supposedly had multiple children (including teens) living there, thus qualifying her for a huge apartment. But only two younger children actually lived there, and the woman (who obviously wasn’t paying a dime for the apartment in the first place) was renting out rooms at standard NYC rental rates. The welfare crowd is actually very pro-capitalism, as long as somebody gives them the capital for free.