Legal Definitions - illusory tenant

An illusory tenant is a fictitious person who subleases an apartment to help the landlord avoid rent-law regulations. It can also refer to a tenant whose business is to sublease rent-controlled apartments.

For example, a landlord may create a fake tenant to sublease an apartment to themselves or a friend, allowing them to charge higher rent than what is allowed under rent control laws. This practice is illegal and can result in penalties for the landlord.