Proof of Illegal Subletting | Case Study: Hotel Rental Despite Fire Damage

In this case, Kurtz Detective Agency was commissioned by a private client who owned a large commercial property leased to a hotel operator. After a fire broke out on the top floor, the landlord prohibited the subletting of rooms on that floor to hotel guests or any other persons. The hotel, understandably, demanded a rent reduction, which the landlord granted without objection. However, a few weeks later, the landlord received concrete information suggesting that the affected floor was still being rented out to guests, even while the hotel continued to benefit from the reduced rent.

To verify this suspicion and, if confirmed, to obtain court-admissible evidence of rental fraud, the property owner hired our corporate investigation team (+49 711 7153 0028).

Infiltration of the Target Property through Room Booking

During the initial reconnaissance phase, our investigators examined both the observation conditions and whether there were visible signs of activity on the fire-damaged floor, such as open windows or lights. None were detected. Following this, one of our private investigators entered the hotel, posing as a potential guest, and inquired about available rooms for the night.He insisted on a room directly below the affected floor, as this location offered the best chance to hear sounds that might indicate occupancy above. To achieve this goal—and in hopes of perhaps even being offered a room on the restricted floor—the investigator asked to see three available rooms on different levels before making his choice.

Back at reception, he noticed a notepad listing room numbers with handwritten names beside them—some belonging to rooms on the fire-damaged floor. When he asked if there was a room with a view of the Achalm mountain, the receptionist replied that such a view was only possible from the top floor but claimed that no rooms were available there. He then quickly covered the list with a sheet of paper, concealing the entries.

Clear Evidence of Continued Guest Accommodation

Just seconds after entering his room, the investigator unmistakably heard muffled coughing and footsteps from the floor above. Later, he noticed how thin the hotel doors and walls were, prompting him to leave the building for all phone callswith the client or operations team to prevent eavesdropping. Throughout the day, he repeatedly heard sounds suggesting occupancy.

That evening, a van with company signage arrived. Four young men in work clothes exited, carrying bags into the hotel while conversing in Polish. Inside, they proceeded to the top floor, split into two pairs, and each pair entered a separate room on the prohibited floor. Using various pretexts, our investigator moved about the hotel to collect more evidence. He clearly heard TV soundsfrom three rooms and conversations from another. After dark, he noted light visible beneath the doors of three rooms and observed from outside that several windows on the top floor were illuminated. In one dark room, a man was seen smoking at an open window—a violation of both hotel rules and fire safety regulations—while speaking to another unseen person inside. All relevant activity was photographically documented.

At Least Eight Overnight Guests on the Restricted Floor

The following morning promised an early start for our embedded surveillance operative. From 05:30 a.m. he positioned himself standing with a view of the stairwell to document everyone descending from the top floor. Long periods of standing in one spot are among the most uncomfortable tasks in surveillance work, as they strain the feet, promote fatigue and cause pain in the back and legs. Nevertheless, the investigator accepted this burden in the expectation of heavy activity in the stairwell when guests went to breakfast. About fifteen minutes after the observation began, noises from above were heard — repeated floor creaking and the clicking of footsteps. Shortly afterwards voices, doors closing and locking, and footsteps in the stairwell became audible: the four presumed Polish workmen from the previous evening came downstairs — therefore they had spent the night on the restricted floor. A further quarter of an hour later a tradesman wearing a different company logo came down from the inspected floor, and by 07:00 a.m. two civically dressed persons and another tradesman had also come down.

When at one point no further noises were heard from above, the investigator used the time to briefly check the breakfast room. There he encountered — besides guests from other floors — two of the workmen and the two civilians from the top floor. The workmen spoke in German and made clear that they intended to stay another night.

A cleaner for an empty floor?

During the continued stairwell observation, the investigator carried out intermittent checks of the restricted floor but initially found no signs of habitation. At around 09:30 a.m. a cleaner entered the supposedly non-rented floor and began cleaning the rooms. The investigator was able to glance into the room above his and immediately observed clear indications of overnight use; he also engaged the cleaner while remaining in his cover and obtained relevant information. She confirmed that rooms on the restricted floor could be reserved and were often used for extended periods by companies accommodating their workers when employees were on assignment. When asked whether he could see a room with a view of the Achalm, she opened two rooms without hesitation and showed him the view. These rooms were particularly popular because of the outlook and were usually fully booked. Evidence of very recent occupancy was apparent — unmade beds and clothes spread about suggested use until shortly before.

The documentation of room usage was continued by our agency over the following weeks with two further overnight stays carried out by different investigators. Ultimately the illegal subletting and hence the rental fraud by the hotel operator were unequivocally proven.

Note

To preserve confidentiality and the personality rights of both clients and subjects, all names and precise locations in this case report have been altered beyond recognition.