Minor work without permit common? And Consequences?

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one of the latest shams i see on the rise nowadays.. perhaps due to increased litigious mindset (i'll sue you! etc) America's troubled economy with 1/3 population permanently unemployed, many tenants get their landlord cited for violations (ie, any and all work without permit 

which nowadays thanks to DIYers, seems to me in this area at least, most every home has some level of work ie, DIY electrical work, decks, summer kitchens, etra beds/baths, etc for which a permit was never pulled.

enter multi-level lease holdover!

 tenants who often are "renting" from multiple owners (often preying on the elderly whose properties tend to be more neglected and violations left uncorrected) and consequently subleasing out the property they rent to others, without owning the property nor paying rent on it, generating multiple streams of property.

one dude i found to be doing this, while showing a few apts and having him apply to rent a 2nd at one of the properties i manage, when he had just put a deposit already on a 1st, when confronted, even boasted it's his and his 'homies' method of 'investing in the new economy'! 0_0