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Sam Smith is forced to move into the run down Flushing, New York house of his entertainment business partner Ernest Grey after they are evicted from their offices for making pornographic movies and losing all their money and equipment in the process. Ernie originally bought the house on Sam's ill-advice of the property soon being expropriated for a highway, which never happened. Further adding to the house's lack of appeal is that it is located next to a cemetery. As Ernie tries to sell the house, which is run by his devoted but exasperated housekeeper Molly Fletcher who hates Sam, he rents out rooms in it. As soon as Sam moves in, strange occurrences happen in the neighborhood, including a mutilated body being found in the cemetery, and one of their neighbors, Mrs. Potter, being attacked by a howling man. Ernie's new physician, Dr. Charles Strauss, believes that Ernie's developing symptoms, including a need to howl, points to him turning into a werewolf, which may explain the ravaged dead body and the attack on Mrs. Potter. Dr. Strauss tries to cure Ernie, while Sam thinks they should capitalize on Ernie's misfortune in some form of entertainment capacity. But others around them may know more about the strange goings-on than they let on. They include Ernie's two boarders - the violin playing Axel Kronstadt and pretty college student Robin Sherwood, to who Ernie is attracted - and the Ravenswoods, a mysterious Hungarian family that lives next door.