Access Charge Before Lease Commencement Date Was Rent Overcharge

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant, finding a small overcharge. The DRA directed landlord to refund $725 plus interest for a total of $943. Landlord and tenant both appealed, and the DHCR denied both PARs. Tenant objected to any rent increase for individual apartment improvements performed before tenant moved into the apartment. But landlord proved the $8,000 cost of the "1/40th" improvements and therefore was entitled to a monthly rent increase of $200. Landlord argued that the $725 charge in question represented a half-month's rent and was permissible because landlord gave tenant access to the apartment one-half month before the lease commencement date. But this additional charge was prohibited by Rent Stabilization Code Section 2525.2(a). And landlord was adequately compensated for tenant's access by the substantial 1/40th rent increase.

Ramos/Parke Towers East: DHCR Adm. Rev. Docket Nos. AS110009RT, AS110025RO (5/30/13) [5-pg. doc.]