Apartment Labeled Commercial Unit in Lease

Prior landlord signed a single lease with tenant for two separate units. One was a store, the other was an apartment. The lease stated that both units were for commercial use. New landlord sent tenant a notice to cure, and then a lease termination notice based on lease violations. Landlord then sued to evict tenant in the commercial part of landlord/tenant court. Tenant claimed that the apartment was rent stabilized, not commercial. Landlord asked the court to dismiss this defense without a trial because the lease identified the apartment as a commercial unit. The court ruled against landlord. Simply calling the apartment "commercial," when it may be used for residential purposes doesn't mean the apartment might not be rent stabilized. Tenant can't sign a commercial lease and simply change the use to residential without landlord's permission. But landlord can't rent an apartment as a commercial unit, knowing that it will actually be used for residential purposes. Whether tenant's apartment is residential was a fact issue that required a trial.

FRG Ninth Ave. LLC v. Alrubayi: NYLJ, 6/4/08, p. 30, col. 3 (Civ. Ct. NY; Mendez, J)