Apartment Was Vacancy Deregulated Before Tenant Moved In

Unregulated tenant complained of rent overcharge and improper deregulation of his apartment. The DRA ruled against tenant and dismissed the case. Tenant appealed and lost. Tenant paid $1,750 per month under his initial lease in March 2011. The prior, rent-stabilized, tenant's last rent was $1,554. Landlord showed that it spent $30,000 on individual apartment improvements (IAIs) after prior tenant moved out. Landlord was entitled to an IAI rent increase, vacancy increase, and longevity increase, which, together, brought the legal rent up to $2,500. The high-rent vacancy exemption applied to tenant even though he paid less than $2,500 when he moved in. There also was no indication of fraud.

Paton: DHCR Adm. Rev. Docket No. GU410016RT (2/28/19) [5-pg. doc.]