Apartment Was Vacancy Deregulated When Tenant Moved No Matter What Rent Was Charged

Tenant complained to the DHCR of rent overcharge in 2018. Landlord claimed that tenant wasn't subject to rent stabilization. The DRA ruled for tenant because tenant paid $2,000 per month when he moved in. The DRA also found no overcharge but directed landlord to register the unit with the DHCR.

Landlord appealed and won. The base date rent in this case was $2,105.29. After that, the apartment became vacant and, after applying applicable vacancy and longevity increases, the legal rent became $2,805.30 when tenant moved in. Since the deregulation threshold at that time was $2,500 per month, the apartment was no longer subject to rent stabilization. The fact that the rent tenant was charged and paid was $2,000 per month didn't matter, since the apartment was no longer subject to rent regulation and landlord was permitted to charge any rent that it wanted to charge.

485 Ocean Realty, LLC: DHCR Adm. Rev. Docket No. LN210006RO (4/25/23)[2-pg. document]