Base Rent Is First Rent Charged After Base Date Vacancy

Tenant complained of a rent overcharge. He claimed that landlord charged him an illegal broker fee equal to one month's rent when he rented the apartment. The DRA ruled for tenant and awarded him triple damages for willful rent overcharge. Tenant appealed, claiming that the DRA incorrectly calculated the base date rent and that there was an additional overcharge. The DHCR ruled against tenant. Tenant pointed out that the 2002 annual rent registration listed the rent as $529 per month. He said that the base date rent should be the 2002 registered rent plus applicable guidelines increases. But the base rent date was Nov. 2, 2002, four years before tenant filed his complaint. On that date the apartment was vacant. So the DRA properly determined that the base rent was $850, which was the amount charged to tenant on the base date. Under Rent Stabilization Code Section 2526.1(a)(3)(iii), if an apartment is vacant on the base date, the legal regulated rent is the rent agreed to by landlord and the first rent-stabilized tenant to take occupancy after the vacancy.

Islam: DHCR Adm. Rev. Docket No. VJ210053RT (2/8/08) [3-pg. doc.]