Cost of Delivery, Installation, and Sales Tax for Air Conditioner Included

Tenant complained of a rent overcharge. The DRA ruled against tenant because landlord's 1/40th rent increase for a new air conditioner wasn't a rent overcharge. Tenant appealed, claiming that the DRA didn't consider whether landlord's additional cost for the warranty on the air conditioner could be passed on to tenant. The DHCR ruled for tenant. Landlord was permitted to include the cost of delivery, installation, and sales tax in the total for which an apartment improvement rent increase could be granted. But landlord also paid $80 for a warranty on the air conditioner. The charge for the warranty and the portion of the sales tax that was on the warranty amount were deducted from the total 1/40th increase. The total overcharge was $2.25 per month for a 15-month period.

Brandes: DHCR Admin. Rev. Dckt. No. PD410002RT (4/19/02) [3-pg. doc.]