DHCR Can't Rule on Utility or Damage Issues in Case of Tenant Overcharging Subtenant

A subtenant complained to the DHCR that he was overcharged by a rent-stabilized tenant. The DRA ruled for the subtenant and ordered tenant to refund $8,035. Tenant appealed and lost. Tenant asked the DHCR to modify the order, to adjust for accrued unpaid rent, utilities, cable, and internet charges due under the parties' rental agreement, as well as damages by the subtenant to tenant's washing machine and personal items. But the DHCR pointed out that RSC Section 2525.7 prohibited tenant from collecting more than the proportionate share of apartment rent from the subtenant.  In this case, subtenant's proportionate share of the rent was 50 percent. Whatever may have been agreed to between tenant and subtenant concerning utilities, damages, etc. remained a private matter outside the purview of the RSC and not enforceable by the DHCR. Tenant also made no specific claim concerning rent unpaid by the subtenant. Tenant could seek to resolve any question of unpaid rent in court.

Smith: DHCR Adm. Rev. Docket No. KR210019RO (8/8/22)[2-pg. document]