Garage Rent Not Included in Legal Regulated Rent

Tenant complained of a rent overcharge. Landlord claimed that the apartment was deregulated because tenant's initial rent was over $2,000 per month. The DRA ruled for tenant, and landlord appealed. Landlord pointed out that tenant's initial apartment rent was $1,778. In addition, her initial garage rent was $175. The garage was an ancillary service, and its rent was subject to guidelines renewal increases. Landlord argued that tenant's combined rent was over $2,000. The DHCR ruled against landlord. For purposes of determining whether tenant's first rent is above the high-rent deregulation threshold, only the apartment rent counts. So tenant was rent stabilized, and there was some overcharge. The DHCR pointed out that it had never addressed this question before.

Paulsen Real Estate Corp.: DHCR Adm. Rev. Dckt. No. SB710013RP (10/19/04) [4-pg. doc.]