Garage Space Is Essential Service

Rent-controlled tenant complained of rent overcharge after landlord increased the rent on his ancillary garage space from $64.75 per month to $135 per month. Landlord claimed that the apartment's 1962 lease didn't mention a parking spot and that this service wasn't provided by landlord. Landlord argued that "ancillary" services also didn't apply under rent control. Tenant admitted that he started renting the garage space during the 1970s. The DRA ruled against tenant, finding that the garage rent was separate from tenant's MCR, that garage space was offered as an optional service to the apartment, and that the garage space was subject to rent control.

Tenant appealed and won. The DHCR found that tenant's garage space was subject to rent control and that the rent increase collected was void and unenforceable. Landlord appealed, claiming that the DHCR's decision was arbitrary and unreasonable. The DHCR took the case back for reconsideration and ruled again for tenant. The garage space was provided as part of the rent-controlled tenancy. Similar garage spaces were provided to other rent-controlled tenants in the building. And landlord's 1984 building services registration listed garage service. But the rent charged may be legal and tenant should file a separate complaint with the DHCR for a determination of the legal garage rent.

Cooper: DHCR Adm. Rev. Docket No. AS120002RP (9/12/13) [7-pg. doc.]