Individual Apartment Improvements Were Done Before Tenant Moved In

November 24, 2017

LVT Number: #28024

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $21,322, including triple damages. Landlord appealed and won. Landlord argued that, because the overcharge was based solely on disallowed individual apartment improvements (IAIs) that were performed and which landlord believed in good faith qualified as a reason for a rent increase, triple damages shouldn't apply. Landlord also claimed that the IAIs should have been approved by the DHCR.

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $21,322, including triple damages. Landlord appealed and won. Landlord argued that, because the overcharge was based solely on disallowed individual apartment improvements (IAIs) that were performed and which landlord believed in good faith qualified as a reason for a rent increase, triple damages shouldn't apply. Landlord also claimed that the IAIs should have been approved by the DHCR. Although landlord's contractor sent landlord an invoice after tenant moved in, the floor work performed was done before tenant moved in. Landlord proved the $26,000 cost of IAIs, and there was no rent overcharge.

Life Leasing LP: DHCR Adm. Rev. Docket No. FN110049RO (9/29/17) [3-pg. doc.]

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