Landlord Can Charge First Rent to Ex-Super

Facts: Rent-stabilized tenant became the building super in 1999 and paid no rent during the eight years he was employed by landlord. Landlord also paid tenant $300 per week during this time. However, landlord continued to give tenant renewal leases until 2005, even though tenant wasn't paying rent. When his employment ended in January 2007, tenant expected to resume his status as a tenant paying $565 per month in rent, the amount stated in his last lease. Instead, landlord charged tenant $875 per month rent. Tenant complained to the DHCR of improper lease renewal and rent overcharge. The DRA ruled against tenant, and tenant appealed.

DHCR: Tenant loses. Rent Stabilization Code Section 2520.11(m) made tenant's apartment temporarily exempt for as long as tenant paid no rent and worked in the building as the super. Tenant's complaint was filed in March 2007, so the base date was March 2003. On the base date, tenant's apartment was temporarily exempt from rent stabilization. Under Code Section 2526.1(a)(3)(iii), if an apartment is vacant or temporarily exempt on the base date, the legal regulated rent is the first rent charged after the vacancy or temporary exemption. So landlord was entitled to set a first rent for tenant when he left his super job. The fact that landlord incorrectly signed renewal leases with tenant or registered the apartment incorrectly didn't change tenant's exempt status.

2110 Newkirk Avenue: DHCR Adm. Rev. Docket No. XA210009RP (3/23/09) [2-pg. doc]