Landlord Can Charge First Rent for Subdivided Apartment

Tenant filed a fair market rent appeal. Landlord claimed that it newly created tenant's apartment by subdividing a larger apartment into two smaller ones. The DRA ruled for tenant, and landlord appealed. Landlord argued again that it could get a first rent for creating a new apartment that would thereafter be subject to rent stabilization. The DHCR ruled for landlord. Landlord submitted sufficient proof of the alterations by which the apartment was created. Landlord could charge a free market rent thereafter, subject to rent guidelines.

231-7 Second Ave. Housing Owners Corp.: DHCR Adm. Rev. Dckt. No. EB410112RO (4/12/96) [4-page document]