Landlord Can Charge Initial Garage Rents at Free Market Rates

Landlord asked the DHCR for permission to modify the building’s backyard to increase its parking lot. The DRA ruled for landlord on the condition that parking fees must be based on the current vacancy lease guidelines in effect. Landlord appealed and won. Landlord claimed that it was entitled to a free market rent for the initial rental of a rent-stabilized parking space. The current parking fee was $125 per month. Landlord had proposed to charge new tenants $200 per month, subject thereafter to rent guidelines increases. Under Rent Stabilization Code Section 2520.6(r)(4)(xi), landlord was entitled to charge a fair market rent to a rent-stabilized tenant upon initial rental of a parking space. After that, rent guidelines applied. [Click here to download PDF of original decision.]

BRG Queens LLC: DHCR Adm. Rev. Docket No. CR110040RO (9/18/15) [2-pg. doc.]