Landlord Can Charge Lease Transfer Fee

(Decision submitted by Patrick K. Munson of the Manhattan law firm of Kucker Kraus & Bruh, LLP, attorneys for the landlord.) Tenant complained of a rent overcharge. The DRA ruled for tenant, and landlord appealed. The overcharge finding was based on landlord's collection of a lease transfer fee. Tenant moved out of one apartment and into another in landlord's building before his lease on the first apartment expired. Landlord claimed there was no overcharge. The DHCR ruled for landlord. A lease transfer fee isn't rent, and the CAB, DHCR's predecessor agency, had ruled that they were legal.

North Carolina Leasing Co.: DHCR Adm. Rev. Dckt. No. IH210100RO (7/14/99) [2-pg. doc.]