Landlord Can Hold Extra Amount for Tenant's Wall Modification

March 1, 1997

LVT Number: 11333

Tenant complained of a rent overcharge because landlord refused to refund money held in escrow. The DRA ruled for tenant and ordered landlord to refund any amount held in excess of tenant's $250 security deposit. Landlord appealed and explained that it collected $225 from tenant separate from security based on an agreement with tenant. Tenant had modified an apartment wall. Landlord held the money in escrow to guarantee that tenant would restore the wall if he moved out. The DHCR ruled for landlord.

Tenant complained of a rent overcharge because landlord refused to refund money held in escrow. The DRA ruled for tenant and ordered landlord to refund any amount held in excess of tenant's $250 security deposit. Landlord appealed and explained that it collected $225 from tenant separate from security based on an agreement with tenant. Tenant had modified an apartment wall. Landlord held the money in escrow to guarantee that tenant would restore the wall if he moved out. The DHCR ruled for landlord. The mutual agreement between landlord and tenant was reasonable and wasn't a rent overcharge.

Fraclac Realty Corp.: DHCR Adm. Rev. Dckt. No. BH410015RO (10/16/96) [1-page document]

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