Landlord Can Set Free Market Rent for Outdoor Garage Space

Tenant complained of a rent overcharge. Tenant moved from one apartment to another in the building. At the same time, tenant switched from renting an indoor parking space from landlord to renting an outdoor parking space. Landlord charged tenant $65 for the outdoor parking space. The DRA ruled for tenant. Since prior tenant paid $40 for the space, landlord could charge tenant only $48 for parking. Landlord appealed, claiming that it could charge new tenant a free market rent, subject thereafter to rent guidelines increases. The DHCR ruled for landlord. Rent Stabilization Code Section 2520.6(r)(4)(xi) states that the first rent paid by tenant for a garage space or other ancillary service wasn't subject to rent guidelines increases. Since the ETPA was silent on this question, it was DHCR policy to apply the Rent Stabilization Code provision.

Whitehall Properties LLC: DHCR Adm. Rev. Dckt. No. RG910069RO (11/25/03) [3-pg. doc.]