Landlord Can Stop Rent-Controlled Tenant from Rent Gouging

April 1, 2005

LVT Number: 18030

Landlord sued to eject rent-controlled tenant for rent gouging. Tenant charged roommates more than the entire legal regulated rent, and operated the apartment as a bed-and-breakfast. Tenant asked the court to dismiss the case. Tenant argued that rent-control regulations didn't bar tenant from charging roommates a disproportionate share of the legal rent. The court ruled for landlord in part. Tenant wasn't merely charging roommates more than their proportionate share of rent-controlled rent. Tenant was charging roommates more than the entire legal rent.

Landlord sued to eject rent-controlled tenant for rent gouging. Tenant charged roommates more than the entire legal regulated rent, and operated the apartment as a bed-and-breakfast. Tenant asked the court to dismiss the case. Tenant argued that rent-control regulations didn't bar tenant from charging roommates a disproportionate share of the legal rent. The court ruled for landlord in part. Tenant wasn't merely charging roommates more than their proportionate share of rent-controlled rent. Tenant was charging roommates more than the entire legal rent. There were no grounds for eviction under rent-control regulations. But landlord could seek money damages, and the court could order tenant to stop profiteering.

Leonori Assoc. v. Sultan: NYLJ, 3/23/05, p. 18, col. 1 (Sup. Ct. NY; Kapnick, J)

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