Landlord Can't Charge First Rent After Sealing Off Room

January 1, 2001

LVT Number: 14671

Tenant complained of a rent overcharge. The DRA ruled against tenant, finding that landlord could set a first rent for tenant's newly created apartment. Tenant appealed and won. Landlord then appealed. Landlord had altered the perimeter of the apartment by sealing off one 90-square-foot bedroom before tenant moved in. Landlord claimed that this change created a new apartment and that DHCR's decision was unreasonable. The court ruled against landlord. Landlord sealed off a bedroom in tenant's apartment, but didn't add this space to any adjoining apartment.

Tenant complained of a rent overcharge. The DRA ruled against tenant, finding that landlord could set a first rent for tenant's newly created apartment. Tenant appealed and won. Landlord then appealed. Landlord had altered the perimeter of the apartment by sealing off one 90-square-foot bedroom before tenant moved in. Landlord claimed that this change created a new apartment and that DHCR's decision was unreasonable. The court ruled against landlord. Landlord sealed off a bedroom in tenant's apartment, but didn't add this space to any adjoining apartment. Therefore, DHCR's decision was reasonable. Landlord didn't really change the perimeter walls of the apartment; it just sealed off a bedroom.

Resol Co. v. DHCR: Index No. 108347/00 (Sup. Ct. NY 11/25/00; Friedman, J) [8-pg. doc.]

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