Landlord Can't Charge Rent-Stabilized Tenant for Water Usage

Rent-stabilized tenant complained to the DHCR of rent overcharge between May 1, 2019, and April 2023 when he moved out. The DRA ruled for tenant, finding that the bulk of the overcharge was caused by landlord charging fees for water usage. NYC landlords are not allowed to charge tenants for water usage in rent-stabilized apartments. The total overcharge, including triple damages was $4,825.

Landlord appealed and lost. Landlord argued that tenant signed a Water Usage Rider with his vacancy lease, that the apartment was sub-metered for water usage, that tenant agreed to pay for water, and that RSC Section 2522.10 permits landlord to charge for utility services without limitation to electricity, gas, cable, or telecommunications.

But the DHCR pointed out that, under RSC Section 2520.6(r), hot and cold water are a required service to be provided by a landlord. And under RSC Section 2520.13, a tenant may not waive a benefit afforded under the Rent Stabilization Law. So, tenant's agreement to pay for water charges in the lease rider was void. Water usage is a required service and charges can't be passed on to the tenant. There also was no proof that landlord applied to the DHCR to decrease required services via sub-metering apartments for water usage or that the DHCR even allowed this. While RSC Section 2522.10 permits sub-metering for electricity and other utilities, it doesn't permit an owner to pass along charges for required services to the tenant. To the extent that a prior DHCR decision cited by landlord was inconsistent with the law on sub-metering and required services, the DHCR wouldn't follow that decision here.

Brisbane Leasing Limited Partnership: DHCR Adm. Rev. Docket No. MU110011RO (12/31/24)[3-pg. document]