Landlord Can't Claim Rent-Stabilized Tenant Is Mere Licensee

Landlord sued to evict apartment occupant after serving a 10-day notice to quit, even though the occupant had moved into the apartment under a fully executed one-year rent-stabilized lease. Landlord claimed that occupant was a licensee rather than a tenant because of the "early occupancy licensee rider" incorporated into the lease, which allowed occupant to live in the apartment for two months before her monthly rental obligations commenced and provided for the notice to quit. Landlord's petition stated that occupant's payment for the security deposit and first month's rent failed to clear and therefore her license never ripened into a rent-stabilized tenancy.

The occupant failed to appear on the initial court date, and the court conducted an inquest, where landlord claimed that there were now rent arrears totaling more than $18,000. But the court dismissed the case, finding that landlord's predicate notice was fatally defective. The court found that the occupant was a tenant based on the fully executed lease agreement. Landlord couldn't rely on the lease jargon that characterized tenant as a licensee during her early apartment occupancy. The apartment itself was subject to rent stabilization, and a month-to-month tenancy can't be reconciled with the respective rights and responsibilities of landlord and tenant under the Rent Stabilization Law and Code. Once a rent-stabilized tenancy is created, it can be terminated only after service of a notice setting forth the grounds for eviction. Landlord could start a new eviction proceeding based on nonpayment or any applicable ground after service of a proper termination notice. 

Archer 1 LLC v. Rivera: Index No. L&T 321411/23, 2024 NY Slip Op 50595(U)(Civ. Ct. Queens; 5/20/24; Schiff, J)