Landlord Can't Collect Vacancy Increase from Month-to-Month Tenant

Tenant complained of a rent overcharge and improper lease renewal. Landlord claimed that he properly collected a vacancy increase from tenant, who was former roommate of prior tenant, when he gave tenant his own lease. The DRA ruled against tenant. Tenant appealed, claiming that landlord waived any right to a vacancy lease increase when he continued to accept rent of $500 per month for two years after prior tenant moved out. During this time, tenant had no lease, and landlord treated him as a month-to-month tenant. The DHCR ruled for tenant. Landlord wasn't entitled to collect a vacancy lease increase from tenant three years after starting to collect rent from tenant. Once landlord offered tenant a lease, he was allowed only to collect a renewal increase under that lease. So landlord must offer tenant a proper renewal lease and refund $1,680 in rent overcharges.

Ramadan: DHCR Adm. Rev. Dckt. No. SA110012RT (4/9/04) [4-pg. doc.]