Landlord Can't Evict Rent-Controlled Tenant for Overcharging Roommates

Landlord sued to evict rent-controlled tenant for profiteering. Tenant collected rent from two roommates for an amount that was $1,270 per month more than the $1,190 rent. The court ruled against landlord. Landlord appealed and lost. Unlike the Rent Stabilization Code, there is no provision in the rent control regulations that either bars tenant from charging his roommates more than their proportionate share of the rent-controlled rent or that makes this grounds for eviction. The fact that the DHCR changed the rent stabilization rules on this issue but not the rent control regulations shows that it was the agency's intent to treat rent-controlled tenants differently. And while courts have permitted eviction of rent-controlled tenants who overcharge subtenants, they have ruled that roommates are treated differently from rent-stabilized tenants.

270 Riverside Dr., Inc. v. Braun: NYLJ, 6/15/04, p. 24, col. 1 (App. T. 1 Dept.; Davis, JP, Gangel-Jacob, Schoenfeld, JJ)