Landlord Can't Evict Rent-Stabilized Tenant Who Overcharged Subtenant

Landlord sued to evict rent-stabilized tenant for illegal subletting and for overcharging subtenant. Tenant claimed that any violation of the Rent Stabilization Law had been cured and asked the court to dismiss the case. The court ruled for landlord in part. Tenant had sublet the apartment without landlord's permission. This was a violation of tenant's lease, but tenant cured and subtenant moved out. Tenant also collected a 24 percent overcharge from subtenant. This violated Rent Stabilization Code Section 2525.6(b), which allows tenant to collect 10 percent more than the legal rent if the apartment is sublet fully furnished. Tenant had refunded any overcharge collected from subtenant. The court granted landlord a judgment of possession but permanently delayed execution of the eviction warrant. The amount of tenant's overcharge wasn't enough to consider it commercial exploitation or profiteering.

672 Ninth Ave. LLC v. Burbach: NYLJ, 3/7/07, p. 18, col. 3 (Civ. Ct. NY; Marton, J)