Landlord Can't Increase Amount of Late Fee

LVT Number: 16409

Tenant complained of a rent overcharge based on landlord's collection of late fees for late payment of rent. The DRA ruled for tenant. Landlord appealed, claiming that it was entitled to collect late fees under tenant's lease. The DHCR ruled against landlord. Tenant's vacancy lease permitted landlord to collect a $25 late fee for late payment of rent. After tenant renewed her lease, landlord started charging a higher late fee. Landlord was bound by the vacancy lease agreement and couldn't charge more than a $25 late fee.

Tenant complained of a rent overcharge based on landlord's collection of late fees for late payment of rent. The DRA ruled for tenant. Landlord appealed, claiming that it was entitled to collect late fees under tenant's lease. The DHCR ruled against landlord. Tenant's vacancy lease permitted landlord to collect a $25 late fee for late payment of rent. After tenant renewed her lease, landlord started charging a higher late fee. Landlord was bound by the vacancy lease agreement and couldn't charge more than a $25 late fee. Any amount collected in excess of the amount stated in the lease was a rent overcharge.

Sampson Mgmt.: DHCR Adm. Rev. Dckt. No. QJ110041RO (1/15/03) [3-pg. doc.]

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