Landlord Can't Require Security Deposit for Garage Space

Landlord provided a garage space to rent-stabilized tenant as a required service. Tenant complained that landlord demanded a $125 security deposit long after she starting using the garage space. The DRA ruled that this was an overcharge and ordered landlord to refund the money. Landlord appealed, claiming that there was no overcharge. Landlord also pointed out that tenant filed a complaint of reduction in services, not an overcharge complaint. The DHCR ruled against landlord. It didn't matter whether the DRA considered the security deposit an overcharge. Landlord impermissibly changed the terms of a required service by demanding the security deposit and must refund it to tenant.

2559 Sedgwick, LLC: DHCR Adm. Rev. Docket No. WD610009RO (9/19/08) [2-pg. doc.]