Landlord Charged Less Than Fair Market Rent

Landlord rented apartment to tenant under a one-year lease at $2,005 per month commencing Dec. 1, 2008. The lease stated that the apartment was unregulated. Tenant filed a fair market rent appeal, claiming that the apartment was subject to rent stabilization and that his rent was more than the fair market rent. The apartment previously was rent controlled before tenant moved in. The DRA found that tenant's rent was less than the fair market rent, and dismissed the complaint. Tenant appealed and lost. The 2008 registered rent for a comparable apartment in the building was $963. In addition, landlord documented individual apartment improvements made to the apartment at a cost of over $36,000. When the "1/40th" increase of $900 was added to the rent-controlled rent increased by the permissible Special Guidelines increase, the initial legal regulated rent was $2,258. Therefore, the apartment was deregulated and landlord was free to charge the market rent of $2,005.

Bahnemann: DHCR Adm. Rev. Docket No. ZA410040RT (2/15/12) [3-pg. doc.]