Landlord Didn't Prove That Base Rent Was Preferential

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $1,225, including triple damages. Landlord appealed and lost. Tenant showed that he paid $900 per month before his Jan. 1, 2012, renewal lease commenced, and landlord failed to prove that the $900 amount was a preferential rent. So tenant’s legal rent under the 2012 renewal lease was $965.25. Tenant’s later Jan. 1, 2014, renewal lease offer was for an incorrect rent, and tenant therefore was a month-to-month tenant from Jan. 1, 2014, through Feb. 29, 2016, again at $965.25 per month. Tenant’s rent also was frozen at $900 due to two rent reduction orders that were still in effect. The overcharge was willful because landlord didn’t prove there was a preferential rent and because landlord didn’t obey the rent freeze imposed by the rent reduction orders.

398 Beach 13 LLC: DHCR Adm. Rev. Docket No. EQ110047RO (12/9/16) [3-pg. doc.]