Landlord Didn't Prove It Collected a Preferential Rent on Base Rent Date

Rent-stabilized tenant complained in 2016 of rent overcharge, claiming that landlord incorrectly claimed that tenant paid a preferential rent. Tenant also claimed that the apartment rent was increased fraudulently to accelerate deregulation, and that a 2016 rent reduction order should've frozen the collectable rent at the prior lease's preferential rent. The DRA ruled for tenant and ordered landlord to refund $11,550, including triple damages and interest.

Landlord appealed and lost. The DRA properly determined that the monthly base date rent was $1,424, which was the actual rent charged and paid on the base date. There was no preferential rent agreement included with the rent history records. Contrary to landlord's claim, the DRA didn't review any pre-base date rent records. The DRA increased the base date rent by applying RGB guideline increases to subsequent renewal leases. The rent reduction order that was in effect for some period during this time occurred when there was a zero percent renewal guideline increase, so it didn't affect the overcharge finding. And landlord couldn't collect an air conditioner surcharge it collected from tenant because it had waived this increase by waiting too long to collect it. 

164-03 LLC: DHCR Adm. Rev. Docket No. IS110085RK (4/20/21) [4-pg. doc.]