Landlord Gets Rent Increase for Some Apartment Improvements

Tenant complained of a rent overcharge. Landlord claimed it made apartment improvements before tenant moved in and therefore was entitled to a "1/40th" rent increase. The DRA ruled for tenant and ordered landlord to refund $3,900, including triple damages. The DRA allowed some rent increase for the installation of a new stove, refrigerator, and bathroom door, but denied any increase for bathroom demolition, Sheetrock, ceramic tiles, sink, medicine cabinet, kitchen cabinets, and new bedroom door. Landlord appealed, claiming that the DRA improperly disallowed additional 1/40th rent increase. The DHCR ruled for landlord in part. The DHCR allowed a rent increase for the cost of the bathroom floor tiles, and one of the three claimed kitchen cabinets. The total overcharge was reduced to $2,750.

Bottem Realty, LLC: DHCR Adm. Rev. Docket No. UK210042RO (2/21/07) [5-pg. doc.]