Landlord Loses Legal Rent Increase by Charging Less Than Legal Regulated Rent

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $2,880 because landlord failed to apply timely RGB increases and offered tenant a renewal lease at a higher monthly rent while tenant’s current lease was still in effect. Landlord also failed to prove claimed individual apartment improvement (IAI) costs. Landlord appealed and lost. Landlord claimed that the legal base date rent was $591. The base rent date was May 10, 2011, four years prior to the filing of tenant’s complaint. Landlord didn’t submit a base date lease with its answer to tenant’s complaint. Since the complaining tenant was also the base date tenant, it is the DHCR’s practice to use either the rental amount contained in the complaint or the amount recorded on the apartment’s rent registration statement. Landlord charged tenant $558 on the base rent date. Since landlord charged less than the legal regulated rent, landlord waived the right to collect a higher rent. And the Rent Stabilization Law doesn’t allow an increase in rent for a period where there was no valid lease in effect.

Courtland Hills LLC: DHCR Adm. Rev. Docket No. DV610040RO (2/24/16) [3-pg. doc.]