Landlord Must Refund Unexplained Credit Verification Fee

Rent-stabilized tenant complained of rent overcharge collected at the time he rented the apartment. Tenant paid $2,400 although the first month’s rent and security deposit were each $1,100. The DRA ruled for tenant and ordered landlord to refund $200 to tenant. Landlord appealed and lost. Landlord stated that the $200 was paid for a credit verification fee and submitted a copy of the form acknowledging this that tenant signed when he applied for the apartment. Landlord argued that the DRA didn’t ask specifically about this fee. But landlord submitted this information and explanation for the first time on appeal, and therefore it couldn’t be considered by the DHCR.

Pelham 1135 LLC: DHCR Adm. Rev. Docket No. DW610041RO (4/26/16) [3-pg. doc.]