Landlord Not Entitled to Vacancy Increase

Tenant complained of a rent overcharge. Landlord claimed it was entitled to a vacancy increase from tenant because tenant had been prior tenant's unauthorized roommate. The DHCR ruled for tenant because landlord hadn't given tenant a vacancy lease. Landlord appealed. The court and appeals court ruled against landlord. The DHCR's decision was reasonable. Landlord chose to resolve its dispute with tenant informally without entering into a new lease. So it couldn't collect a vacancy lease increase.

Plaza Realty Investors v. DHCR: NYLJ, p. 26, col. 6 (5/26/98) (App. Div. 1 Dept.; Rosenberger, JP, Wallach, Tom, Saxe, JJ)