Landlord Omitted Legal Regulated Rent from One Renewal Lease

Rent-stabilized tenant complained of rent overcharge. Landlord claimed that tenant paid a preferential rent and that there was no overcharge. The DRA ruled for tenant and found a total overcharge of $5,400, including triple damages. Landlord appealed and won, in part. Although legal regulated rents and preferential rents were listed in most of tenant's leases, the higher legal regulated rent was omitted from one of tenant's renewal leases. Landlord also pointed out that it made some refund to tenant in order to avoid triple damages. The DHCR revoked the triple damages, finding that landlord had refunded most of the overcharge due to tenant. But Rent Stabilization Code Section 2521.1 requires all leases to list both the legal regulated rent and lower preferential rent if a preferential rent is charged. It didn't matter if landlord made an error. There was still a rent overcharge, and the legal rent was reduced to the preferential rent plus future renewal lease increases going forward after the lease that omitted the legal regulated rent.

Rego Park Ventures LLC: DHCR Adm. Rev. Docket No. FX110020RO (8/29/18) [3-pg. doc.]