Landlord Proved Cost of Individual Apartment Improvements

Rent-stabilized tenant complained of a rent overcharge. Landlord charged her $1,950 per month when she moved into the apartment. Landlord claimed that it legally increased prior rent by a vacancy increase plus $1,060 for the allowable cost of 1/40th improvements. The DRA ruled against tenant and found no overcharge.

Tenant appealed and lost. Landlord submitted to the DRA a contractor's proposal dated Feb. 1, 2005, for work costing $40,000; copies of two canceled checks paid to the contractor totaling $40,000; a contract dated April 6, 2005, from California Closets for $2,410; two canceled checks to California Closets totaling $2,410; and landlord's check registers listing these payments. Landlord also submitted a carpentry cost breakdown from the contractor at the DRA's request. Landlord's check register indicated that the payments were for work done to tenant's apartment. Tenant acknowledged that most of the work was done. Tenant's claim that the contractor's proposal was inflated was speculative. Landlord wasn't required to obtain the lowest cost for the work done.

Englander: DHCR Adm. Rev. Docket No. XE410023RT (9/3/09) [3-pg. doc.]