Landlord Proves $143,000 Spent on IAIs

Rent-stabilized tenant complained of rent overcharge. The DRA ruled against tenant, who appealed and lost. The DRA found that the base rent date was Oct. 16, 2008, four years before tenant filed his complaint. The base date rent charged to prior tenant was $975. The DRA found that landlord was entitled to collect an initial rent from tenant of $2,721, by applying a 20 percent vacancy allowance, 22.2 percent longevity increase, and $2,334 for 1/60th of the cost of individual apartment improvements (IAIs). Landlord was also entitled to collect an air conditioner surcharge of $58. While tenant argued that the claimed IAI costs were excessive, landlord submitted documentation in the form of signed contracts, cancelled checks, and contractor affidavits showing that it spent $143,150 on apartment renovations. 

Todd: DHCR Adm. Rev. Docket No. CX410038RT (6/5/15) [6-pg. doc.]