Landlord Proves Cost of Individual Apartment Improvements

Rent-stabilized tenant complained of rent overcharge. The DRA ruled against tenant, who appealed and lost. Tenant argued that, while landlord claimed that it made individual apartment improvements (IAIs) before tenant moved in, it failed to make them known to tenant and her vacancy lease didn't include the required rider detailing the improvements. But, in response to tenant's complaint, landlord submitted proof that it made IAIs costing $17,340. Landlord submitted a contract, cancelled checks and a sworn statement from the contractor documenting that the kitchen and bathroom were fully gutted and renovated. Although tenant's vacancy lease didn't contain a lease rider as required by Rent Stabilization Code Section 2522.5(b)(3), this provision didn't negate landlord's right to collect the IAI rent increase if adequate proof of the improvements was presented. 

Ramdhan: DHCR Adm. Rev. Docket No. BW110012RT (10/23/14) [4-pg. doc.]