Landlord Waived Legal Rent by Charging Lower Rent

Rent-stabilized tenant complained of a rent overcharge, claiming that landlord improperly collected rent increases while the apartment wasn't registered with the DHCR. The DRA ruled for tenant and ordered landlord to refund $3,335. Landlord appealed and lost. Landlord claimed that there were calculation errors in the DRA's order. But the DRA's order was correct. Although the maximum legal regulated rent that landlord could have charged tenant under a March 1, 2007, lease was $641.14, the legal rent was properly set as the rent of $615 actually charged. Under the DHCR's waiver rule, the rent must be established at the lower rent charged. And the resulting overcharges stemmed not only from this waiver but from landlord's noncompliance with a rent freeze on the collectible rent during periods when the apartment wasn't registered.

Ahmed: DHCR Adm. Rev. Docket No. AO110038RO (8/14/13) [3-pg. doc.]