Landlord Waived Right to Rent Surcharge

Tenant complained of a rent overcharge after landlord started billing her for a washing machine surcharge. Tenant claimed that she had used the washing machine for 30 years, and landlord therefore waived any right to collect the surcharge. The DRA ruled for tenant, and landlord appealed. Landlord bought the building in 2000 and, at the time, prior landlord gave landlord a list of all apartments in the building known to have washing machines. Tenant's apartment wasn't on the list. Landlord said that it began charging tenant shortly after discovering the washing machine in July 2005.
The DHCR ruled against landlord. Rent Stabilization Code Section 2522.9(b)(1) and Operational Bulletin 2005-1 allow a landlord to charge tenant prospectively if landlord finds out about a previously undiscovered washing machine. Tenant claimed that she has used her washing machine since 1966 and, despite prior landlord's list, there was no other proof to the contrary. Since prior landlord never charged her for the washing machine after such an extended period, any surcharge for the appliance was waived. New landlord stepped into the shoes of prior landlord and couldn't collect the surcharge.

Morales/Kwik Realty, LLC: DHCR Adm. Rev. Docket Nos. WD410041RT, WD410023RO (9/16/08) [5-pg. doc.]