Legal Rent Increase Waived

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $14,944, including interest. Landlord appealed and lost. For the lease period commencing on June 1, 2010, landlord was entitled to charge tenant a vacancy rent increase of 17 percent, which would have made the legal rent $2,454. But landlord instead charged tenant $2,400 without preserving the lesser rent as a preferential rent. The base rent therefore was $2,400. It is well settled that when a landlord has failed to collect the maximum permissible increase, landlord may not retroactively recalculate tenants rent based on the maximum permissible amount that had been waived. In addition, landlord failed to register the apartment rent for 2012, 2013, and 2014. Therefore, the DRA properly froze tenant’s rent until the missing registrations are filed.

Amwest Realty Assoc. LLC: DHCR Adm. Rev. Docket No. DX410019RO (4/27/16) [3-pg. doc.]