No Deemed Renewal for Prior Tenant Who Moved Out Before Lease Term Ended

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $10,000, including interest and triple damages. Landlord appealed, claiming that the DRA should have deemed a renewal lease for a prior tenant when calculating the legal rent. Landlord also claimed that it was entitled to a rent increase for individual apartment improvements (IAIs).

The DHCR ruled against landlord. Landlord offered prior tenant a renewal lease that commenced in April 2012. While landlord deemed the unsigned renewal lease, that tenant moved out prior to completion of the two-year lease term assigned. Under Rent Stabilization Code Section 2523.5(c)(2) and Real Property Law Section 232-c, there was no deemed renewal and prior tenant was month-to-month with no renewal increase applied. The DHCR also rejected proof of IAIs submitted by landlord for the first time on appeal.

1264 LLC: DHCR Adm. Rev. Docket No. FQ610061RO (11/30/17) [3-pg. doc.]