No First Rent for Apartment Renovations

Tenant complained of a rent overcharge. The DRA ruled for tenant. Landlord appealed, claiming that it was entitled to collect a first rent from tenant because it created a new apartment. Landlord changed the inside of the two-room apartment through renovations and converted a former airshaft into a closet. The DHCR ruled against landlord. The outer dimensions of tenant's apartment weren't changed by the renovation work. Landlord's diagrams showed that the shaft already was part of tenant's apartment. And even if it wasn't, adding one closet didn't change the dimensions of the apartment enough to justify a first rent. Landlord could collect only a 1/40th rent increase for the apartment renovations.

Trezza Mgmt./Cornell: DHCR Adm. Rev. Dckt. Nos. NL210090RO and NL210098RT (2/21/01) [7-pg. doc.]