No Lease Establishing Preferential Rent

Tenant complained of a rent overcharge after landlord sent her a renewal lease stating that her rent was being increased from $1,800 to either $1,881 or $1,935, depending on whether tenant accepted a one- or two-year renewal. Tenant never had a lease and had always paid $800 per month. The DRA ruled for tenant, and landlord appealed. Landlord claimed that tenant's $800 rent was preferential and that it was entitled to set a first rent of $1,800. Landlord claimed that prior landlord mistakenly registered tenant's apartment as owner or employee occupied. Landlord also argued that tenant hadn't actually paid a rent increase, so there was no overcharge. The DHCR ruled against landlord. Tenant properly filed a rent overcharge complaint to find out if landlord could legally increase her rent. And it didn't matter if the apartment was improperly registered. Without a lease containing a preferential rent agreement, landlord couldn't claim that tenant's rent was preferential. Tenant's legal monthly rent was $800. Any increase over this amount could be collected only by offering tenant a proper renewal lease.

Baker/Colonnade Mgmt. LLC: DHCR Adm. Rev. Dckt. No. RK410053RO (12/26/03) [2-pg. doc.]