No Rent Increase for Signed Renewal Lease

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $255 in total overcharges. Landlord appealed and argued that the DRA improperly disallowed a rent guideline applicable to prior tenant’s Aug. 1, 2010, renewal lease. The DHCR ruled against landlord. Although landlord produced a signed lease for prior tenant, there was no proof that prior tenant actually remained in occupancy during the prior lease term. Instead, landlord signed a proposal for individual apartment improvements (IAIs) on Aug. 2, 2010. That work was completed on Sept. 8, 2010, and complaining tenant moved into the apartment on Sept. 15, 2010. Landlord submitted no rent receipts or ledgers showing that prior tenant paid rent after July 2010. So there never was an actual renewal lease term for prior tenant in 2010, and no renewal increase could be added to the legal rent for that renewal.

50 Rosen Realty Corp.: DHCR Adm. Rev. Docket No. CW210022RO (4/9/15) [3-pg. doc.]