No Vacancy Allowance Permitted

Tenant complained of a rent overcharge. The DRA ruled for tenant, found that there was a willful overcharge, and ordered landlord to refund $4,700. Landlord appealed, claiming that the DRA should have granted a vacancy increase because tenant was aware of the apartment's rental history. The DHCR ruled against landlord. Notice to tenant of the apartment's rental history allows a landlord to increase the prior legal regulated rent. But it doesn't entitle landlord to a vacancy increase. To collect a vacancy increase, landlord must file a certification with the DHCR confirming that one month's prior rent has been spent painting or otherwise preparing the apartment for the new tenant. A copy of this certification must be attached to new tenant's lease. In this case, landlord didn't show that the apartment preparation certification was filed on time or attached to tenant's lease.

House Beautiful Apt. Corp.: DHCR Adm. Rev. Dckt. No. GI720173RO (4/28/99) [3-pg. doc.]