Prior Landlord Became Rent-Stabilized Tenant

Rent-stabilized tenants sued landlord and prior landlord in 2008 for rent overcharge. They moved into the apartment in 2006 at an initial rent of $1,400 per month. Prior tenant had owned the apartment until 1998 when she sold her interest to prior landlord. As part of the contract of sale, landlord gave prior tenant a tenancy "for a term equal to her life plus one month at a fixed rent of $258 per month." The contract also called for execution of a lease and stated that landlord had filed "DHCR and rent stabilization forms...as required." Landlord claimed that prior tenant wasn't rent stabilized but merely had a life estate in the apartment. The court disagreed. Landlord registered prior tenant's rent with the DHCR, gave prior tenant a rent-stabilized lease, attached a rent-stabilization rider to prior tenant's lease, and modified the lease to state that "this lease is for a rent stabilized apartment" instead of "if this lease is for a rent stabilized apartment...." The court found that it was the parties' intent to give prior tenant a life tenancy governed by the rent stabilization law. The court ordered landlord to refund $93,500, including interest. The court denied tenants' request for triple damages, finding no willful overcharge.

Zabolotsky v. Morningside Realty LLC: 44 Misc.3d 1209(A), 2013 NY Slip Op 51627(U) (Sup. Ct. Kings; 10/1/13; Schmidt, J)