Reasonable Fee Allowed to Process Sublet Request

Rent-stabilized tenant asked landlord for permission to sublet his apartment. Tenant's lease said that if a sublet was granted, tenant agreed to pay landlord a fee equal to one month's rent, for bookkeeping and other expenses. Landlord asked the DHCR if this lease clause was enforceable. In an opinion letter, the DHCR pointed out that in another case, the court permitted landlord to charge $250 as a reasonable application fee when tenant sublet his apartment. In that case, landlord required letters of reference, a credit check, a copy of the sublease, and an interview with the proposed subtenant. The case didn't discuss bookkeeping expenses, and here, tenant's lease didn't explain what the other expenses were. If landlord charged tenant a full month's rent as a sublet fee, it could constitute a rent overcharge.

DHCR Opin. Ltr. by Michael B. Rosenblatt (11/22/04) [3-pg. doc.]