Renovations Made at Tenant's Expense

Tenant proposed to make improvements to his rent-stabilized apartment. Under one proposal, tenant would pay additional rent for a storage room of 100 square feet adjacent to the kitchen and would, with landlord's permission, knock down the wall between the kitchen and storage room. Tenant would pay for the work. Under a second proposal, tenant would, at his sole cost and with landlord's permission, enclose 150 square feet of an 800 square foot terrace, with the 150 square feet to be added to tenant's living room. Under both proposals, landlord would give up any rent increases for an increase in dwelling space or apartment improvements, or for a first rent based on a change in the apartment's dimensions. Tenant asked the DHCR if these proposals were legal under rent stabilization. In an opinion letter, the DHCR stated that, particularly with regard to the first proposal, landlord couldn't charge a rent increase or a first rent to tenant based on improvements or apartment alterations paid for by tenant.

DHCR Opin. Ltr. by Charles Goldstein (5/20/98) [3-pg. doc.]