Rent-Stabilized Tenant Charged Triple Damages for Overcharging Subtenant

Subtenant complained to the DHCR that rent-stabilized tenant had overcharged him. The DRA ruled for subtenant and ordered tenant to refund $7,300, including triple damages. Tenant appealed and lost. Tenant claimed that she didn't know she was rent stabilized and that, while she was in California for a few months on an internship, she upgraded and fully furnished the apartment in order to sublet. Tenant claimed that the $2,400 per month charged to subtenant was reasonable. The DHCR pointed out that tenant had a rent-stabilized lease so couldn't claim she didn't know the apartment was rent stabilized. Tenant, who chose to sublet, had a duty to investigate the apartment's rent-regulatory status. Rent Stabilization Code Section 2525.6(b) provides that the rent charged to a subtenant can't exceed the legal rent plus a 10 percent surcharge and that triple damages applied if a tenant overcharged a subtenant. Tenant also claimed that subtenant damaged the apartment. These claims had no effect on the overcharge determination, and tenant must pursue them in court.

Moss: DHCR Adm. Rev. Docket No. EV210043RO (5/10/17) [3-pg. doc.]