Tenant Created Extra Room by Building Shed

Facts: Landlord asked the DRA to increase tenant's rent based on apartment alterations made by tenant. Tenant had built a shed out from his ground-floor apartment into the building's backyard. Landlord claimed that tenant had created a new apartment. Tenant claimed he had paid for the work himself and that it didn't affect landlord's rights, since tenant had exclusive use of the yard. The DRA ruled for landlord in part, increasing tenant's monthly rent from $450 to $675. Landlord appealed, claiming that the new rent should be $1,500. Tenant also appealed. DHCR: Landlord and tenant both lose. Tenant didn't change the outer perimeters of his apartment, so there was no basis to charge tenant a free market rent for a newly created apartment. The DRA fairly divided tenant's $450 rent by two, which was the number of rooms in his apartment, and added the resulting amount of $225 to his rent for the extra ''room'' created by the shed.

Up-hattan Corp./Hasset: DHCR Adm. Rev. Dckt. Nos. FH420069RO, FH420099RT (2/5/99) [8-pg. doc.]