Tenant Overcharged Subtenant

Subtenant complained that rent-stabilized tenant overcharged her. The DRA ruled for subtenant and ordered tenant to refund $10,500, including triple damages for willful overcharge. Tenant appealed, claiming that there was no overcharge. Tenant said that she should be allowed to charge subtenant an extra 10 percent because the apartment was rented furnished. Tenant also claimed that she properly included a finance charge in subtenant's rent for taking care of paying the bills connected with the apartment rental. In addition, tenant argued that the amount of any overcharge should be reduced by the profit subtenant made when she rented the apartment to another subtenant during summer travel. The DHCR ruled against tenant. Tenant didn't prove that she sublet the apartment fully furnished. So she wasn't entitled to collect a 10 percent surcharge under Rent Stabilization Code Section 2525.6(b). Tenant also showed no proof of any finance charge agreement with subtenant. And whether subtenant made any profit by further subletting the apartment wasn't an issue that the DHCR could consider in this case.

Kales: DHCR Adm. Rev. Docket No. WI410009RO (10/22/08) [3-pg. doc.]