Tenant Overcharged Subtenant

Subtenant complained of a rent overcharge. Tenant charged her $1,000 per month when the legal regulated rent for the apartment was $725. Tenant claimed that subtenant had bounced one rent check. Tenant also said that she and subtenant orally agreed that in addition to rent, subtenant was being charged for gas and electricity, DSL Internet connection service, and renter's insurance. The DRA ruled for subtenant and ordered tenant to refund $2,900, including triple damages. Tenant appealed, claiming that the DRA didn't take subtenant's bounced rent check into account when calculating how much overcharge subtenant paid. Tenant also argued that the DRA didn't consider the other charges included in subtenant's payments, and that there was no willful overcharge. The DHCR ruled for tenant in part. The overcharge calculation was incorrect because of the bounced check, and was reduced to $2,485. There was no written agreement between tenant and subtenant regarding additional charges, and subtenant denied there was any oral agreement. Therefore, the DRA properly disregarded this claim by tenant. Under Rent Stabilization Code Section 2525.6(b), it didn't matter if tenant's overcharge of subtenant was willful. Either way, it was subject to triple damages.

Motichka: DHCR Adm. Rev. Docket No. UK410004RP (1/4/07) [5-pg. doc.]