Tenant's Garage Rent Subject to MBR Increases

Rent-controlled tenant complained of a rent overcharge after landlord increased his monthly garage rent from $65 to $135. This increase was more than the annual 7.5 percent MCR increase permitted under rent control. The DRA ruled against tenant, finding that the garage rent was a separate charge from the apartment rent, wasn't included in the MCR, and that the garage space was an optional service not covered by rent control regulations. Tenant appealed and won. Tenant pointed out that prior landlord had issued only one garage lease to tenant in 1970 and had previously limited garage rent increases to 7.5 percent. Although the garage space wasn't included as an essential service for the apartment on April 30, 1962, nothing in the rent control regulations prevented landlord and tenant from later agreeing to a new service. The maximum rent for the garage space was $65 per month plus tax between Jan. 1, 2010, and Dec. 31, 2011. Starting Jan. 1, 2012, landlord could increase the garage rent by the 7.5 percent if MBR increases were granted for 2012-2013. The rent would be subject thereafter to future MBR increases.

Cooper: DHCR Adm. Rev. Docket No. ZJ120032RT (2/1/12) [4-pg. doc.]