Tenant's Overcharge of Subtenants Is Willful

Subtenants complained that tenant overcharged them. The DRA ruled for subtenants and found that the overcharge was willful. Tenant and subtenants appealed. Tenant claimed that he didn't understand the rules about subletting. Tenant also claimed that he charged subtenants $1,950 when the legal rent was $1,565, because the apartment was furnished and he checked comparable rents. Subtenants claimed that the apartment wasn't fully furnished and the DRA incorrectly allowed tenant a 10 percent surcharge. The DHCR ruled against tenant, and ruled for subtenants. The apartment was only partially furnished, so no surcharge applied. But tenant's ignorance of the rent stabilization law and code didn't excuse him from overcharge liability. Rent Stabilization Code Section 2525.6(b) calls for mandatory imposition of triple damages when tenant overcharges subtenant.

Pierson/Elliot/Adani: DHCR Adm. Rev. Docket Nos. VD410054RT, VF410023RO (7/7/07)[5-pg. doc.]