Utilities Not Included in Excessive Rent Charged to Subtenant

Subtenant complained of a rent overcharge by rent-stabilized tenant. The DRA ruled for subtenant and imposed triple damages. Tenant appealed, claiming that there was no willful overcharge, so there should be no triple damages. The DHCR ruled against tenant. Tenant claimed that the rent he charged subtenant included utility costs for the apartment. But the sublease signed by tenant and subtenant stated that Internet and utilities were a "separate item." And Rent Stabilization Code Section 2525.6(b) calls for triple damages whenever a tenant overcharges a subtenant. It didn't matter whether the overcharge was willful.

Sparro: DHCR Adm. Rev. Docket No. WG410069RO (10/2/08) [2-pg. doc.]