Collection of "Key Money" Was Rent Overcharge

May 22, 2015

LVT Number: #26192

Rent-stabilized tenant complained of rent overcharge. He claimed that landlord collected “key money” from him as a condition to giving tenant a lease. The DRA ruled for tenant and ordered landlord to refund the money. Landlord appealed and lost. Landlord claimed that he merely collected a 10 percent sublet fee for the prior period when tenant was a subtenant in the apartment.

Rent-stabilized tenant complained of rent overcharge. He claimed that landlord collected “key money” from him as a condition to giving tenant a lease. The DRA ruled for tenant and ordered landlord to refund the money. Landlord appealed and lost. Landlord claimed that he merely collected a 10 percent sublet fee for the prior period when tenant was a subtenant in the apartment. Tenant didn’t owe any sublet fee to landlord while he was a subtenant. Landlord wasn’t entitled to collect this fee.

 

 
60 West 76th, LLC: DHCR Adm. Rev. Docket No. CS410025RO (3/13/15) [3-pg. doc.]

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