DRA Improperly Updated Initial Rents for Comparable Apartments
LVT Number: 13701
(Decision submitted by Karen Schwartz-Sidrane of the Hewlett law firm of Pennisi Daniels & Norelli, LLP, attorneys for the landlord.) Tenant filed a fair market rent appeal. The DRA ruled for tenant, and landlord appealed, claiming that the DRA improperly updated the comparable rents submitted by landlord and that this resulted in an incorrect calculation of the fair market rent. The DHCR ruled for landlord. The correct way to update comparable rents, which may be rents set up to four years prior to tenant's rent, is to add one-year renewal lease guideline increases up to a date within 12 months before the rental of tenant's apartment. The amounts of the comparables are then averaged with tenant's initial rent to come up with an average comparable rent.
427 Realty LLC: DHCR Adm. Rev. Dckt. No. IC410055RO (10/8/99) [7-pg. doc.]