Insufficient Proof of Base Date Rent

Tenant complained of a rent overcharge. Landlord claimed that there was no overcharge. Landlord said that the base date rent in effect four years before tenant filed his complaint was $1,600 per month. Tenant's rent, after adding a vacancy increase and an apartment improvement cost increase was $2,100 per month. Landlord charged tenant a preferential rent of $1,500. The DRA ruled against tenant, finding no overcharge. Tenant appealed, claiming that landlord didn't prove the base date rent. The DHCR ruled for tenant. On April 1, 2002, the registered rent for the apartment was $1,250. Landlord claimed that, by the base rent date of July 18, 2002, the prior tenant who paid $1,250 had moved out before the lease's expiration and a second prior tenant paid $1,600. Landlord submitted a rent ledger showing that $1,600 was collected on July 1, 2002. But, by October 2002, the second prior tenant was in arrears, and landlord sought his eviction. Landlord submitted no lease or proof of an eviction proceeding for the second prior tenant. Tenant moved into the apartment in March 2003. There was insufficient proof of the second prior tenant. The base date rent was set at $1,250. The lease for the prior tenant in occupancy on April 1, 2002 was still in effect on the base rent date. Tenant's legal rent was reduced from $2,100 to $1,950. However, there was no actual overcharge because tenant paid a preferential rent of $1,500.

Herrmann: DHCR Adm. Rev. Docket No. VE410043RT (9/18/07) [5-pg. doc.]