Landlord Can't Charge Market Rent After Eight-Year Vacancy

Landlord sued to evict rent-stabilized tenant for illegal subletting. Tenant claimed that she didn’t sublet the apartment. She said that she traveled a lot because she worked as a model and that her mother stayed at the apartment. Tenant also claimed a rent overcharge. The court ruled for tenant and against landlord. Landlord testified that neighbors complained about noise and presented videotapes showing people coming and going from the building. This didn’t prove illegal subletting, and landlord offered no solid proof. Landlord argued that there was no rent overcharge because the apartment had been vacant for eight years before tenant moved in. The prior rent was $513. Landlord charged tenant $1,700 in October 2007 when she moved in. Landlord claimed that this was permitted. The court disagreed. Landlord registered the vacant apartment at $513 in April 2007. Nowhere does the Rent Stabilization Code permit landlord to charge free-market rent after an apartment has been registered vacant for eight years. The court found that the overcharge was willful and ordered landlord to refund over $42,000.

Torres v. Mchedlishvili: NYLJ, 7/22/09, p. 26, col. 1 (Civ. Ct. NY; Lebovits, J)