Landlord Can't Charge Rent-Stabilized Tenant for Water Usage

Rent-stabilized tenant complained to the DHCR of a rent overcharge based on water charges collected by the landlord. The DRA ruled for tenant and ordered landlord to refund any water usage charges paid by tenant.

Landlord appealed and lost. Landlord argued that tenant signed a Water Usage Rider as part of his vacancy lease, that the apartment was submetered for water usage, and that tenant agreed to pay for the water. Landlord also claimed that RSC Section 2522.10 permitted landlords to charge for utility services, and that the Code didn't limit utility charges to electricity, cable, and telecommunications. 

The DHCR disagreed. RSC Section 2520.6(r) provided that hot and cold water is a required service to be provided to tenants by a landlord. And, under RSC Section 2520.13, a tenant can't waive a benefit provided under the Rent Stabilization Law. So tenant's agreement to pay water charges was void. So landlord can't pass on the water usage costs to tenant. There also was no proof that landlord applied to the DHCR for permission to decrease required services via submetering water usage in apartments or that the DHCR would permit a landlord to do so. To the extent that landlord may have found a case where the DHCR ruled differently, the DHCR would not follow that prior ruling. [Download PDF of decision here.]

Earth Leasing Properties LLC: DHCR Adm. Rev. Docket No. MW110032RO (3/25/25)[2-pg. document]