Landlord Can't Evict Tenant Who Overcharged Roommates

August 31, 2008

LVT Number: #20650

Landlord sued to evict rent-stabilized tenant for overcharging his roommates, in violation of Rent Stabilization Code Section 2525.7. Tenant paid landlord $973 per month in rent, but charged roommates $600 or $900 per month. He placed at least seven newspaper advertisements for roommates over a three-year period. The trial court ruled for landlord. Tenant appealed and won. The appeals court found that tenant wasn't profiteering. Also, the court pointed out that the Rent Stabilization Code didn't state that overcharging roommates was grounds for terminating tenant's lease or eviction.

Landlord sued to evict rent-stabilized tenant for overcharging his roommates, in violation of Rent Stabilization Code Section 2525.7. Tenant paid landlord $973 per month in rent, but charged roommates $600 or $900 per month. He placed at least seven newspaper advertisements for roommates over a three-year period. The trial court ruled for landlord. Tenant appealed and won. The appeals court found that tenant wasn't profiteering. Also, the court pointed out that the Rent Stabilization Code didn't state that overcharging roommates was grounds for terminating tenant's lease or eviction. Notably, one judge disagreed with the appeals court's decision.

First Hudson Capital, LLC v. Seaborn: NYLJ, 8/7/08, p. 35, col. 1 (App. Div. 1 Dept.; Mazzarelli, JP, Andrias, Saxe, Gonzalez, Sweeny, JJ)

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