Landlord Didn't Prove Cost of IAIs Resulted in Deregulation

LVT Number: #31125

Tenant sued landlord and prior landlord, claiming rent overcharge and improper deregulation of her apartment. The trial court ruled for tenant, finding that the proven cost of individual apartment improvements (IAIs) was insufficient to remove the unit from rent stabilization.

Landlord appealed and won. The appeals court found that landlords had presented sufficient proof of IAI costs that supported vacancy deregulation of the apartment before tenant moved in. Two of the five judges on the Appellate Division panel disagreed.