Landlord Didn't Prove Tenant Was Charged Preferential Rent

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $7,521, including triple damages. Landlord appealed and lost. Landlord failed to prove that tenant had a preferential rent. The preferential rent rider in tenant's vacancy lease stated that prior tenant paid a legal rent of $1,541. But lease records showed that prior tenant paid $1,122. Tenant's rent therefore was based on an illegally high rent. So tenant's legal rent became the $988 per month actually charged and paid by tenant. Landlord also didn't submit any lease records documenting both legal regulated rents and preferential rents. So the DRA properly found that tenant's legal rent was $988 under his vacancy lease, that no higher legal rent had been preserved, and that all subsequent rents should be based on such legal rent.

725 Southern LLC: DHCR Adm. Rev. Docket No. GS610024RO (7/9/19) [4-pg. doc.]