Landlord Forgot to Add Vacancy Increase

LVT Number: 16721

Landlord's managing agent forgot to add an 18 percent vacancy increase to new rent-stabilized tenant's rent. Landlord asked the DHCR if it could add the vacancy increase once the mistake was discovered. In an opinion letter, the DHCR said maybe. If the error was discovered within a reasonable period of time, and if tenant had received a DHCR apartment lease rider that notified him that his rent was subject to a vacancy increase, then landlord might be able to add the vacancy increase and collect it prospectively but not retroactively.

Landlord's managing agent forgot to add an 18 percent vacancy increase to new rent-stabilized tenant's rent. Landlord asked the DHCR if it could add the vacancy increase once the mistake was discovered. In an opinion letter, the DHCR said maybe. If the error was discovered within a reasonable period of time, and if tenant had received a DHCR apartment lease rider that notified him that his rent was subject to a vacancy increase, then landlord might be able to add the vacancy increase and collect it prospectively but not retroactively. The DHCR would review this question on a case-by-case basis.

DHCR Opin. Ltr. by Charles Goldstein (5/9/03)