Landlord Proved Apartment Improvement Costs

Tenant complained of a rent overcharge. He moved into the apartment in 2005 and paid $2,400 per month in rent. Landlord claimed that it made individual apartment improvements before tenant moved in that cost $35,000. Landlord said that the legal rent therefore was over $2,000 per month and the apartment was deregulated. The DRA ruled against tenant, finding no overcharge. Tenant appealed. Tenant's construction consultant said that the work should have cost $26,700. Tenant said the legal rent therefore was less than $2,000. Tenant also questioned landlord's documentation and claimed that landlord's checks to contractor might have been for work on more than one apartment. The DHCR ruled against tenant. Landlord submitted a contractor's proposal, a subsequent cost breakdown from the contractor, cancelled checks, and an affidavit from the contractor to document the claimed apartment improvements. Landlord also submitted a separate invoice and cancelled checks from another contractor for demolition and waste services for the apartment. Tenant's claim about landlord's checks was speculative and not supported by any proof. Landlord wasn't required to do the work at the lowest costs, just to prove its claimed costs. Landlord adequately documented the nature and cost of the claimed apartment improvements, except for $350. Applying the statutory vacancy increase and 1/40th increase to the prior rent, tenant's legal rent was over $2,000, and the apartment was exempt from stabilization.

Leibowitz: DHCR Adm. Rev. Docket No. VK410042RT (2/14/08) [2-pg. doc.]