New Tenancy Not Created

Hotel tenant complained of a rent overcharge. The DRA ruled for tenant, and landlord appealed, claiming that new tenancy was created when tenant was allowed to take in additional roommates before the ''roommate law'' was enacted. The DHCR ruled against landlord. No new tenancy was created in 1980 when landlord and tenant signed an agreement that tenant could have up to three roommates not named in the lease. A free market rent couldn't be based on an event that might never occur. And since it appears that prior to 1980 there was an implied agreement that a change in roommates wouldn't result in a vacancy increase, the lease clause allowing roommates wasn't a change from previous practice.

Daitch/Hotel Esplanade: DHCR Adm. Rev. Dckt. Nos. BI410106RT, BI410171RO (6/14/96) [4-page document]