Rent Overcharge Wasn't Willful

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $11,000, including interest. Tenant appealed, claiming that the overcharge was willful and that triple damages should be added to the refund. The DHCR ruled against tenant. Tenant's initial 1997 lease stated that the monthly rent was the result of subtracting $129 for "marketing purposes" from the legal regulated rent of $924. Landlord continually registered a legal regulated rent and an actual rent paid. So landlord could reasonably have believed that it had the right to begin collecting the higher rent at the start of a renewal lease term. So the DRA reasonably found that there was no willful overcharge.

Zotovich/347 Equities, Inc.: DHCR Adm. Rev. Docket Nos. YH410025RT, YH410045RO (8/22/11) [3-pg. doc.]