Tenant Can Avoid Eviction by Refunding Overcharge to Roommates

April 30, 2006

LVT Number: 18809

Landlord sued to evict rent-stabilized tenant for overcharging his three roommates. The court ruled for landlord. Tenant appealed and won. Tenant's legal rent was $1,954 per month. Tenant collected a total of $2,100 per month from three roommates. This was an overcharge, and tenant was wrong to believe that he was entitled to compensation in the form of rent for services and amenities he provided to his roommates. But the amount tenant collected from his roommates was not so disproportionate that it qualified as commercial exploitation.

Landlord sued to evict rent-stabilized tenant for overcharging his three roommates. The court ruled for landlord. Tenant appealed and won. Tenant's legal rent was $1,954 per month. Tenant collected a total of $2,100 per month from three roommates. This was an overcharge, and tenant was wrong to believe that he was entitled to compensation in the form of rent for services and amenities he provided to his roommates. But the amount tenant collected from his roommates was not so disproportionate that it qualified as commercial exploitation. The court further ruled that tenant could avoid eviction by refunding to each roommate any rent paid that was in excess of 25 percent of the legal rent. This was each roommate's proportionate share of the rent.

Roxborough Apts. Corp. v. Becker: NYLJ, 4/5/06, p. 28, col. 2 (App. T. 1 Dept.; Davis, Schoenfeld, JJ)

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