Tenant Overcharged Subtenant by Charging Key Money

Subtenant complained of a rent overcharge. She paid rent-stabilized tenant monthly rent of $1,350 under a sublease approved by landlord. But she also paid tenant $1,400 in “key money,” which she claimed was an overcharge. She claimed that $1,350 represented one month’s extra rent and another $50 was for tenant’s used microwave oven. Tenant claimed that the $1,400 covered his costs to buy curtains, a microwave oven, air conditioner, trash cans, beds, bed frames, and a shower curtain for the apartment. Tenant argued that he could have charged subtenant more rent for the use of these furnishings. The DRA ruled for subtenant, found that the overcharge was willful, and ordered tenant to refund $4,050. Tenant appealed and lost. Tenant submitted no proof of the cost of the furnishings he claimed he provided. Subtenant told the DRA that, other than tenant’s used microwave, she bought her own furniture. She submitted to the DRA a sworn statement from the building super saying that tenant had “lived out of a suitcase” and never furnished the apartment.

Bakane: DHCR Adm. Rev. Docket No. WE410083RO (11/14/08) [4-pg. doc.]