Tenant's Legal Rent Reduced Based on Improper Rent Discount Clause in Lease

September 25, 2019

LVT Number: #30376

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant. Landlord appealed and lost. Landlord argued that the legal regulated rent on the base date was $1,872, while the $1,400 rent paid by tenant was a preferential rent. But the $1,400 rent was actually a discounted rent charged on condition that tenant paid the monthly rent on time. This was "an unconscionable late charge and penalty." So, tenant's legal rent was reduced to the amount of the actual monthly rent paid as a result of the discount clause.

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant. Landlord appealed and lost. Landlord argued that the legal regulated rent on the base date was $1,872, while the $1,400 rent paid by tenant was a preferential rent. But the $1,400 rent was actually a discounted rent charged on condition that tenant paid the monthly rent on time. This was "an unconscionable late charge and penalty." So, tenant's legal rent was reduced to the amount of the actual monthly rent paid as a result of the discount clause.

133 W 145, LLC: DHCR Adm. Rev. Docket No. GS410052RO (7/24/19) [2-pg. doc.]

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