DHCR Legal Rent Review

Dear Landlords/Lawyers pls advise,  I have a particularly scrappy tenant in a rent stabilized unit that has filed a rent overcharge complaint with the DHCR. I know sometimes these things can take years to resolve. She is continuing to pay the rent from her old lease, but just a few weeks prior to filing the complaint she signed a renewal lease (with appropriate preferential rent riders) for a higher amount. The increases over the past 4 years all look legal based on the RGB specs, but we have only owned the building for about 6 months so this is our first renewal with the is particular tenant. A few questions: 1.Has anyone had experience with this? Ive read these take anywhere from 6 months to 10 years to resolve. What is the best way to deal with this situation? We’d like to avoid court if possible and will be sending the appropriate notices from the RSA and DHCR with the registered rent roll info for that unit. Should we file a non-payment suit? 2\. When the review is done by the DHCR, if there are any under-charges (say not fully accruing a vacancy increase) or overcharges does the DHCR determination include the appropriate adjustments for both sides of the table? So that a solid number is finalized.  3\. While this review is going on does the tenant have to pay her old lease amount or the newly signed lease amount (of course she thinks she has to pay the old lease amount). Thanks!!!

mrohrmann

in Mortgage 11 years and 11 months ago

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brokelin | 11 years and 11 months ago

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If you don’t want to end up in court, then don’t. If you want to resolve it, do so. Research the correct, legal rent, and charge your tenant the correct, legal rent. Simple, really.

ejalbk | 11 years and 11 months ago

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First point is if you buy a building, you have to research the DHCR records for each apartment going back to day one (1984?) before you buy. Having said that I have no idea how long these overcharge complaints take to resolve in 2013\. I wouldn’t think there can be as many going on as there were back in the 80s and 90s but they may have cut staff also. Also, I may be wrong, but I don’t think the DHCR will revise the rent upward if the landlord made a mistake somewhere along the way. Otherwise I agree with above poster. Hire an attorney and they’ll either start a non-payment or a holdover if the tenant refuses to pay the new rent. Your attorney may tell you not to accept the old check amount or endorse with “accepted without prejudice”. Good luck.

mozeeatupu | 11 years and 11 months ago

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Since the tenant has signed the renewal lease, they are oboligated to pay the new rent regardless of their overcharge complaint.  You have to give her a 3 day notice of non payment and then begin eviction proceedings. Probably best to use a lawyer. Be sure that the paperwork is up to date on your end such as rent and building registrations.