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So I live in a rent stabilized building. Apparently my unit and the unit behind me were originally one apartment and split into two in 2012, prior to me moving in.
I requested the rent history from DHCR. Apparently the old owner registered both me and the tenant behind me as if we were living in one unit (the old, presplit unit) and listed a regulated rent of the combined rent (which is over $2,500). Now, we live in two separate apartments with separate entrances and no common areas.
In the case of splitting an apartment in two (and therefore creating two new units), what would determine the initial rent for each unit? Would it be a proportional split of the legal regulated rent of the old pre-split unit?
Here is the rent history of the unit:
2010 Rent Stabilized -- Occupied by Joe Schmoe -- Legal rent $1650
2011 Vacant -- Legal rent $2050
2012 Vacant -- Legal rent $2050
2013 Rent Stabilized -- Occupied by myself and other tenant -- Legal rent $2900
2014 -- Nothing registered
In this case, wouldn't the 16% increase the owner applied mean the total rent after vacancy would be $2050. So the rents (assuming an even split) would be $1025 for each unit? This would mean I was overcharged by $500 per month each year. I'm within the 4 year statute of limitations, so should I be able to fight for rent overcharge?
I've already established with an attorney that the owner should have absolutely filed separate rent registration forms with the DHCR and that my unit is definitely rent stabilized.
I really have no idea, but that doesn't sound legal to me. Sounds like he's trying to shadily get the apartment out of stabilization. You and the other tenant are each paying $2900?
That must have been one large apartment if he was able to split it into 2 separate units!
I believe once the apartment has been "altered" it no longer falls under stabilization. Moving a wall here and there and it's no longer the same apartment, so not stabilized.
According to the attorney we met with, rent stabilized status is established by the following facts: If a building is built prior to 1974, has more than 6 units, and the rent is below $2,500 then the unit is rent stabilized.
After making this alteration, each apartments was rented for under $2,500. As such, they are absolutely rent stabilized.
The more important question is can the landlord charge a rent for each unit the amount he did -- $1,500 -- or does it have to still be based off the original unit's history.
I believe once the apartment has been "altered" it no longer falls under stabilization. Moving a wall here and there and it's no longer the same apartment, so not stabilized.
No, it's not that easy or more landlords would be trying.
I know one building that did and they have just begun to discover what can happen if investigations are launched.
Last edited by Harlem resident; 04-01-2015 at 02:30 PM..
According to the attorney we met with, rent stabilized status is established by the following facts: If a building is built prior to 1974, has more than 6 units, and the rent is below $2,500 then the unit is rent stabilized.
After making this alteration, each apartments was rented for under $2,500. As such, they are absolutely rent stabilized.
The more important question is can the landlord charge a rent for each unit the amount he did -- $1,500 -- or does it have to still be based off the original unit's history.
Your lawyer cannot help here ? Because this sounds like one of these gray areas invented by landlords. They are best probed by lawyers, and good ones at that. It can definitely be worth it.
I would add that for pursuing rent arguments and claims, housing court is vastly preferable to DHCR. DHCR is far from tenant friendly, in fact, many are openly hostile to regulation and you will be "advised" accordingly - the tenant is always a whining scammer. DHCR is the only venue for rental histories but you are in no way obligated to pursue anything with them.
Advice before the fact - ignore the loonies and bitter ranters who will try scare tactics and misinformation any moment.
Could call Met Council on Housing as well. They are a bit overextended though to put it mildly.
Pursuing such things benefits not just you but people coming after you who may need affordable housing.
First Rent: The owner of a stabilized housing accommodation may
be entitled to charge a market rent when first renting the
apartment after performing qualifying rehabilitation and
alteration to an apartment. Subsequent rents are subject to
guideline increases. "First Rents" will be granted when a housing
accommodation has been created which can be said not to have
existed on the "base date." Examples where first rents apply are:
where one apartment has been divided into two; two apartments
have been combined into one; or a bedroom from another apartment
has been added on to the subject apartment. Rearranging walls
within the original apartment does not constitute a
rehabilitation qualifying for a "first rent."
So it sounds pretty clear that both units are rent stabilized and that the initial, rent stabilized rent was what was first charged. Now that rent amount can't increase by more than what the rent stabilization guidelines provide for.
Sounds like if two units are combined and the first rent is over $2,500, that would be a basis to take the apartment out of rent stabilized status onto market rent.
First Rent: The owner of a stabilized housing accommodation may
be entitled to charge a market rent when first renting the
apartment after performing qualifying rehabilitation and
alteration to an apartment. Subsequent rents are subject to
guideline increases. "First Rents" will be granted when a housing
accommodation has been created which can be said not to have
existed on the "base date." Examples where first rents apply are:
where one apartment has been divided into two; two apartments
have been combined into one; or a bedroom from another apartment
has been added on to the subject apartment. Rearranging walls
within the original apartment does not constitute a
rehabilitation qualifying for a "first rent."
So it sounds pretty clear that both units are rent stabilized and that the initial, rent stabilized rent was what was first charged. Now that rent amount can't increase by more than what the rent stabilization guidelines provide for.
Sounds like if two units are combined and the first rent is over $2,500, that would be a basis to take the apartment out of rent stabilized status onto market rent.
I would look into things with a good lawyer.
Internet research is usually a waste of time except to discover basic rights. So many things are decided in the courts.
I should add - the key phrase is "qualifying rehab work." Creative paperwork is filed all of the time, and nobody checks - unless, that is, tenants pursue something.
The system for rent increases after "renovations" works on the honor system, as does deregulation. It is often added that there is a statute of limitations for pursuing overcharges, however, there have recently been a few big cases where this was over-ruled in the tenant's favor.
Hi, bumping this up, was the original poster DBL185 able to resolve the issue?
Thanks!
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