The Top Six Defenses Against A Rent Overcharge Case

You probably thought your rent overcharge case was simple – simple, that is, until your landlord’s lawyer got involved.

The landlord’s lawyer has a a vast array of weapons to defend against your overcharge case. Here are some of the most common.

1. Individual Apartments Increase. Landlord is allowed to charge 1/40^th the cost of any improvements he did to the apartment while the apartment was vacant. (But there are exceptions.)
2. "Ooops! The prior rent registrations are wrong." If DHCR finds it equitable, the landlord is allowed to file amended registrations that would have the effect of justifying the current rent after the fact. (But there are exceptions.)
3. Apartment deregulation. An apartment is no longer rent stabilized if a vacancy lease brings the rent over $2000.00. (But there are -- could it be? -- exceptions.)
4. Statute of limitations has expired. This defense is fully treated in the next section.
5. Preferential rent. If your rent history shows a large jump in the rent, the landlord may claim that the prior tenant was paying a "preferential rent", that is, a rent lower than legal maximum. The landlord will claim that the rent jump is simply a restoration of the rent to the maximum. (But there are exceptions.)
6. "Ooops! I added wrong." As a partial defense, the landlord will claim that the overcharge was the result of an inadvertent mathematical error. (But there are exceptions.)

As you probably gathered, for as many rules, there are plenty of exceptions. The landlord bears the burden of proof to establish any of these defenses. Your attorney will weigh the strength of your case as well as the landlord’s defenses.

Steven De Castro, Esq., represents tenants in rent overcharge cases. To find out how the statements made on this site may be applicable to your situation, call 212-964-5364.

Date: December 1, 2002. Steven De Castro © 2002, All Rights Reserved. The representations made are accurate to the best of the author's knowledge on the day of publication, but readers should note that laws and regulations constantly change and are subject to different interpretations. For legal advice applicable to your situation, see an attorney. This fact sheet expires one year after publication.