Legal Sublet Lease rights

[goldbourbon]

Hi,

I just legally subletted a NYC rent-stabilized apartment to someone (About 8 months ago), and we both signed a little "lease" that basically that stated the rent and the time period the sublettor would be living in the apartment. Well, after 5 months I got the rent significantly reduced (about $1000 through the DHCR). I told the sublettor about this and he was very happy to be paying a new lower rent. My questions:

1) Is the old "lease" null and void since the rent stipulated on that contract is now incorrect?

2) If I wanted to end the sublettor's sublet and move back in before the time period as stipulated on the "lease", does the sublettor have any legal recourse?

Thanks in advance.
Jack

[consigliere]

The lease with your landlord is still in effect -- just at the lower rent set by DHCR.
 
Ultimately, the rent set by DHCR should also lower the rent to the subtenant, the 10% surcharge for a fully-furnished apartment, and the 10% subletting surcharge payable to your landlord.
 
But the landlord could file a PAR, and even an Article 78 proceeding, and an appeal to the Appellate Division, to overturn the initial DHCR ruling.
 
You might want to find out if you should continue charging your subtenant the old rent, plus surcharges, and place the difference in an escrow account. If you reduce the subtenant's rent and surcharges and the initial DHCR decision is overturned or modified, you could be out-of-pocket when the subtenant moves out.
 
And no, you can't terminate the sublease, unless the sublease contains a provision allowing you to do so.
 

[goldbourbon]

ok, you missed the point, the rent has already LEGALLY been reduced to the new lower rent and the landlord has complied and we have signed all the legal documents pertaining to this. This is NOT the issue I am asking about. Since the rent is now LEGALLY reduced, do I have to create a NEW "lease" for my sublettor because the old "lease" between me and him (the sublettor) is basically incorrect now since the rent is now LEGALLY lowered due to the SUCCESSFUL outcome of my rent-overcharge complaint.

I already know all about the DHCR/PAR options, that is why I won my complaint.

Thank you,
Jack

[consigliere]

I didn't miss the point. You didn't make it clear about the finality of the lower rent set by DHCR.
 
My answers remain the same: (a) the lease with your landlord is still in effect -- just at the lower rent set by DHCR, and (b) no, you can't terminate the sublease, unless the sublease contains a provision allowing you to do so.
 
The sublease should be modified to reflect the lower rent set by DHCR, to avoid being hit with a possible overcharge complaint.