HELP! I'm getting sued by ex roommate.

[gettingby]

I have lived in a rent stabalizded apartment since 1977. Because I don't make very much money I have usually rented out my spare room. A roommate I had from August 1999 to December 2002 is suing me because I charged her over 1/2 the rent. Is this legal? What I pay in rent is my business and she would have had to pay alot more for a small studio. Is there any chance she might win and if so is the fine usually very large?

Any advice is greatly appreciated as I can't afford to loose this case!

[mjr203]

How much over their proportional share of the legal registered rent did you charge your roommate?

There is a tenant.net fact sheet about subletting and roommates
http://www.tenant.net/Tengroup/Metcounc/Mar96/sublet.html

If the subletting parts also apply to roommates who are charged more than their proportional share of the registered & current rent, then depending on how much you overcharged, you might be in trouble.

i.e. if the DHCR or a court (small claims or otherwise) found you intentionally overcharged the roommate above the proportional share (i.e. total rent/apt. occupants) and you had no signed agreement in place establishing that the roommate paid more because of bigger bedroom, addn. unique services, etc. then they may find against you for the overcharge amount with a treble penalty.

Example -- $1000 total registered rent, you decided to pay $450/month and charge your roomate $560/month for a year. The court might find for $60 x 12 months = $600 x 3 (treble penalty) = $2160.

I hope for your sake there are mitigating circumstances. I'd like to sympathize, but rent regs exist for the protection of tenants and to keep rents "afforable" and "regulated", not to allow those in RS apts to gain financial benefit by disproportionately charging roommates and/or subletting in excess of the registered rent. Your rent is your business, but roommates/subtenants paying a fair rent in the eyes of the law is also the business of the roommate/subtenant and in some cases the LL.

-POINTER

<small>[ April 28, 2003, 05:21 PM: Message edited by: pointerout ]</small>

[mjr203]

the RS code section applicable is the following:

http://www.tenant.net/Rent_Laws/rsc/rsc2525.html

Part 7, specifies about roommates, but doesn't specify if a "violation" entitles roomate to treble damages specifically.

[gettingby]

I charged $1000 for the romm and my rent is just over $660. She made good money and had no trouble affording the rent. It doesn't seem right that a person who makes so much can get money from someone like me. It's not like she had a gun to her head to take the room.

I also have a new roommate that pays the same amount. Can he doe the same thing and does this put me at risk for getting evicted?

[custudent]

You overcharged by about $670 for 41 months. Unless you gave her a furnished room or paid all utilities, or did something else to warrant charging your roommate more than 50% of the rent. If that is the case, the overcharge might be less.

That's an overcharge of around $27,000. Treble damages will be about $82,000. It is very reasonable that she will be awarded this much.

Rent stablization is not intended to create profit opportunities for tenants. You had no right to make money by overcharging a roommate. Therefore, you are not entitled to keep the profits.

Ability to pay is not the issue here. You stated that "It doesn't seem right that a person who makes so much can get money from someone like me." She is the victim in this case. She deserves her money back.

[gettingby]

She didn't fell like a victim shen she rented the room. She thought she was getting a good deal. I've put up with a lot to keep this place and why should she benefit by getting a room for $330 a month?

Doesn't anyone else feel like I am getting the shaft here?

[configdotsys]

Are there any tax/income ramifications for a tenant who is essentially earning a monthly income by overcharging a roommate?

[gettingby]

Is there a law anywhere that specifically prohibits me from doing this? The ones above seem to only address people who sublet.

You make it sound as if I am a thief. I have been doing this for years, and know of many others as well, and none of us have had problems until now. Why hasn't this been a problem befor?

[custudent]

You are misplacing your efforts. It doesn't matter whether we think you were justified in overcharging your roommate. Don't waste your time trying to justify your actions to us.

We are telling you that what you did is illegal and you are culpable to the tune of $82,000. If your current roommate gets wind of this, you are probably going to be sued for more.

Because landlords are required to report rental income to the IRS, and you did likely did not, you are probably guilty of tax evasion too.

If I were in your shoes, I would hire an attorney ASAP and try to negotiate an out of court settlement. Perhaps your former roommate would accept $27,000 to cover the overcharge and not seek treble damages.

If you go to court, a judge won't care that you think the law is wrong. He won't care that you think it doesn't apply to you because you have "put up with a lot" to keep your place.

Don't plead poverty, it isn't relevant. Also, you made $640 per month, illegally, and have lived rent free for years. Don't expect sympathy.

[custudent]

Read the following:

It means that if you have 2 occupants of a rent stabilized apartment, you may not charge the roommate more than 50% of the rent.

9 NYCRR § 2525.7
§ 2525.7 Occupancy by persons other than tenant of record or tenant's immediate family

(a) Housing accommodations subject to the RSL and this Code may be occupied in accordance with the provisions and subject to the limitations of section 235-f of the Real Property Law.

(b) The rental amount that a tenant may charge a person in occupancy pursuant to section 235-f of the Real Property Law shall not exceed such occupant's proportionate share of the legal regulated rent charged to and paid by the tenant for the subject housing accommodation.

For the purposes of this subdivision, an occupant's proportionate share shall be determined by dividing the legal regulated rent by the total number of tenants named on the lease and the total number of occupants residing in the subject housing accommodation. However, the total number of tenants named on the lease shall not include a tenant's spouse, and the total number of occupants shall not include a tenant's family member or an occupant's dependent child. Regardless of the number of occupants, tenants named on the lease shall remain responsible for payment to the owner of the entire legal regulated rent. The charging of a rental amount to an occupant that exceeds that occupant's proportionate share shall be deemed to constitute a violation of this Code.