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illegal sublet

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illegal sublet

Postby citroidsd » Wed Jul 17, 2002 6:13 pm

Hi,

I would like to know what my rights are for the following issue:

A year ago, I moved into an apartment in NYC, the person who rented the apartment to me, was the primary tenant, and told me this would be an illegal sublet right off the bat. After moving in, I find out that the original tenant, who's name is on the lease is paying $1200, and I am paying $1500. Talking to other tenants in the building, I find out that some are paying as much as $2000. The problem is that now, the original tenant wants to charge me even more rent.

What I want to know is what my rights are? Is there any way that I can take over the apartment? The original tenant is living permanently in Queens in a house het bought, and I am getting the impression that he wants to hold onto the apartment and use the cash as extra income.

I also don't know if this apartment is rent controlled/stabilized. When I first talked to him, he said he has been on the lease since 1990, and back then he was paying around $900.

Basically, I don't know where to start, I want to hold onto this apartment, but don't know if I should talk to the landlord, or the lawyer, and if I even have any legal right to take over this apartment as the primary tenant.

thanks,

Dave
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Re: illegal sublet

Postby mjr203 » Thu Jul 18, 2002 3:22 pm

from housingnyc.com

http://www.housingnyc.com/resources/dhcr/dhcr7.html

Illusory Sublets

An illusory sublet occurs when the alleged prime tenant has not actually been in physical occupancy of the apartment. This type of case is called an illusory prime tenancy because the alleged prime tenant does not maintain the apartment as a primary residence and the sublet is intended to evade various requirements of the Rent Stabilization Law and Code.

The subtenant of an apartment in an illusory sublet situation may file a "Tenant's Complaint of Owner's Failure to Renew Lease and/or Failure to Furnish a Copy of a Signed Lease" (DHCR Form RA -90) with DHCR. If DHCR finds that the complaint is justified, it will deny the illusory prime tenant the right to a renewal lease and require the owner of the building to recognize the subtenant as the actual tenant, who is entitled to a renewal lease at the lawful stabilized rent.

In addition, the illusory prime tenant will be legally responsible to refund all overcharges collected from the subtenant. If the illusory prime tenant has furniture in the apartment, DHCR may direct the subtenant to permit the furniture to be removed. If the subtenant can prove that the building owner received part or all of the overcharge, the owner will also be responsible for refunding the rent overcharge.
most Landlords suck it.
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Re: illegal sublet

Postby mjr203 » Thu Jul 18, 2002 3:23 pm

You can also find out on that site if the building is on the rent stabilized building list.

Probably is.

-POINTER
most Landlords suck it.
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Re: illegal sublet

Postby digerati » Thu Jul 18, 2002 7:53 pm

Pointerout is correct regarding the Illusory Prime Tenant provision. Sounds correct for your situation. However, the law that the DHCR/housingnyc.com fact sheet he posted refers to is a part of the Rent Stabilization Code of 1987.

So, the question which first needs to be asked, and answered is... is your apartment rent stabilized? If not, this particular law does not apply to you. I would check directly with the DHCR at one of the borough field offices listed on this page.

http://www.dhcr.state.ny.us/ora/ora.htm

Bring a copy of your lease agreement.
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Re: illegal sublet

Postby danforth » Thu Jul 18, 2002 11:18 pm

Hmmmm, I'm in almost the exact situation that citroidsd is in. My building is rent stabilized, so the "Illusory Sublets" provision would apply to me. What I'm really wondering about is what the "lawful stabilized rent," as mentionted in the DHCR provision, would be after this process was over. The actual rent is around $1400, but I'm paying about $1900 to the lease holder. Would my rent then remain that near-$1400 sum or would it be updated, and if so, is there any way to calculate or find that sum?
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Re: illegal sublet

Postby mjr203 » Fri Jul 19, 2002 12:32 pm

most Landlords suck it.
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Re: illegal sublet

Postby digerati » Mon Jul 22, 2002 5:35 pm

Danforth,

What you're looking for is § 2525.6(b) of the RSC (linked below) which indicates it illegal for a prime tenant to overcharge a subtenant for a rent stabilized apartment. That is, unless the apartment is furnished.

"(b) The rental charged to the subtenant by the tenant shall not exceed the legal regulated rent plus no more than a 10-percent surcharge payable to the tenant if the housing accommodation is sublet fully furnished. Where a tenant violates the provisions of this subdivision, the subtenant shall be entitled to treble damages."

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

If you decide to sue your prime tenant for the overcharge and win, the court could impose 'treble' damages which would triple any damages you were to recieve. For example, lets say you've been paying $1900/mo. for 12 months.

$1900
$1400-
-------
$500

$500
x12
-------
$6000

$6000
x3
-------
$18,000

With regards to your question about the 'lawful stabilized rent' - thats another story. Your best bet is to get a copy of the rent history for the apartment from the DHCR and see the history for yourself. It could be registered with the DHCR at $900, which would double your damage total to $36,000. Who knows...

One thing to keep an eye out for, in terms of the rent that your prime tenant says he pays is the 'nice round numbers' syndrome (such as $1400/mo.). Actual rent stabilized rents should be the result for several years of odd calculations and should read something like $1398.34.

Good luck.
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