Stuck in a sublease need help ASAP!

[thekristians]

Hello-

So let me break down my situation for you. Basically my roommate signed a lease for our apartment (a lease that may or may not allow for subletting I'm not actually sure at this point all I know is from the copy he gave me of his lease the section that forbids subletting is crossed out and he claims that he is allowed to sublet). Then he found my boyfriend and I, as well as another roommate to sublease the other two bedrooms in this apartment. He specifically told us the price of each bedroom (different sizes so the apartment was priced accordingly) and told us the total amount of rent each month (which equaled the three bedroom rents combined). He had confirmed numerous times how much the entire apartment was renting for.
Well, low and behold we found out that he was lying and has actually been paying somewhere around $700 a month while my other roommate pays $1750 a month and my boyfriend and I pay $1650 a month (which means he completely lied when he said the entire apartment was renting for $5400 and that he was paying $2000 a month). Clearly we all want out of this situation but he claims that he assigned the bedrooms rent as he saw them fit and since we signed a sublease contract with him we are stuck in the lease. Is this true? Isn't this illegal? He's basically making money off of an apartment that he doesn't even own which has to be some sort of fraud. We were very naive coming into this sutation and now are stuck in a terrible situation. We cannot work this out on our own and I need some sort of advice on what to do next. He also has 2 months of security deposit ($3300) so that is what is stopping me from just moving out today. Any advice?

[TenantNet]

Are you certain the unit is not rent regulated? If so, how do you know?

How do you know the true price of the unit ... the rent he's paying to the landlord?

What is the nature of the lease or agreement you signed with him? Any mention of the word "license?"

Also, what you describe is not a sublease; you're a roommate AKA licensee or occupant. A sublet is when the prime tenant leaves for a period of time with the intent to return.

[thekristians]

I am not certain if the rent is regulated or not. From the copy of the blank lease he provided us with that is the least between him and the building the part about rent stablization is crossed out. I would assume that it is not rent regulated.

About the true price to of the apartment. We at first (naively) believed that the apartment was the amount he originally stated it was. Then we found an old receipt that he wrote out to the building for a much lower rent. We confronted him on this issue, he first lied and then confessed that the actual rent of the apartment was the lower price.

The "agreement" we signed begins... "This agreement is a legal and binding contract between me (the "subleasor") and him (the "leasor", and together with the subleasor, the "roommates") It also states that the purpose of this agreement is to define the rights and obligatuions between the roommates. There is no mentioning of the word license at all. Any adivce?

Half of the problem is that he's a lawyer so he feels as though he has so much authority over us in this situation because he can manipulate the laws since he knows them.

If this is not a sublease but instead a roommate, what rights do we have?

[TenantNet]

I am not certain if the rent is regulated or not. From the copy of the blank lease he provided us with that is the least between him and the building the part about rent stablization is crossed out. I would assume that it is not rent regulated.

Don't assume anything. If the building was built prior to 1974, has 6 or more units, is not a coop/condo and has not been deregulated, then there's a chance it should be regulated ... and you would likely have greater rights to a refund and penalties.

And if he's paying a relatively low price, then that's even more evidence it's regulated.

Call DHCR to find out.

[thekristians]

I just found a part of the lease that states "It is undersootd and agreed as follows: (a) The apartment is not subject to the Rent Stablization Law ("RSL") or the Emergency Tenant Protection Act of 1974 ("EPTA") by rason of a new tenancy occuring in the Apartment after expiration of the period in which the Building received teax benefits pursuant to Real Property Tax Law Seciont 421-a. Acoordingly, the rent set forth in paragraph 3 of the printed portion of this Lease is a "free-market" rent. Nothing in the Lease shall be interpreted as giving You an option to renew this Lease or subjecting this Lease or the Apartment to the Rent Stablization Law or any other form of rent regulation......"


I'm guessing this means that the rent is not stablized. Should I still try to contact the DHCR? If so what should I be saying or asking? Do we still have a case or no?

[TenantNet]

When was the building constructed?

[thekristians]

1975 it's called Rivercourt in NYC midtown

[TenantNet]

First, you can move out anytime. The question is would you be liable for the rent for the remainder of the term.

But I'm not convinced the lease -- as you describe it -- is enforceable. But that would entail a full reading of the lease and whether what is a licensee situation can be set in a LL/T lease. If he represented to you that your share of the rent was a portion of the rent paid to the LL, then there might be a claim of fraud and misrepresentation. But if the rent is that low, then why is that so? If the unit was formerly RS, then what's keeping the real rent low?

Chances are you are not stabilized, not because they say so, but if the bldg was constructed in 1975, it would not be subject to regulation. It appears it was a recipient of 421(a) tax abatement, which would have rendered it RS for a period of years while the mortgage was outstanding. I suspect that's expired. I would still check with DHCR on the 421(a) status. If it was RS you would have greater rights on an overcharge.

I would keep digging around. Talk to the neighbors about the history of the unit. You might wish to talk to the LL, but that might not work for you.

[thekristians]

Basically my "roommate" the guy who we are leasing through is an asshole. We tried to bargin with him today by giving up one of our security deposits in order to lower the rent and only require the next person to move in our place to give one month in security deposit. He is absolutely not willing under any circumstances to come to a fair agreement with him on this situation except for finding someone to pay the full amount and 2 months security deposit (which is CLEARLY unfair because the room is not worth $1650 a month because he was lying about the cost of the apartment in the first pace). Any advice? Is there anyone I could send some of the agreement we signed to help me try to fight this case?

[lofter1]

Just don't pay March rent. Lie. Tell him you'll get it to him as soon as you can. Do the same in April. If he locks you out he'll be breaking the law. By the end of April you'll be caught up and can move out.

If he tries anything illegal or unethical (sounds like already has done that) then tell him you'll submit a complaint to the Departmental Disciplinary Committee (they oversee the behavior of lawyers in NYS).

It doesn't sound like he's going to give you a good referral when you move on anyway.

When fighting with an AHole, sometimes it's best to use AHole rules.

[thekristians]

That's great advice thank you! I'm also looking for extra loop holes to get around this or to potentially use against him. For example... it states in our agreement that he would be allowed to auction off our belongings if we vacate the premises and our belongings remain after 10 days. Is this provision contrary to NY law? I know a lot of states generally prevent a landlord from this type of retaliation against a tenant. Usually it's just that they can throw away our belongings or store them and charge us the fee, is that true for NY? Do we have something here?!?!?!

[lofter1]

I'm not a lawyer, but once you've established occupancy beyond 30 days then you have all sorts of legal rights as a tenant. This Co-Occupant / Lawyer / Roommate must honor those rights or else be in violation of the law.

The legal term "Vacate" may have meaning way beyond the simple solution that your Roommate has inserted into the lease.

I suggest you search around the Tenant Net website (use the "Search Forum" option above and, for starters, search 'Roommate'). It will give you lots of info.

[TenantNet]

Actually the person is an occupant, a licensee, and does not establish any rights as a tenant.

[lofter1]

Thanks for the clarification.