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Where an apartment is not subject to rent
stabilization or rent control or other rent regulation, a landlord is free to
charge any rent agreed upon by the parties. If the apartment is subject to
such rent regulation, the rent and subsequent rent increases are set by law. A
tenant may challenge the regulated rent with the DHCR. If the challenge is
upheld, DHCR will order a refund of any overcharges plus interest and, where
appropriate, it may assess penalties.
Landlords of rent stabilized buildings may
seek rent increases for certain types of building-wide major capital
improvements (MCI), such as the replacement of a boiler, and for new services,
new equipment or improvements to an apartment in accordance with the law and
regulations. Under certain circumstances, a landlord may also apply for a
hardship rent increase.
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Landlords must provide tenants with a written
receipt when rent is paid in cash, a money order, a cashier's check or in any
form other than the personal check of a tenant. Where a tenant pays the rent
by personal check, they may request in writing a rent receipt from the
landlord. The receipt must state the payment date, the amount, the period for
which the rent was paid, and the apartment number. The receipt must be signed
by the person receiving the payment and state his or her title. A check must
"be good" for the receipt to be valid.
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It is illegal for any person to require a
prospective tenant to pay a bonus -- commonly called "key money" --
above the lawful rent and security deposit -- for preference in renting a
vacant apartment. (Penal Law § 180.55) Key money is not to be confused with
fees that may be legally charged by a licensed real estate broker. (See the
section below on "Real Estate Brokers")
RENT OVERCHARGES
In New York City and certain communities in
Nassau, Rockland and Westchester counties where rent stabilization laws apply,
the landlord may not charge more than the legal-regulated rent. Under the
housing law, landlords must register each rent-stabilized apartment with DHCR
and provide tenants annually with a copy of the registration statement.
Tenants may also get a copy of the rent history for their apartment directly
from DHCR. A tenant may only challenge rents and collect any overcharges going
back four years from the tenant's filing a complaint. The tenant is also
entitled to recover interest, plus reasonable costs and attorney's fees, for
the overcharge proceeding.
In addition, if the overcharge is willful,
the landlord is liable for a penalty of three times the amount of the
overcharge. The penalty includes the amount of the overcharge itself. The
landlord has the burden of proving the overcharge is not willful. This treble
damages penalty is limited to two years. Contact DHCR if you believe you are
being overcharged.
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