Property Grunt

Monday, May 30, 2005

Girls wanna have fun and sue for cheap rent

Looks like Cyndy Lauper has joined the fray in the real estate world by filing alawsuit against owners of a luxury apartment over their rents stabilized sublet.

Here's the story on this link.

In my opinion Cyndi and her husband did get ripped off. According to the New York City Rent Guidelines Board

the prime tenant may not demand "key money" or overcharge the subtenant (you). If the prime tenant overcharges, you may file a "Tenant's Complaint of Rent Overcharge and/or Excess Security Deposit" (DHCR Form RA-89). If DHCR finds that the prime tenant has deliberately overcharged you, then he may be required to refund to you three times the overcharge. Check out the "fact sheet" on our site.

The Court sided for Cyndi

In 1996, the Thorntons sued Baron, seeking to recover what they paid in excess of the legal stabilized rent plus damages. In 1999, 390 West End moved to vacate the judgment it won in getting the apartment exempted from rent stabilization on the grounds its agreement with Baron was illegal. That motion, which ended the lease with Baron, was granted in 2000.

Subsequently, the Thorntons sued 390 West End, seeking to get their rent reduced to the stabilized price of $508 a month.

Supreme Court ruled in favor of the Thorntons except for the manner of determining rent. The court determined that the four-year limitation period adopted in the Rent Regulation Reform Act of 1997 precluded it from considering the rent history before 1996, four years before the Thorntons' suit against the building owner.

However, the court rejected 390 West End's argument that rent should be set at the $2,400 a month Baron agreed to pay. Instead, the court used a default formula adopted by the Division of Housing and Community Renewal to determine rent should be set at $989 a month.

Have a happy memorial day!