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Can Parties Stipulate As to Whether An Apartment Is Rent-Stabilized?
Legal disputes as to the rent regulated status of an apartment are as old as rent regulation itself. On occasion, landlords and tenants have purported to "agree" in a lease or stipulation as to whether a unit is regulated. This article surveys case law as to how courts treat such agreements.
|Statutory Coverage Is a Matter of Law, and Cannot Be Waived
Rent stabilization coverage is a matter of statutory right and cannot be created by waiver or estoppel. See, Matter of Trainer v. New York State Div. of Hous. & Community Renewal, 162 AD3d 461, 462 (1st Dept. 2018). Nor can coverage be created by agreements between landlords and tenants. RSC §2520.13, captioned "Waiver of Benefit Void," states that "[a]n agreement by the tenant to waive the benefit of any provision of the RSL or this Code is void." As the First Department held in Drucker v. Mauro, 30 AD3d 37, 39 (1st Dept 2006):
"It is well settled that the parties to a lease governing a rent-stabilized apartment cannot, by agreement, incorporate terms that compromise the integrity and enforcement of the Rent Stabilization Law. Any lease provision that subverts a protection afforded by the rent stabilization scheme is not merely voidable, but void."
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