In the rental property business, there's a term called "fair market use and occupancy." Imagine you're a tenant caught up in a legal dispute with your landlord. The court might order, "You still have to pay your monthly rent to the landlord." This ongoing payment is what they call "use and occupancy," and it's supposed to be a fair amount reflecting what the property is worth in the market.
So, when a landlord decides to move a tenant out and takes them to court, they usually ask the court to tell the tenant to keep paying rent during the legal back-and-forth. Unless there's a really rare reason not to, the court will order these use and occupancy payments. The amount? Well, it's usually the same as what's written in the lease agreement—the agreed-upon rent.
Landlords usually hope for more than just rent money. See, if a tenant overstays their welcome after being told to leave, the landlord can't just find a new tenant and charge them the going market rate. The law prevents that. So, after the legal battle ends and the original tenant finally moves out, the landlord might ask the court to make the tenant pay the difference between what they were actually paying and what the property is worth in the market. It's a way for the landlord to make up for the potential lost income during the time the tenant overstayed.
Romeo J. Boatswain, Esq., points out that there was this recent case, Sixty Second v. Minuto, that went to the Appellate Term, First Department. The court basically said, “You can't change your mind later." In this case, the landlord had initially agreed to accept use and occupancy payments at the current rent through a legal agreement called a stipulation. However, they didn't include a line saying, "This doesn't mean we can't ask for more later." Because of that missing piece, the court decided the landlord had given up the right to claim the higher fair market use and occupancy.
The lesson here is pretty clear, and it applies to both landlords and tenants. When you're making deals about use and occupancy payments, you've got to be crystal clear about whether you're giving up any rights for the future. If there's no mention that these payments won't affect any future claims, you might find yourself in a situation where the court thinks you've given up your right to ask for more later.
In simpler terms, use and occupancy are like temporary rent that keeps things fair during legal fights. It ensures the landlord gets some money for their property while the tenant is still there. But, and this is a big but, everyone needs to be careful about the details in these agreements. If you don't spell out that you might want more money later, you could be waving goodbye to that opportunity in the future.
So, next time you're in a legal fight with your landlord or tenant, remember: be clear, be careful, and make sure you're not accidentally giving up your rights down the road. It's the key to watching your step and reading the fine print.
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