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-   -   Return of rent on illegal rental (https://www.askmehelpdesk.com/showthread.php?t=340304)

  • Apr 11, 2009, 01:55 PM
    caphill
    Return of rent on illegal rental
    I rent a house in DC. The landlord is not in compliance with DC regulations for having a business license required for rental property. I have filed a tenant petition for illegal rent increase and a number of other issues. Will the landlord have to return the rental payments to me that were gained from the illegal rental.
  • Apr 11, 2009, 02:00 PM
    ScottGem

    Probably not. And if you are living in an illegal rental you will have to move out pretty quick.

    What will probably happen to the landlord is he will be fined for violating housing regs and his assessed value will go up meaning he will probably owe back taxes. But you will see none of that. You will simply be forced to vacate.
  • Apr 11, 2009, 02:14 PM
    caphill
    Quote:

    Originally Posted by ScottGem View Post
    Probably not. And if you are living in an illegal rental you will have to move out pretty quick.

    What will probably happen to the landlord is he will be fined for violating housing regs and his assessed value will go up meaning he will probably owe back taxes. But you will see none of that. you will simply be forced to vacate.

    The landlord has collected 2 yrs of rent without obtaining a business license that is required to operate a rental business. This requirement applies to anyone who has a rental property whether a single family or a multi unit property. The landlord has gained income from the rental business without a license. This has no effect on the taxes assessed on the property. I am required to pay rent in accordance with the lease but the landord is not legal to charge any rent without a business license.
  • Apr 11, 2009, 06:26 PM
    Fr_Chuck

    As long as you had no reason to believe it was illegal before, But actually yes often you can after you move, sue for back payments, since in many states a person can not profit from a illegal activity.
  • Apr 11, 2009, 06:33 PM
    ScottGem
    Quote:

    Originally Posted by caphill View Post
    The landlord has collected 2 yrs of rent without obtaining a business license that is required to operate a rental business. This requirement applies to anyone who has a rental property whether a single family or a multi unit property. The landlord has gained income from the rental business without a license. This has no effect on the taxes assessed on the property. I am required to pay rent in accordance with the lease but the landord is not legal to charge any rent without a business license.

    Your point? Actually it has a lot to do with taxes. Commercial property is assessed differently from residential proiperty. So if he hasn't gotten a license to operate a rental business then the property has probably not been assesed properly.

    If you think the fact that he operated a business without a license means you will get a refund you are mistaken. You recevied value for your rent, namely a roof over your head. If he was illegally operating the business, then he is subject to fines for doing so, but its not going to get you a refund.
  • Apr 11, 2009, 06:41 PM
    ScottGem

    I have to disagree with Chuck. But please feel free to consult an attorney or file suit. I doubt if you will win.
  • Apr 12, 2009, 01:57 PM
    caphill
    Quote:

    Originally Posted by ScottGem View Post
    Your point? Actually it has a lot to do with taxes. Commercial property is assessed differently from residential proiperty. So if he hasn't gotten a license to operate a rental business then the property has probably not been assesed properly.

    If you think the fact that he operated a business without a license means you will get a refund you are mistaken. You recevied value for your rent, namely a roof over your head. If he was illegally operating the business, then he is subject to fines for doing so, but its not going to get you a refund.

    The rental is a residential house not a commercial property. A business license is required to operate a house as a rental and subject to an inspection to see that it meets the safety and fire codes established by DC for residential rentals. The value and/or assessement of the house is the same whether owner occupied or rented. If owner occupied, an owner can get a small break on taxes by filing for a Homestead Exemption that is not available on a rental property.

    My guestion was based on the fact the landlord had no legal right to charge any rent until the property was property registered, inspected and a business license issued. My lease agreement is a contractual agreement that reguires that I pay rent and it was represented in the lease that the property was a properly registered rental. That was a mispresentation on the landlord part.
  • Apr 12, 2009, 02:14 PM
    ScottGem

    And my answer doesn't change. I've seen this happen before. The fact that the rental was illegal is a matter between the licensing authority and the landlord. The landlord is subject to fines for operating an illegal rental. That does not mean you are entitled to a refund!

    But if you want to waste your time taking this to court, then go ahead. You asked for advice and I gave you my answer. I know its not the answer you wanted, but I stand by it.

    Two years of rent probably puts this beyond small claims court. So you will need a lawyer to pursue this.

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