The DHCR recently issued Supplement No. 4 to Operational Bulletin 2005-1, updating the monthly surcharges that owners can collect from rent-controlled and rent-stabilized tenants who install their own washing machines, dryers, or dishwashers. The last update was in 2019. The DHCR says the permissible monthly surcharges take effect immediately, and it will apply them in all currently pending cases in which the owner is seeking a surcharge for one of these tenant-installed appliances. It’s important to note that the surcharge policy applies only to washing machines, dryers, and dishwashers. No surcharges can be imposed for other tenant-installed appliances such as refrigerators or garbage disposals.

We’ll tell you how much you can collect for each type of appliance and how to collect the surcharges.

New Surcharge Rates

According to the DHCR, the factors influencing the surcharge rates include the cost of heating hot water, water usage, and wear and tear on the building’s plumbing systems. The DHCR has determined these rates based on properly installed and functioning appliances in buildings equipped with adequate plumbing, water supply, and electrical systems.

The amount an owner can collect as a monthly surcharge depends on the type of appliance installed and who pays for electricity in the building. Another key distinction in the surcharge rates is whether the tenant or the owner pays for electricity. The updated surcharges will remain in effect at least through Sept. 30, 2025, and will continue to apply unless the DHCR issues further updates.

The DHCR also says that if there are any disputes arising because the owner claims that the installation of an appliance by the tenant has damaged the owner’s plumbing or other property, these types of disputes are not within the jurisdiction of the DHCR and would have to be determined by the courts if not resolvable between the parties.

Monthly Surcharges for Tenant-Installed Appliances

Appliance                                Who pays for electricity                                 Surcharge

Washing Machine . . . . . . . . . . . . . . . . . .Tenant . . . . . . . . . . . . . . . . . . . . . . . . . .$20.86

Washing Machine . . . . . . . . . . . . . . . . . Owner . . . . . . . . . . . . . . . . . . . . . . . . . . $23.38

Electric Dryer . . . . . . . . . . . . . . . . . . . . . Tenant . . . . . . . . . . . . . . . . . . . . . . . . . . $0.00

Electric Dryer . . . . . . . . . . . . . . . . . . . . .  Owner . . . . . . . . . . . . . . . . . . . . . . . . . . $9.71

Gas-Powered Dryer . . . . . . . . . . . . . . . . Tenant . . . . . . . . . . . . . . . . . . . . . . . . . . $0.00

Gas-Powered Dryer . . . . . . . . . . . . . . . . Owner . . . . . . . . . . . . . . . . . . . . . . . . . . $3.07

Dishwasher . . . . . . . . . . . . . . . . . . . . . . . Tenant . . . . . . . . . . . . . . . . . . . . . . . . . $8.85

Dishwasher . . . . . . . . . . . . . . . . . . . . . . . Owner . . . . . . . . . . . . . . . . . . . . . . . . . $13.08

When Can Owners Collect

According to Rent Stabilization Code (RSC) Section 2522.9 and the Operational Bulletin, an owner may collect a surcharge when consenting to a tenant’s installation of a washing machine, dryer, or dishwasher under the following conditions:

• Tenant requests permission: If a tenant seeks approval to install an appliance and the landlord consents, the surcharge may be collected starting from the date of installation.
• Tenant has already installed the appliance: If an owner discovers that a tenant has installed an appliance without prior consent but agrees to its continued use, the surcharge may be applied prospectively from the date of consent.

In the second scenario, owners should consider whether to collect the surcharge or explore legal options to require the tenant to remove the appliance. Consult an attorney if there are concerns about waiving rights to object to the appliance’s installation.

How to Collect the Surcharge

The surcharge should not be included in a tenant’s legal regulated rent or maximum collectible rent (MCR) for the purpose of calculating future rent increases. The bulletin states, “Such surcharge or surcharges shall not become a part of the legal regulated or maximum rent for the purpose of computing any guidelines or other increases under the Rent Laws or Regulations.” Although not required, to ensure clarity, you should list the surcharge separately on rent bills and notify tenants in writing when first applying the surcharge.

Provide copy of operational bulletin.  When first applying the surcharge, you can attach a copy of the Operational Bulletin with the notice to help prevent disputes and ensure compliance.

Tenant notification. Providing clear communication can help prevent confusion, minimize disputes, and encourage prompt payment of the surcharge. Here are two examples of language you can use for the instances when you can collect surcharges.

Example 1: Tenant Requests to Install an Appliance

I consent to your recent request to install your own washing machine in your apartment as of [Installation Date]. As a result, beginning [Billing Date], your rent bill will include a $[Applicable Surcharge] monthly surcharge for the washing machine. This surcharge is authorized by DHCR Operational Bulletin 2005-1, Supplement No. 4. A copy of this bulletin is enclosed.

Example 2: Owner Discovers an Unauthorized Appliance

We have discovered that you have installed a washing machine in your apartment without prior written consent, as required by your lease. As of [Billing Date], your rent bill will include a $[Applicable Surcharge] monthly surcharge for the washing machine, as permitted by DHCR Operational Bulletin 2005-1, Supplement No. 4. A copy of this bulletin is enclosed.

Maintenance Responsibility

The operational bulletin makes clear that owners are not responsible for servicing, repairing, or replacing tenant-installed appliances subject to surcharges. Maintenance and replacement costs remain the responsibility of the tenant. In other words, the tenant-installed appliances do not become a service required to be provided by the owner that may be subject to a rent reduction based upon decreased services.