Landlord Can End Preferential Rent upon Renewal

(Decision submitted by Gary D. Friedman of the New Hyde Park law firm of Gutman, Mintz, Baker & Sonnenfeldt, PC, attorneys for the landlord.) Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Landlord had charged tenant a preferential rent under several renewal leases. But landlord didn't offer tenant a preferential rent with the most recent renewal lease offer. Tenant didn't sign the renewal lease, and landlord deemed the renewal at a legal rent. Tenant claimed that he was still entitled to the preferential rent. The court ruled for landlord. The Rent Stabilization Law, as amended in 2003, permits landlord to discontinue the preferential rent upon lease renewal. DHCR Fact Sheet 40 further states that landlord can do so if the legal rent and preferential rent are stated in all renewal leases subject to DHCR review and if landlord has registered the legal rent with the DHCR. For the past four years, landlord gave tenant renewal leases stating both legal and preferential rents. And landlord properly registered tenant's rent every year. So landlord can discontinue preferential rent, and tenant owes legal rent under deemed renewal.

235 East 4th St., LLC v. Taing: Index No. 86569/04 (Civ. Ct. NY 2/4/05; Schneider, J) [6-pg. doc.]