Landlord Needn't Charge Preferential Rent to Pass-On Tenant

Landlord gave rent-stabilized tenant a preferential rent with her vacancy and renewal leases. Tenant's sister qualified for pass-on rights to tenant's apartment. Landlord asked the DHCR if tenant's sister had to be given a preferential rent. In an opinion letter, the DHCR said no. Rent Stabilization Code Section 2521.2(b) states that once a tenant moves out, landlord can charge the next tenant the legal regulated rent plus applicable rent increases. So as long as tenant's sister wasn't a party to any preferential rent agreement, landlord needn't charge her a preferential rent.

DHCR Opin. Ltr. by Charles Goldstein (8/21/00) [2-pg. doc.]