Lease Didn't Have Valid Preferential Rent Rider

Tenant complained of a rent overcharge. She paid an initial monthly rent of $910. Landlord registered the rent at a higher amount. And when landlord renewed tenant's lease, it charged more than the renewal increase permitted under rent guidelines over the initial rent charged. Landlord claimed tenant's first rent reflected a preferential rent credit offered during a slow rental market period. Landlord claimed that the rent credit was voluntary and wasn't made part of tenant's lease or any other written agreement. The DRA ruled for tenant. Landlord appealed and lost. Tenant's initial lease made no mention of a preferential rent or rent credit, and the lease had no preferential rent rider. Although the rent stabilization law was amended in June 2003 to provide that renewal of a preferential rent was at landlord's option, this provision didn't apply in this case. To prove that landlord was charging tenant a preferential rent, the higher and lower rent must both be stated in tenant's lease.

251 FT Realty LLC: DHCR Adm. Rev. Dckt. No. RF410055RO (9/24/03) [4-pg. doc.]