Must Preferential Rent Agreement Continue?

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Tenant claimed that landlord was improperly seeking payment of the legal regulated rent in spite of tenant’s preferential rent agreement. The court ruled for tenant and dismissed the case. Landlord appealed. The appeals court reopened the case and sent it back for a hearing. Tenant’s initial lease contained a rider stating that landlord agreed to rent the apartment “at a preferred tenant rate of $600 monthly in lieu of rehab to be done by tenant.” After that, landlord periodically renewed tenant’s lease based on the preferential rate. The terms of the preferential lease rider seemed to be open-ended, but the court couldn’t determine the parties’ intent from the lease rider. A hearing was needed to find the facts.

East Side Managers Associates, Inc. v. Goodwin: NYLJ, 7/8/09, p. 35, col. 2 (App. T. 1 Dept.; McKeon, PJ, Heitler, Shulman, JJ)