No Proof Base Rent Was Preferential Rent

Tenant complained of a rent overcharge. The DRA ruled for tenant. Landlord appealed, claiming that the DRA incorrectly used $575 as the base rent. Landlord said that this was a preferential rent and that prior tenant's legal regulated rent was $619.50. The DHCR ruled against landlord. Prior tenant's one-year lease in 1998 indicated that the legal rent was $619.50 and the preferential rent was $575. But subsequent leases for prior tenant between 2002 and 2005 listed only $575 as the rent charged. And landlord said that between 2000 and 2001, prior tenant had no lease. Rent ledgers for this period showed that prior tenant paid $575 per month on Dec. 1, 2001. This was the base rent date. Since there was no lease on the base date, landlord couldn't prove that the higher legal regulated rent was the rent that could be charged to prior tenant on that date. Therefore, the DRA had correctly used $575 as the base rent.

367 E. 201st Realty LLC: DHCR Adm. Rev. Docket No. UJ610022RO (1/16/07) [8-pg. doc.]