Rent Charged Tenant Was Legal Regulated Rent

July 31, 2007

LVT Number: #19811

Tenant complained of a rent overcharge when landlord sought to renew his lease at an amount that was more than the current rent plus applicable guidelines. Landlord claimed that tenant's prior rent was a preferential rent. The DRA ruled for tenant. Landlord appealed, claiming that prior landlord gave tenant preferential rent because he didn't charge tenant the full amount permitted through collection of 1/40th increase. The DHCR ruled against landlord. There was no preferential rent agreement contained in tenant's initial lease.

Tenant complained of a rent overcharge when landlord sought to renew his lease at an amount that was more than the current rent plus applicable guidelines. Landlord claimed that tenant's prior rent was a preferential rent. The DRA ruled for tenant. Landlord appealed, claiming that prior landlord gave tenant preferential rent because he didn't charge tenant the full amount permitted through collection of 1/40th increase. The DHCR ruled against landlord. There was no preferential rent agreement contained in tenant's initial lease. So landlord must base any renewal lease increase on rent actually charged in that lease.

Savoy Park Owner LLC: DHCR Adm. Rev.Docket No. VB410065RO (5/9/07) [4-pg. doc.]

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