Rent Concession Rider Providing for Late Payment of Rent Was Improper

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. The court ruled for landlord based on tenant’s default but later granted tenant’s request to vacate the default judgment. Landlord appealed and lost. Tenant showed good cause to vacate the default judgment. Tenant’s lease included a rent concession rider, which stated that, while tenant’s legal monthly rent was $1,339, tenant could pay a reduced rent of $1,185 provided she paid her rent by the fifth of the month. The court found that the rent concession was a preferential rent and, as such, couldn’t fluctuate monthly. The rent concession rider in effect called for a 13 percent late charge, which was excessive. The court properly vacated the default judgment.

Diversified Equities, LLC v. Russell: 50 Misc.3d 140(A), 2016 NY Slip Op 50177(U) (App. T. 2 Dept.; 2/10/16; Pesce, PJ, Weston, Aliotta, JJ)