Tenant Charged Preferential Rent in Exchange for Move

LVT Number: 8542

Tenant complained of a rent overcharge. The DRA ruled for tenant, and landlord appealed. Landlord had given tenant a preferential rent to get her to move out of her old apartment into a larger apartment. Tenant agreed to pay a 10 percent rent increase each year until the legal rent was reached. The DHCR ruled against landlord. Under the Rent Stabilization Code, if tenant is given a preferential rent, landlord can't raise the rent back up to the legal rent until tenant moves out.

Tenant complained of a rent overcharge. The DRA ruled for tenant, and landlord appealed. Landlord had given tenant a preferential rent to get her to move out of her old apartment into a larger apartment. Tenant agreed to pay a 10 percent rent increase each year until the legal rent was reached. The DHCR ruled against landlord. Under the Rent Stabilization Code, if tenant is given a preferential rent, landlord can't raise the rent back up to the legal rent until tenant moves out. Then, to bring the rent back up, landlord can add guidelines increases that would have been allowed while tenant lived in the apartment

568 Amsterdam Avenue, Apt. 2N: DHCR Adm. Rev. Dckt. No. CB 410090-RO (12/24/93) [2-page document]

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