Landlord Can Deem Renewal Lease Even if Tenant Doesn't Pay Increase

(DHCR Opinion Letter submitted by Sherwin Belkin of the Manhattan law firm of Belkin Burden Wenig & Goldman, LLP.) Landlord asked the DHCR if could deem a renewal lease when rent-stabilized tenant refused to renew but stayed in the apartment without paying a rent increase. In an opinion letter, the DHCR said yes. Rent Stabilization Code Section 2523.5(c )(5) allows landlords to deem a renewal lease if tenant doesn't respond to a proper and timely renewal offer. This applies even if the tenant doesn't pay the rent increase. Whether the deemed renewal is for one year or two years depends on the rent increase actually paid. But if tenant doesn't pay the rent increase, the term of the deemed renewal lease must be the same as that of the last lease. Landlord can then start a nonpayment case against tenant for nonpayment of rent at the rent collectible under the deemed renewal lease.

DHCR Opin. Ltr. by Charles Goldstein (12/19/02) [3-pg. doc.]