Landlord Can Discontinue Preferential Rent

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Tenant claimed a rent overcharge, arguing that landlord improperly increased his rent upon lease renewal in 2004. The court ruled for tenant. Landlord appealed and won. Tenant paid $600 per month under his initial lease. The initial lease didn't state that this was a preferential rent. But landlord registered the $600 rent as a preferential rent in 1999 and listed a higher legal rent. Landlord continued to register a legal rent and preferential rent for tenant each year after that, and listed a legal rent and preferential rent in each of tenant's renewal leases. So landlord proved there had been a preferential rent. Landlord properly discontinued the preferential rent in 2004 upon lease renewal, pursuant to the Rent Stabilization Law.

370 Manhattan Ave. Co. v. Seitz: NYLJ, 5/5/08, p. 29, col. 4 (App. T. 1 Dept.; McKeon, PJ, Davis, J)