Landlord Can Discontinue Preferential Rent

Rent-stabilized tenant complained of improper lease renewal. Tenant noted that his initial lease contained a preferential rent clause. Tenant claimed that landlord improperly discontinued the preferential rent upon renewal. The current renewal lease offer applied the rent guideline increase to the legal rent rather than to tenant's preferential rent. The DRA ruled against tenant because the initial lease contained no specific clause setting the preferential rent as the base rent for the balance of the tenancy. Tenant appealed and lost. Contrary to tenant's claim, his initial lease didn't state that the preferential rent would remain in effect for the entire tenancy. So landlord wasn't required to continue charging the preferential rent plus guidelines increases upon lease renewal.

Blaise: DHCR Adm. Rev. Docket No. XE210001RT (8/12/09) [2-pg. doc.]