Landlord Can Increase Preferential Rent Upon Lease Renewal

Rent-stabilized tenant complained of rent overcharge. The DRA found no overcharge and dismissed the complaint. Tenant appealed and lost. Tenant’s lease provided for a preferential rent. Upon lease renewal, landlord increased tenant’s preferential rent by the amount of the rent guidelines then in effect. Tenant claimed that landlord wasn’t entitled to increase her preferential rent. But neither the Rent Stabilization Code nor tenant’s lease barred landlord from increasing the preferential rent charged upon lease renewal. Tenant’s preferential rent rider states that the preferential rent would remain in effect throughout the tenancy, “subject to adjustment in accordance with the Rent Stabilization Law.” And the Rent Stabilization Code permits landlord to increase the preferential rent to any rent that doesn't exceed the legal regulated rent.

Goodman: DHCR Adm. Rev. Docket No. DO410011RT (6/10/15) [3-pg. doc.]