Landlord Can Stop Charging Preferential Rent

Tenant complained of a rent overcharge. Landlord had advised tenant that when his current renewal lease expired, his rent would be increased to the legal regulated rent, not the preferential rent he had been charged. Tenant claimed that there was no preferential rent set forth in his initial lease. Landlord submitted lease documents showing that there was an initial preferential rent rider and that it had registered both the preferential rents and legal regulated rents each year that tenant was in occupancy. The DRA ruled against tenant and found no overcharge. Tenant appealed and lost. Landlord showed that the legal regulated rent and preferential rent were previously established, either as set forth in tenant's vacancy lease or, since the first lease was in effect before June 19, 2003, through renewal lease and annual rent registration statements.

Martell: DHCR Adm. Rev. Dckt. No. UA210011RT (4/19/06) [5-pg. doc.]