Landlord Can't Change Rent Amount Due to Mistake

In 1996 landlord offered tenant a one- or two-year renewal lease, at either a 2 percent or 4 percent increase, respectively. On Nov. 19, 1996, landlord and tenant signed a two-year renewal lease, which became effective on Jan. 1, 1997. By letter postmarked Jan. 24, 1997, landlord advised tenants that the 2 percent and 4 percent renewal increases offered were a mistake because the applicable renewal increases under the current Rent Guidelines Board Order were 5 percent and 7 percent. Tenant asked the DHCR whether landlord could now charge the 7 percent renewal guidelines increase. In an opinion letter, the DHCR said no. Landlord and tenant signed the renewal lease well after the higher renewal guidelines increases went into effect. And under the Rent Stabilization Code, guidelines rent increases could only be made at the effective date of a lease. The fully signed renewal lease was binding, and landlord couldn't change the rent amount due to its mistake.

DHCR Opin. Ltr. by Charles Goldstein (3/7/97) [2-page document]