Landlord Can't Discount Rent Based on Timely Rent Payment

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Tenant’s legal registered monthly rent was $1,930, her preferential rent was $1,608, and a “discount rider” in tenant’s lease provided that, if paid by the fifth of the month, tenant’s rent was $1,400. Otherwise, tenant’s rent reverted to the preferential rent. Tenant claimed that the discounted rent provision was a scheme to circumvent the Rent Stabilization Law. The court ruled for tenant and found that landlord couldn’t rescind the discount during the lease based on tenant’s failure to pay rent on time. The discount rider provision was an unconscionable late charge and penalty. Landlord must charge the discounted rent even if tenant paid rent after the fifth day of the month.

Lal Little Italy Mgmt. Co, LLC v. Aldrete: Index No. 51688/14, NYLJ No. 1202737081842 (Civ. Ct. Bronx; 9/2/15; Pinckney, J)