Landlord Can't Increase Preferential Rent During Rent-Stabilized Lease Term

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and directed a refund, including interest. Landlord appealed and lost. The DRA properly found that the initial $1,659 rent charged per month to tenant was a preferential rent for the entire lease term. Landlord claimed that it gave tenant a rent concession, not a preferential rent. But, under DHCR practice and policy, although a landlord may offer a concession rent for a specified time, such time may not exceed three months. In this case, landlord increased tenant's rent in the second year of the vacancy lease. This escalated the preferential rent, which isn't permissible. The $1,659 monthly rent remained in effect for tenant's entire lease term. 

Parsons Manor LLC: DHCR Adm. Rev. Docket No. GS110023RO (6/28/19) [3-pg. doc.]