Landlord Couldn't Deem Two-Year Lease

Tenant complained that landlord didn't renew his rent-stabilized lease on time. Tenant's last lease expired on July 31, 2001, at a rent of $766. Tenant received a renewal offer in February 2002, which tenant didn't sign. The new lease was backdated and had already incorporated a prior guidelines increase. Landlord claimed that it sent prior, timely, renewal offers to tenant but that tenant had refused to sign. Landlord claimed that it could automatically deem a two-year renewal, starting May 1, 2002. The DRA ruled that tenant's renewal lease should take effect on May 1, 2002. Tenant appealed, objecting to the lease start date. The DHCR ruled for tenant in part. The effective date of the renewal lease set by the DRA was correct. But landlord wasn't entitled to deem a two-year renewal lease instead of a one-year renewal lease. The tenant had clearly stated that he preferred a one-year renewal lease and had one-year renewal leases in the past. A deemed lease must be renewed upon the same terms and conditions as the last prior written lease. Tenant was entitled to a small refund for paying rent at a 6 percent increase under the two-year deemed renewal instead of 4 percent under a one-year deemed renewal.

Deering: DHCR Adm. Rev. Dckt. No. RE610047RT (3/3/04) [3-pg. doc.]