Landlord Didn't Identify Preferential Rent in Vacancy Lease

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant. Landlord appealed and lost, claiming that the calculation of any overcharge should be based on a higher legal regulated rent, not the preferential rent charged to tenant. But there was no preferential rent. The apartment was advertised at $1,375 per month. Tenant offered to pay $1,350. The rental agent who showed tenant the apartment said that he wasn't authorized to rent at the lower rent and had tenant sign a blank lease with a preferential rent rider. The lease form was completed at a monthly rent of $1,350. So this became the legal regulated rent. A preferential rent and legal regulated rent must be clearly stated in the original lease document presented to tenant, and can't be added later.

Woodward/Parkville Realty Assoc.: DHCR Adm. Rev. Docket Nos. ZH210033RT, ZH210030RO (5/5/15) [3-pg. doc.]