Landlord Discontinued Preferential Rent

Tenant complained of a rent overcharge after landlord discontinued her preferential rent. The DRA ruled against tenant. Tenant appealed. Tenant had moved into the apartment on Sept. 1, 2003, under a two-year lease. Her legal rent was listed as $1,905 and a lease rider gave tenant a preferential rent of $1,250 per month. In 2005, landlord renewed tenant's rent at $2,029 with a preferential rent of $1,331. In 2007, landlord opted to charge tenant a renewal rent of $2,176 without offering a preferential rent.
The DHCR ruled against tenant. Tenant's first rent was the base rent in effect four years before she filed her complaint. Tenant's preferential rent agreement clearly indicated that it was temporary and didn't have to be renewed. In her PAR, tenant also claimed that the DHCR should look back more than four years because prior tenant's rent was $650. The DHCR refused to do so, because there was no evidence of any fraud by landlord.

Siguencia: DHCR Adm. Rev. Docket No. WC410048RT (6/11/08) [5-pg. doc.]