Landlord Discontinued Preferential Rent

Rent-stabilized tenant didn't get a vacancy lease when he moved into his apartment. Landlord charged tenant a preferential rent. Landlord registered tenant's apartment that year, showing the legal regulated rent, but not the preferential rent. Later, tenant received renewal leases showing both the legal regulated rent and the preferential rent. Tenant asked the DHCR if landlord could discontinue the preferential rent on the next renewal even though there was no vacancy lease agreement specifying the legal regulated and preferential rents. In an opinion letter, the DHCR pointed out that under 2005 changes to the Rent Stabilization Code, landlord could discontinue the preferential rent upon renewal if the legal regulated rent was ''previously established.'' This could be done either by specifying the legal regulated rent in either the vacancy lease or the renewal lease, or by specifying the legal regulated rent in an annual rent registration.

DHCR Opin. Ltr. by Michael B. Rosenblatt (6/14/06) [3-pg. doc.)