Landlord Doesn't Prove Preferential Rent

Rent-stabilized tenant complained of a rent overcharge. Landlord claimed that the base date rent was a preferential rent, later discontinued, and that there was no overcharge. The DRA ruled against landlord, and ordered it to file amended registration statements to reflect that tenant's registered rent was the legal regulated rent. Landlord appealed and lost. Although landlord wasn't required by law to state the legal regulated rent in subsequent renewals after initially setting forth a preferential rent in tenant's lease, its failure to do so within four years following the last lease in which it was set forth resulted in the preferential rent being established as the legal regulated rent.

89th Avenue Realty Corp.: DHCR Adm. Rev. Docket No. AM110033RO (10/8/12) [2-pg. doc.]