Landlord Must Continue Preferential Rent

Rent-stabilized tenant complained of an improper lease renewal. She said that landlord refused to renew her preferential rent. The DRA ruled against tenant, finding that landlord wasn't required to renew the preferential rent agreement. Tenant appealed and won. Landlord claimed that it didn't intend to renew tenant's preferential rent agreement after the initial lease. But tenant's initial lease stated, "The parties to this lease agree and acknowledge that the tenant will be charged during the term of the tenant's occupancy a preferential rent of $650 per month for the length of this initial lease. The preferential rent is personal to the tenant named in the lease only, and will not inure to the benefit of the tenant's successors and/or assigns." The language of the preferential rent clause was unclear and therefore must be interpreted against landlord, who drafted the language. In addition, landlord had relocated tenant from her old apartment after a fire, because landlord wanted to increase the rent for tenant's old apartment. Landlord gave tenant the preferential rent as part of the agreement to switch apartments.

Hoffman: DHCR Adm. Rev. Docket No. XG410079RT (11/18/09) [4-pg. doc.]