Landlord Must Offer Renewal Lease at Preferential Rent

Tenant complained that landlord hadn't offered him a rent-stabilized renewal lease on the same terms and conditions as his last lease. Tenant said that landlord no longer offered tenant a preferential rent. Landlord claimed that the preferential rent was offered only for a limited time and wasn't required upon lease renewal. The DRA ruled against tenant. The Rent Stabilization Law allowed landlord to discontinue a preferential rent upon lease renewal. Tenant appealed. A rider attached to tenant's prior lease listed both the legal regulated rent and the lower preferential rent. The rider stated that "Upon renewal of this lease landlord will base the increase calculation on the reduced amount." The DHCR ruled for tenant. The language of tenant's lease rider didn't clearly state that the preferential rent would be continued for all renewal leases. It could also be argued, as landlord did, that the rider was limited to one renewal. But since prior landlord drafted the lease rider, tenant must receive the benefit of the doubt given the uncertain meaning of the lease rider. Landlord must renew tenant's lease based on the preferential rent.

Maxwell: DHCR Adm Rev. Docket No. VA410010RT (9/18/07) [6-pg. doc.]