New Landlord Can Discontinue Preferential Rent

Tenant complained of a rent overcharge when new landlord renewed his lease at the legal regulated rent instead of continuing to base rent increases on a preferential rent. The DRA ruled against tenant, finding no overcharge. Tenant appealed and lost. Tenant claimed that prior landlord promised that the preferential rent was legal and would continue through his tenancy. But that was not their written agreement. Tenant's initial lease, renewal leases, and rent registrations all showed both the legal regulated rent and the preferential rent. And each lease and renewal lease stated that the preferential rent was for tenant only and for the term of that lease or renewal lease only. So landlord was entitled to discontinue the preferential rent under Rent Stabilization Code Section 2521.2.

450 West 162nd Street: DHCR Adm. Rev. Docket No. WK410033RT (5/8/09) [4-pg. doc.]