Preferential Rent Wasn't Limited to Tenant's First Lease

Tenant complained of a rent overcharge. Tenant's vacancy lease gave tenant a preferential rent of $600 per month. But landlord's renewal lease rent was based on the higher, legal regulated rent. Tenant claimed that this was an overcharge. The DRA ruled for tenant. Landlord appealed, claiming that the preferential rent applied only to tenant's first lease and that it wasn't required to renew at a preferential rent. The DHCR ruled against landlord. The preferential rent rider in tenant's vacancy lease didn't provide that the preferential rent would end at the end of the lease. The lease rider stated that tenant would be charged a preferential rent ''during the term of the tenant's occupancy.'' The lease also stated that tenant was given the preferential rent for relocating to the apartment, not based on current economic conditions. So the preferential rent continued to apply under tenant's renewal lease.

Hillside Pl. LLC: DHCR Adm. Rev. Dckt. No. QK110067RO (4/3/03) [4-pg. doc.]