Renewal Lease Offered with Increased Preferential Rent Was Proper

Rent-stabilized tenant complained that landlord offered him an improper renewal lease. The DRA ruled against tenant, who appealed and lost. Tenant claimed that the offered renewal was unlawful because it increased his monthly rent from $1,122 to $1,700 for a one-year lease or $1,750 for a two-year lease. But tenant's legal regulated rent was over $3,000 per month, and tenant's lease contained a rider providing for a preferential rent. So even if tenant was charged $1,122 as a preferential rent in his prior renewal lease, the $1,700-$1,750 offered on renewal was still a preferential rent that was less than the legal rent. Landlord's renewal lease offer was proper.

Kimbi: DHCR Adm. Rev. Docket No. GX610032RT (3/22/19) [3-pg. doc.]