Renewal Leases Don't Contain Preferential Rent Rider

Tenant complained of a rent overcharge after landlord increased his rent upon renewal from $500 to $650. Landlord argued that tenant received a preferential rent rider with his first lease but that it applied only to tenant's first lease. The DRA ruled for tenant. Landlord appealed and lost. Landlord had renewed tenant's lease twice before and continued the preferential rent. Landlord can discontinue the preferential rent before tenant vacates only if the specific lease rider, stating the amount of the legal regulated rent, the preferential rent, the term for the preferential rent, and the reason for the preferential rent is included in all leases during which the preferential rent is collected. Since landlord didn't include the rider with tenant's first two renewal leases, the preferential rent must continue.

2765 Kingsbridge Terr., Inc.: DHCR Adm. Rev. Dckt. No. QG610039RO (2/12/03) [4-pg. doc.]