Sublet Allowance Based on Preferential Rent

March 1, 2002

LVT Number: 15686

Tenant's rent-stabilized rent was $1,000 per month, but landlord charged tenant a preferential rent of $800 per month. Tenant asked the DHCR what rent amount could be collected by landlord from tenant and by tenant from subtenant during the sublet period. In an opinion letter, the DHCR said that landlord could collect only the preferential rent plus lawful hikes, not the full rent. And tenant could charge subtenant only the preferential rent plus a 10 percent surcharge if the apartment was rented furnished to the subtenant.

Tenant's rent-stabilized rent was $1,000 per month, but landlord charged tenant a preferential rent of $800 per month. Tenant asked the DHCR what rent amount could be collected by landlord from tenant and by tenant from subtenant during the sublet period. In an opinion letter, the DHCR said that landlord could collect only the preferential rent plus lawful hikes, not the full rent. And tenant could charge subtenant only the preferential rent plus a 10 percent surcharge if the apartment was rented furnished to the subtenant.

DHCR Opin. Ltr. by Charles Goldstein (11/8/01) [2-pg. doc.]

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