Three-Year Lease with Graduated Rents

Tenant complained of a rent overcharge. The DRA ruled for tenant, stating that tenant had an initial two-year lease at $450 per month, followed by a two-year renewal lease at $475 per month. Landlord appealed. Tenant, in fact, was given an initial lease for three years with graduated increases. Tenant paid $440 per month the first year, $450 the second year, and had the option to extend the lease for a third year at $475. Tenant's security deposit was also $475. Since prior tenant's rent had been $475, there was no rent overcharge.

Gal Realty: DHCR Adm. Rev. Dckt. No. DG410166RO (6/26/97) [2-page document]