On-Time Rent Concession Didn't Become Tenant's Legal Rent

(Decision submitted by Tony Subraj, Vice President of landlord Zara Realty.)

Landlord sued to evict tenant for failing to sign a rent-stabilized renewal lease. Tenant claimed that the lease renewal rate was above the legal regulated rent, and asked the court to dismiss the case. The court ruled against tenant. Tenant's prior lease listed the legal regulated rent as $2,940 and a preferential rent of $2,540. In addition, the prior lease provided for an on-time rent concession of $1,190. The rent concession rider stated that, if tenant paid rent on or before the 5th day of the month, tenant didn't have to pay the higher preferential rent. The rider also said that, if the concession rent wasn't received on or before the 5th of the month or was returned due to insufficient funds, the preferential rent was payable, plus a late fee and bank charge if tenant's check bounced. The renewal lease offered to tenant calculated the new rent based on the prior legal rent of $2,940. Tenant's rent concession wasn't one for specific months and wasn't a prorated concession based on dollar value for free months over the lease term. The rent concession or discount was in effect each month only if tenant paid rent by the 5th. This type of discount wasn't prohibited and didn't become the legal rent. DHCR Fact Sheet #40, cited by tenant, simply prohibits landlord from revoking an on-time discount mid-lease for late payment. And there was nothing in DHCR Fact Sheet #40 to suggest that an on-time discount will become the legal rent. 

195 ST LLC v. Porter: Index No. L&T 58149/17 (Civ. Ct. Queens; 11/28/17; Nembhard, J) [5-pg. doc.]