What to Charge After Eight-Month Vacancy Lease

Landlord gave tenant an eight-month vacancy lease. When the vacancy lease ended, tenant renewed the lease for one year at the legal rent guidelines. Landlord later refunded to tenant the overcharge collected by not giving tenant a full one-year vacancy lease and delayed tenant's renewal increase until 12 months after the vacancy lease started. Tenant asked the DHCR if this was the proper procedure or if landlord had to offer tenant another renewal lease. In an opinion letter, the DHCR said that when a landlord offers tenant a lease for a term of less than one year, the lease would be deemed a one-year lease. So landlord should give tenant a renewal lease with a start date 12 months after the vacancy lease began and use the rent guidelines in effect on that renewal lease start date.

DHCR Opin. Ltr. by Charles Goldstein (9/23/98) [2-pg. doc.]