PREFERENTIAL RENT

Two years ago I moved into my rent-stabilized apartment.  My landlord told me that the rent I would be paying is lower than the rent that is registered with the NYS Division of Housing and Community Renewal (DHCR).  Now that I am renewing my lease, the landlord has informed me that the rent is being increased back to the legal rent.  This is a $400 difference! Can the landlord do this?

                                                           R.K. Woodside

Yes.  When a landlord charges a tenant a rent lower than the rent that is registered with the DHCR, this rent is called a "Preferential Rent".

On June 20, 2003, Governor Pataki signed a new Rent Law passed by the New York State Legislature, Chapter 82 of the Laws of 2003.  The new Law applies to all proceedings pending before DHCR on and after June 15, 2003.  This law amended both the New York City Rent Stabilization Law (RSL), which regulates all rent stabilized apartments in New York City, as well as the Emergency Tenant Protection Act (ETPA).

The new law now gives owners the option of charging the higher legal regulated rent upon renewal of the lease of a tenant who was paying a preferential rent.  Prior to June 15, 2003 owners were permitted to charge the higher legal regulated rent only if the tenant who was paying a preferential rent permanently vacated the apartment or signed a rider stating upon renewal of the lease the owner is allowed to change the preferential rent back to the legal regulated rent.  The new law does not state that the owners must give the tenant prior notice of the change in rent before the renewal lease is offered.  Therefore, the owner does have the right to change the lower rent to the legal regulated rent.

A tenant who has a preferential rent agreement which states that your preferential rent is to last for the TERM OF YOUR OCCUPANCY, the recent change in law may not apply to you.  For more information, please contact the Housing Advisor at (718) 204-1056.