Pre-payment of rent
Posted: Thu Aug 05, 2021 11:59 amComments from tenant attorneys...
Under Rent Stabilization, pre-paid rent might be considered an overcharge and therefore not allowed. But if no one complains, it's not an issue.
Both the General Obligations Law and RSC speak in terms of prohibiting (in addition to deposits) advances of more than one month’s rent ... it could potentially bar prepaid rent in both rent stab/non rent stab apartments.
RSC 2524.4: “Regardless of any contract, agreement, lease or other obligation heretofore or hereafter entered into, no owner, in addition to the authorized collection of rent, shall demand, receive or retain a security deposit or advance payment for or in connection with the use or occupancy of a housing accommodation which exceeds the rent for one month”
GOL 7-108: “No deposit or advance shall exceed the amount of one month’s rent under such contract.”
Under Rent Stabilization, pre-paid rent might be considered an overcharge and therefore not allowed. But if no one complains, it's not an issue.
Both the General Obligations Law and RSC speak in terms of prohibiting (in addition to deposits) advances of more than one month’s rent ... it could potentially bar prepaid rent in both rent stab/non rent stab apartments.
RSC 2524.4: “Regardless of any contract, agreement, lease or other obligation heretofore or hereafter entered into, no owner, in addition to the authorized collection of rent, shall demand, receive or retain a security deposit or advance payment for or in connection with the use or occupancy of a housing accommodation which exceeds the rent for one month”
GOL 7-108: “No deposit or advance shall exceed the amount of one month’s rent under such contract.”