TenantNet Forum

Where tenants can seek help and help others



Preferential Lease Rider - Confusing Language!

NYC Rent Regulation: Rent Control/Rent Stabilized, DHCR Practice/Procedures

Moderator: TenantNet

Preferential Lease Rider - Confusing Language!

Postby sarahdelaney » Thu Sep 28, 2017 10:38 am

Hello!

I am a very new tenant in a rent-stabilized building with preferential rent. I know PR is way less than ideal, but we were not in a position to turn it down. Now I'm reviewing the PR rider and am very confused by some of the language. I'm copying it below and if anyone can clarify it for me I would greatly appreciate it!!

"The legal regulated rent for any subsequent lease renewal will be based upon the rent set forth in the attached lease and not upon the amount of rent set forth in this Rider. The temporary rent concession/Preferential Rent does not apply to successors and may be terminated by landlord on any subsequent lease renewal."

I understand that the last sentence states that the landlord can kick it up to the LRR (legal regulated rent) at the end of our lease, but the first part is what's confusing me. Both the lease and the rider list *both* the PR and the LRR, so are they saying the lease renewal will be based on the PR or the LRR?

Thank you!
sarahdelaney
 
Posts: 2
Joined: Thu Sep 28, 2017 10:26 am

Re: Preferential Lease Rider - Confusing Language!

Postby TenantNet » Thu Sep 28, 2017 11:13 am

There are no rent stab buildings - only RS apartments.

First look at this: http://www.nyshcr.org/Rent/FactSheets/orafac40.pdf

The LRR (which is probably illegal and you might wish to investigate that - quietly) can be increased by normal renewal increases or other approved increases such as by MCI's.

The original lease - and renewal leases - must list the LRR. So the new LRR would be based on that.
The Tenant Network(tm) for Residential Tenants
Information from TenantNet is from experienced non-attorney tenant
activists and is not considered legal advice.

Subscribe to our Twitter Feed @TenantNet
TenantNet
 
Posts: 8460
Joined: Mon Jan 21, 2002 2:01 am
Location: New York City

Re: Preferential Lease Rider - Confusing Language!

Postby sarahdelaney » Thu Sep 28, 2017 11:46 am

TenantNet wrote:There are no rent stab buildings - only RS apartments.


Sorry, I meant rent stab apartment, was a typo!
sarahdelaney
 
Posts: 2
Joined: Thu Sep 28, 2017 10:26 am

Re: Preferential Lease Rider - Confusing Language!

Postby BubbaJoe123 » Mon Oct 02, 2017 12:36 pm

"The legal regulated rent for any subsequent lease renewal will be based upon the rent set forth in the attached lease and not upon the amount of rent set forth in this Rider. The temporary rent concession/Preferential Rent does not apply to successors and may be terminated by landlord on any subsequent lease renewal."

Basically, the first sentence is saying that the LRR going forward will be calculated as "LRR in this lease * (1+RGB increase)", rather than "PR in this lease * (1+RGB increase)." This is a pretty standard provision, when tied to the second sentence.

In summary, they're giving a discount off of what they could legally charge for this lease, but they're not committing to providing any discount in future leases.
BubbaJoe123
 
Posts: 150
Joined: Mon Jun 30, 2014 5:31 pm


Return to NYC Rent Regulated Apartments

Who is online

Users browsing this forum: No registered users and 1 guest

cron