Increase on Preferential Rent

[SparklieGirl]

My lease indicates that my LL is giving me a preferential rent. (The lease indicates both my rent and the "potential" rent.) I was wondering whether he is allowed to increase the rent 4% of what I pay or 4% of the allowable? Also, is there anything stopping him from deciding not to give me preferential rent and upping my rent to the full legal rent?

Thanks,
Heather

[HAJ77]

When it comes time to renew your lease, the LL does not have to offer you the preferential rent again, and can legal require you to pay the legal rent plus any increases. However, it's all up to the LL they can allow you to keep the preferential rent plus increases, but he can also charge you the legal rent plus increases.

[SparklieGirl]

Thank you.

Another question I have -- My lease ends November 30, 2002. I read that I should be notified of renewal no more than 150 and no less than 120 days before the end of the lease. If I haven't been offered a new lease, what happens?

Thanks,
Heather

[HAJ77]

Forgot to put this in my message, it's a link to the RSL on TenantNet

http://www.tenant.net/Rent_Laws/RSC/rsc2521.html

For your 2nd question, check out www.housingnyc.com

It's no more than 150 days and no less than 90 days.

[NYHawk]

I'm pretty sure HP is wrong. I think a lanlord has to keep rent at preferential rent for as long as tenant is in apartment. There was a case last year that said differently but in that case the wording of the lease was unique.

[TenantNet]

Last I heard they cut the Collingwood doctrine to pieces.

[vicric]

The preferential rent prevails for the length of your tenancy -- UNLESS the lease states OR implies a time when the preferential rent will end.

In implying a time limit, the lease might say, "In consideration of the depressed rental market, the tenant shall pay . . . ." As long as the lease also states the legal regulated rent, the landlord may charge you the full rent when the market is no longer depressed.

The landlord might avoid litigation by specifying a number of years, rather than a debatable condition of the economy.

The preferential-rent statute -- cited earlier in this thread -- has been modified by the very recent CPLR-78 case law: Missionary Sisters of the Sacred Heart v. DHCR, decided in the Appellate Division, First Department, on May 21, 2001.

The preferential rent becomes the base rent upon which future rents are calculated during your preferential tenancy. That is, for a two-year lease this year, your new preferential rent would 4% more than your previous preferential rent.

After vacancy, the legal regulated rent prevails. The next tenant does not inherit preference.

However, the lease MUST state what the legal regulated rent would be AND what the preferential rent is. The landlord's failure to acknowledge the legal regulated rent in writing may possibly forever lower the stabilized value of the apartment (subject to fascinating litigation, I'm sure).

[RiverStyx]

So... my lease lists my rent as 'preferential' with no reference to a time limit (it also acknowleges the legal rent at each renewal). Am I safe in assuming that, as long as I live here, I don't have to worry that my next renewal is suddenly going to be at the 'legal' rent plus whatever increase is voted on? This would be relief to me... I sweat it out every time my renewal is up...

RS

[Phil Cohen]

Vicric is right -- this is a complex subject, as you can see.
The lease must be renewed on the same terms as previously. You should get a preferential rent in the next lease too.