Preferential Rent guidelines

[moondncr33]

I have a preferential rent lease due to "present economic conditions" that's up for renewal.

The LL is asking for a 4.25% one year increase, or a 10% two year.

Are there any guidelines for the increase, or is he just seeing how high I'll go to keep the squalid little dump?

Moon

[jot0n0]

I am not certain, but I believe the RGB % increase is calculated off of the legally registered rent, not the preferential rent you are now paying. I assume you are getting reduce rent because the LL could not find anyone else to rent the apt to at the higher legal rent, but now that LL has you in the apt, he assume you will be less likely to move out and will now try to collect the maximum allowed rent. Depending on how desperate LL is in retaining you as a tenant, you may be able to negotiate a lower rent increase.

[Phil Cohen]

Nope, if you have a preferential rent (and assuming you are entitled to one in the next lease) the increase is based on the lower, actual rent, NOT the higher registered rent.
The question is, are you entitled to a preferential rent in the new lease? I think the law is not ironclad. Your lease has to be renewed on the same terms as the old lease. But if the old lease says "the preferential rent is for this lease only" the LL may try to ditch the preferential rent.