The ol' "preferential rent" thing

[disgruntled]

So, I just signed a lease for a new place, that includes the "preferential rent" rider that has been discussed here before.

I think I understand from previous discussions that the landlord has to give us increases based on the "preferential" rent for any future leases. Is this correct? We'd rather not pay a lot of extra money if he decides that the market will bear his "actual" rent next year.

One other minor point--have people seen that the 75% carpeted rule is regularly enforced? We are fine with getting carpets if necessary, but are quiet anyway and like hardwood floors.

[Phil Cohen]

It depends on what the rider says. If it says, "this is a one-time thing," blah blah blah, then it would seem to me the LL could increase the rent in the future. Otherwise, if it just says, "this is a preferential rent," and nothing else, then it is a different story and he could NOT reinstate the legal rent.

[Mr Gray]

One other minor point--have people seen that the 75% carpeted rule is regularly enforced?

I've lived in many different places over the course of 13 years now.

You shouldn't have a problem unless someone COMPLAINS or live in an ultra strict co-op or something.

I like the hardwood floors too ...but would advise a few area rugs for the really big spaces.

[geoffnet]

As far as I know, the landlord has to give you increases based only on the preferential, however depending on the rent history it may be illegal for your first lease to include the preferential rider at all. For instance if the rent was registered as what you're paying previously or not registered at all, and this is your first lease, I'm pretty sure it's illegal for you to get a preferential.

The idea behind preferential is that once you've lived there for a year or two years and your lease comes up for renewal, the landlord can legally add on the RGB increases for that year, however if he or she likes you, he or she can maintain your current rent (without the increase) but register it with the increase offering you officially (through the registration with the DHCR) a preferential rent for good behavior. Since this provision is not met when you first move in to a new apartment, I'm certain it's illegal to begin a tenancy with a preferential, though this may only be the case if they haven't been registering with DHCR. In any case I find lots of landlords screw around with preferential rent to make tons more money and artifically deregulate apartments. Be wary.

[Phil Cohen]

I had a little trouble following your reply, Greg.
By definition a "preferential rent" is always legal, because it assumes the apartment's rent is indeed registered and that the LL is charging less than he legall could.
Presumably that is happening here.
Is it possible that the "preferential rent" is too much? I guess so, but that is not what the tenant is saying here.
Also it is not correct that the LL has to give increases based on the preferential. The courts have ruled recently that if there is a clause saying that the preferential is temporary, the LL can go back to the higher rent in the future.

[Brooklyn Babe]

My preferential lease rider reads:
"123 Address Brooklyn, NY 10000: Pursuant to NYCRR § 2521.2, the legal rent for the unit is $1826.00. In consideration of the depressed rental market, the tenant shall pay a preferential monthly rent of $1720.00 plus applicable yearly increases for the duration of the tenancy. The preferential rent becomes the base rent upon which future rents are calculated during your preferential tenancy. The legal rent becomes the base rent upon which future vacancy rents are calculated after the duration of the preferential tenancy."
I think it is important to include the statement
"The preferential rent becomes the base rent upon which future rents are calculated during your preferential tenancy." to protect you from sudden increses.

[disgruntled]

Folks, thanks much for the advice. Geoff, I really am not qualified to know if it's legal, but it's the only way we can get the apt.--the "legal" rent is more than we can pay. What I am trying to establish is that I will not get increases based on the legal rent. Would you care to amplify on "be careful"? I would love to know what to do if, for example, he attempted to remove the "preferential" rider in the next year or two.

[Phil Cohen]

why not post your rider, the way BB has, disguising the address and the amount of rent