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Preferential rent removal (repost)

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

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Preferential rent removal (repost)

Postby sharpie2018 » Wed Feb 20, 2019 12:10 am

*This is a repost as i wasnt getting the registration email at my yahoo account and i used a temp email which is not allowed here. I re-registered with my backup email. (Sorry TenantNet!)


Hello!

I have a question regarding preferential rent. Here is my situation. I have been on preferential rent since 2006. The rent increases every 2 years per nyc rent guidelines. My building was sold, this month, and the new landlord informed me they are removing the preferential.

The legal rent is 1700, and my preferential is 1200.

On my original lease from 2006, there is a preferential rent rider which states the following:

"If there is any conflict between the provisions of this rider and the terms of the appended printed lease, such conflict shall be resolved in each and every instance in favor of the provisions of this rider.
The monthly legal regulated rent for this apartment is $1353.10. Renter acknowledges that this agreement shall in no way affect the monthly legal regulated rent for the subject apartment. Owner reserves the right to calculate the rental amount for future vacancy leases based upon this monthly legal regulated rent.
Instead of the legal regulated rent set forth above, Owner agrees to charge and renter agrees to pay a monthly preferential rent of $950.00 and shall pay this same amount as a security deposit. If renter chooses to renew the terms of this lease, this preferential rent amount, plus all other lawful increases, shall be used to calculate all applicable increases to establish the renewal rent. Thereafter, each successive renewal rent shall be calculated based upon increases to the most recently established renewal rent for as long as the renter remains in occupancy."

Can the new owner removed the preferential? If not, what are my options?
sharpie2018
 
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Re: Preferential rent removal (repost)

Postby BubbaJoe123 » Tue Feb 26, 2019 1:15 pm

As I read it, it's saying that (a) renewal leases will be at the preferential rent, plus the allowed rent-stabilized increase, and (b) that the preferential rent will expire at the end of the tenancy, so the LL can charge a new tenant the legal rent.

So, at least as I read the provision, you're entitled to keep paying the preferential rent + rent-stabilized increase for as long as you're in residency. Honestly, I'm surprised the LL put this provision in the lease, they typically say that the preferential rent is only for the term of a particular lease, allowing them to remove it upon renewal.

Short answer, I'd certainly read that rider to saw that the LL may NOT remove the preferential.
BubbaJoe123
 
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