Brooklyn, NY asked in Real Estate Law and Landlord - Tenant for New York

Q: Hi, I have a question about rent stabilization, vacancy increases and preferential rents in NYC.

I recently requested my rent history. It tells an interesting story.

No one in my (formerly regulated) unit has paid the “legal rent” since 1993. All tenants have since paid a preferential rent, never more than $1,450. However, despite this, every time a tenant moved out (7 times in the 30 years of rent history I reviewed) the landlord increased the “legal rent” by 18-22%. That “legal rent” - which was really a theoretical amount that no one ever paid, not even close - accrued in the background over time through these vacancy increases, so much so that it went over $2,500 when the tenants prior to me moved out and the unit was exempted from regulation.

Is this legitimate? Based on my understanding of the (old) law, it is. However, it seems sort of crazy, since using this maneuver would basically ensure that any landlord could deregulate any unit given a vacancy every 4-5 years.

1 Lawyer Answer
Elaine Shay
PREMIUM
Elaine Shay
Answered
  • Landlord Tenant Lawyer
  • New York, NY
  • Licensed in New York

A: The situation you described involving the preferential rent isn't surprising. The 18%-20% increase is generally associated with vacancy increases. If you want to challenge the deregulation, you can always take a shot with the DHCR

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