Ask Sam: My landlord promised not to raise my preferential rent, but now he is. What can I do? Skip to main content
Fulltext search
FILTER RESULTS BY:
RECOMMENDED IN RENT
Moving to NYC after college? Here's how to find a rental apartment
RECOMMENDED IN BUY
How buying real estate in NYC is unlike anywhere else
RECOMMENDED IN SELL
A guide to using a no-fee renovation loan from a NYC real estate firm
RECOMMENDED IN IMPROVE
How to make your NYC renovation more pet-friendly
BEST REAL ESTATE WEBSITE!
National Association of Real Estate Editors
BEST REAL ESTATE WEBSITE! National Association of Real Estate Editors
Brick Underground
Social Links
follow:
  • Facebook
  • Twitter
  • Instagram
  • Flipboard
  • search
Brick Underground
☰ Brick Underground
Brick Underground
Brick Underground
☰
Brick Underground
  • Buy
    • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
    NYC rowhouses
    Live
    New state legislation would tax 'predatory' home flippers in NYC
    Hermitage Amangansett
    Beach
    How to buy a Hamptons hotel condo or co-op unit as an investment property
    New residential buildings in Long Island City, Queens
    New Construction + Condos
    Changes to lending rules from Fannie Mae and Freddie Mac alarm NYC condo buildings
  • Rent
    • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
    Dylan in his Murray Hill apartment
    Rent
    Why I moved to NYC from Ohio: I wanted to feed my passion for karaoke, art, and vintage décor
    Renters rallied before the RGB vote
    Rent
    A rent freeze or small increase? RGB preliminary vote leaves room for both
    165 Willoughby St.
    Affordable Housing
    Housing lottery launches for 20 rent-stabilized units in Downtown Brooklyn
  • Sell
    • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
    Condo buildings near Hudson Yards
    Sell
    Manhattan co-op and condo deals above $3 million doubled in the first quarter
    Apartment buildings in New York City
    Sell
    What is a pied-à-terre? What makes it different from a typical NYC apartment?
    renovating before selling
    Renovation
    How much should you renovate your NYC apartment or house before selling?
  • Live
    • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
    FlatRate moving brick underground
    Live
    How to troubleshoot your move in advance
    Sponsored By flatrate
    Julius Boekell's 1877 238 East 6th St
    Live
    Julius Boekell's 1877 238 East 6th St: A striking neo-Grec design
    NYC rowhouses
    Live
    New state legislation would tax 'predatory' home flippers in NYC
  • Improve
    • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide
    An ADU designed for a roof deck.
    Design + Architecture
    ADU curious? This site helps you navigate NYC’s new accessory dwelling unit rules
    air conditioning NYC co-ops and condos
    Products + Services
    Yes, you can install central AC in your co-op or condo unit. Here's how
    Blue cabinetry and window-paned interior doors
    Design + Architecture
    Who should you hire to renovate your Upper East Side luxury co-op?
    Sponsored By YossiG & Home Evolutions
  • Boards & Buildings
    • Boards & Buildings
    • Boards
    • Finance
    • Insurance
    • Legal
    • Property Management
    • Structure & Systems
    • Sustainability
    Burned and Boarded Up Windows
    When should your board hire a public adjuster?
    Manhattan GM
    What should we consider when renewing insurance for our building?
    Facade of NYC buildings
    How much is insurance on a NYC co-op or condo building?
  • Advertise
    • Advertise with us
    • Sponsored Content
    • Experts
    FlatRate moving brick underground
    Live
    How to troubleshoot your move in advance
    Sponsored By flatrate
    Three women lounging amusingly upside-down on a couch in a clean, brightly lit apartment
    Rent
    How to find a sublet in NYC: The online platform connecting apartments and renters
    Sponsored By Ohana
    East 60 Street in Manhattan
    Rent
    Ask Altagracia: My roommate moved out. Can I replace them with someone not on the lease?
    Sponsored By Outerbridge Law P.C.
  • Brick Report
  • About Us
  • About Us
Email Address
Fulltext search
FILTER RESULTS BY:
New Main menu
  • Buy
    • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
  • Rent
    • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
  • Sell
    • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
  • Live
    • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
  • Improve
    • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide
  • Boards & Buildings
    • Boards & Buildings
    • Boards
    • Finance
    • Insurance
    • Legal
    • Property Management
    • Structure & Systems
    • Sustainability
  • Advertise
    • Advertise with us
    • Sponsored Content
    • Experts
  • Brick Report
  • About Us
    • About Us
    • Advertise
  • About Us
SUBSCRIBE TO OUR NEWSLETTER →
Social Links Footer
  • Facebook
  • Twitter
  • Instagram
  • Search
Ask Altagracia [ SPONSORED ]

Ask Sam: My landlord promised not to raise my preferential rent, but now he is. What can I do?

By Himmelstein McConnell Gribben & Joseph LLP  | October 4, 2017 - 10:00AM
image

angela n./Flickr

SHARE:
Share to Facebook
Share to Twitter
Print
More...

I thought I was taking over a rent-stabilized apartment lease last fall, but before I moved in and received the paperwork, the landlord said he would give me the rent-stabilized rate for one year on a rent concession rider, and that the legal rent would be 18 percent more. When I tried to push back, he said it was to protect the building for the next tenants and he wouldn't raise the rent that much in the next year. I was obviously too trusting because now it’s time to renew my lease and he is raising it by that much. What can I do?

There are a few possibilities in this situation, according to Sam Himmelstein, a lawyer with the firm Himmelstein, McConnell, Gribben, Donoghue & Joseph LLP who represents residential and commercial tenants and tenant associations.

One is that the previous tenant in your apartment had a preferential rent, which means that the landlord was charging less than the maximum legal regulated rent, and then opted to do the same for you.

Landlords may do this to entice tenants if they’re having trouble renting out their apartments at the full legal regulated rent. However, this means that when those tenants renew their leases, the landlord can raise the rent to the legal regulated rent, and they could therefore be facing a massive rent hike, rather than the typically smaller increase set by the Rent Guidelines Board for stabilized units. If this happens to you, once the landlord opts to raise your rent to the legal regulated rent, future increases will be the maximums allowed by the Rent Guidelines Board. 

“This is legal, as long as both the legal and preferential rent are set forth in the initial lease and subsequent renewal leases, and the landlord registers both the preferential and higher legal rent,” Himmelstein says. “Unless the landlord says in the lease that the preferential rent is somehow permanent, they can end it and charge the higher rent when you renew.”

Another possibility has to do with the 18 percent rent hike your landlord is charging you, which is close to the legal vacancy increase for stabilized apartments. Owners of stabilized units are allowed to raise the rent on a vacant unit by 20 percent for incoming tenants who sign two-year leases.

“It’s possible that the landlord is taking the vacancy increase but initially charging a lower preferential rent,” Himmelstein says. In that case, “The same rules apply: As long as both the higher and lower rents are set forth in the lease, and the landlord registers both of them, then it's legitimate, and the landlord can end the preferential rent at the end of the lease.”

You may have recourse if your landlord failed to register the legal and preferential rents with the state, or didn’t specify them on your lease. Given that there’s a rent concession rider on your lease, though, it sounds like the landlord did his due diligence.

If you find that that’s not the case, you’re only on the hook for the lower rent, but you may be in for a visit to housing court to sort this out.

“You could pay lower rent and end up in a court battle, and you’d probably win, but you’d have to litigate,” Himmelstein says. 

Related: 

Ask Sam: What does "preferential rent" mean, and are there any downsides? (sponsored)

Ask Sam: My landlord lied about my preferential rent. Is it still binding? (sponsored)

Ask Sam: I found out my apartment used to be rent-stabilized. Now what? (sponsored)

Ask Sam: My landlady moved me out of a stabilized unit, and now she wants to raise my rent by $400. What can I do? (sponsored)

See all Ask a Renters' Rights Lawyer


 

Sam Himmelstein, Esq. represents NYC tenants and tenant associations in disputes over evictions, rent increases, rental conversions, rent stabilization law, lease buyouts, and many other issues. He is a partner at Himmelstein, McConnell, Gribben, Donoghue & Joseph in Manhattan. To submit a question for this column, click here. To ask about a legal consultation, email Sam or call (212) 349-3000.

Alanna Schubach

Alanna Schubach

Contributing writer

Contributing editor Alanna Schubach has over a decade of experience as a New York City-based freelance journalist.

SEE MORE BY Alanna Schubach »
Brick Underground articles occasionally include the expertise of, or information about, advertising partners when relevant to the story. We will never promote an advertiser's product without making the relationship clear to our readers.

topics:

Ask Altagracia rent regulation
SHARE
TWEET
BRICK’S PICKS
Governor Kathy Hochul announces proposed a pied-à-terre tax
Hochul unveils new pied-à-terre tax on NYC luxury second homes
harassment from a neighbor NYC
Is your neighbor harassing you? Follow these 4 steps to handle the problem
brooklyn apartments
No co-signer for your rental? No problem—try these 6 guarantor workarounds
Common space at Outpost Group's Williamsburg location.
Co-living 2.0: Proposed NYC law would legalize shared housing in new development to ease housing crisis
Manhattan apartment building
Cool homes for all: A guide to NYC’s new AC mandate for rentals
renovating before selling
How much should you renovate your NYC apartment or house before selling?
Follow Brick on Instagram
@brickunderground | #brickunderground
Brick UndergroundBRICK UNDERGROUNDREAL LIFE. REAL ESTATE. REAL NEW YORK.
Social Links Footer
  • Facebook
  • Twitter
  • Instagram
  • Search
Main menu footer
  • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
  • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
  • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
  • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
  • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide

Get more news you can actually use...

Email Address

Delivered to your inbox weekly - for free.

*By signing up you agree to receive occasional emails on behalf of our sponsors

Footer Menu
  • About Us
  • Advertise

Copyright 2009-2024 by BND Ventures Inc | Privacy Policy | Terms of Service | Ad Choices | Login | Powered by Mortar CMS, the AI CMS