Posted by Mark Smith on March 12, 1999 at 00:01:45:
In Reply to: YES, Re: What is "preferential rent" posted by Will on March 11, 1999 at 17:04:46:
Will gave an excellent answer about the preferential rent. As to the 20% increase, that would ordinarily apply to a 2-year vacancy lease. However, because the apartment has not received a vacancy increase in about 16 years, the landlord would be entitled to 20% plus 16 x 0.6% (9.6%), or 29.6% for a 2-year lease.
: Yes it is...however the apartment has to be registered with the higher rent amount AND the preferential rent amount. Both have to be on the lease..as long as that tenant is in the apartment the renewal increases are based on the preferential rent. When that person vacates the vacancy rent is based on the actual registered legal rent. This was done in many case when the market was lousy or if the landlord just flat ou felt like doing it.
: In my case the realtor showed it to me at a price, the landlord although entitled to about $20 more after improvement where calculated accurately agreed to honor the price I was quoted. So on my lease it states legal amount and "agreed" amount....
: The best thing to do is get the price history of the apartment and see what it has to say.
: : I am about to move into an apartment that is currently leased out for $960/month. The current tenants have been living there for 16 years. It is a rent stabalized building. When I asked the landlord how much the rent would be, he said it would be at least 1,400 even if they did not repair anything. (everything in the apartment is over 16 years old). When I questioned him about why there would be such as large increase (I thought the vacancy rate would be 20% of $960) he told me that in fact, they were paying a preferential rent and that the legal rent of the apartment is much higher, so that they could use the 20% increase based on a much larger amount. Is this legal?
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