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Rent History Review & Next Steps

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

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Rent History Review & Next Steps

Postby scratchaspiring » Thu Dec 08, 2022 7:29 pm

Hi, I just signed a lease for a rent stabilized apartent. Can somebody help me interpret this rent history?

Year Name Legal Regulated Rent Reasons Differ./Change
2016 Tenant 1 1350
2017 Tenant 2 1650 LEAS/RNL (for 2 years)
2018 Tenant 2 1650
2019 Tenant 2 1650
2020 Tenant 2 1650 LEASE/RNL
2021 Tenant 3 1000 VAC/LEASE
2022 Tenant 3 1538

I am a new Tenant 4 and I am being charged $1850. I feel this could be a case of overcharge. What should my next steps be?
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Re: Rent History Review & Next Steps

Postby TenantNet » Thu Dec 08, 2022 7:41 pm

It could very well be an overcharge. I'm assuming the LL still admits you are RS, yes? And the lease says that?

Before 2019, LLs could decontrol units either by High Income or High Rent Decontrol. After June 2019, that is no longer possible. All vacancies and renewals from that date must continue to be RS and abide by the Rent Guidelines Board limits, with possible increases for Major Capital Improvements (MCI - building-wide improvements) or by Individual Apartment Improvements (IAI). Even those increases are more limited than before, but any combination of increases can no longer be used to decontrol.

There are very few situations where decontrol could now happen, often in 421-a or J51 buildings, or if a LL combines two units for a new (larger) unit. If they change the outside walls (and not just a few inches), decontrol might be possible, but if that's the situation, I would look at it very carefully.

I would check the increases going back to 2016 (did the building exist prior to that?). The jump to 1650 seems extra high.

But it seems the 2021 rent has it back down to 1000. That might be the result of a Preferential Rent becoming the new legal rent (for the tenant in place). As I understand things, if a tenant leaves, the pref. rent can then resort back to the prior legal rent.

Have you asked the LL for an explanation of the increases? (get it in writing). Did you get the informational rider with your first lease .... that might explain how the increase was computed.
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Re: Rent History Review & Next Steps

Postby scratchaspiring » Thu Dec 08, 2022 7:55 pm

Thanks for the response.

Re: "As I understand things, if a tenant leaves, the pref. rent can then resort back to the prior legal rent." I believe this was only the case prior to June 2019. After that date, increases can only be made on the preferential. However, the rent history does not ever indicate this unit having a preferential rent. It's only the legal rent going up and down.

The rent history goes back to 1984, but I did not include the history prior to 2016 as I feel it's not too relevant.

No, I was not provided a rent stabilized lease. I explicitly asked for it at lease signing and the broker said that the landlord is a "small landlord", so he "doesn't do that" and that it's "only $1850". I believe this means the landlord does not acknowledge that I am rent stabilized? But I am rent stabilized because the unit is registered via the DHCR right?

As for asking the LL for an explanation of the increases, I am not sure if I want to do that just yet before I know that I have a strong case.
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Re: Rent History Review & Next Steps

Postby TenantNet » Fri Dec 09, 2022 4:44 am

On the Pref Rent (PR) issue, you misunderstood what I said. Actually both are true. Yes, increases can be made only on the PR. But once a tenant leaves, then the legal rent would resort back to what it was before without the PR. See Judge Lebovits article on the HSTPA of 2019 (see link at the top of the Forum).

I raised the PR issue because there are any number of variables to consider. Yes, the rent history that you posted does not indicate a PR, but the LL could claim it was a mistake.

Not being given a RS lease does not determine RS status, but it's useful in looking at things, i.e., what the LL might claim if you file a complaint. But also understand that being registered, while helpful, is not necessarily the last word.

Being a "small landlord" is not an excuse. Only $1850? That's a lot of money. RS gives you many more rights than just what you pay.

Your job now is to get as much information on all this as possible. Yes, generally I agree that you will want to do this under the radar. At some point you will need to pull the trigger. Another thing you can do is talk with neighbors and if possible, talk with the prior tenant.
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