Hello:
We're being offered a renewal lease--which is to kick in January 1 2020 on which there is preferential rent. The actual renewal lease specifies two separate rents--legal and preferential- and respective rent increases for one/two years.
For the legal rent, the increase rates are: 1.5%/ 2.5% for one or two year leases respectively. Last time around SCRIE picked up the increase in legal rent. which was considerably lower than the actual increase in preferential rent.
The current lease, in terms of preferential rent has 3.7% / 5% increases for one/two years respectively. I generally go with a 2 year lease. So this is of concern to me.
I had thought that under the new rent law of 2019, preferential rent increases are now subject to Rent Guideline Board rates (1.5%, 2.5%). So that since I'm under SCRIE there should be a rent freeze in terms of the actual rent increase for me. But it seems that in this Renewal Lease, they're using similar steeper rent hike rates on the preferential rent -exactly as was done 2 years ago.
1) Am I misunderstanding something here? And that somehow because of SCRIE , this is correct?
2) Might this just be due that this Renewal Lease was drafted (probably via computer) before the new law went into effect? Although I had received the packet only last week, it is pre-dated to late August. And perhaps perhaps the calculations were still using the now outdated standards for preferential rents? If so, this might potentially be corrected by having it pointed out--diplomatically- to management, if I could even get through to them. Though who knows..
3) Might it be that they're ignorant of or deliberately flaunting the law? I have not the energy no the resources to mount a legal battle on this...