Rent Stabilization Question Preferential & Market (New York, York: hardwood floors, apartments, lease)

[yabesdraob]

I tried a bunch of Google searches, but can't find anything on it. I did, however, find some knowledgeable people on this site in other threads, even some being landlords.


I live in an apartment that is rent stabilized. The legal rent is (for the sake of this discussion) is $2000 and the landlord is charging me a preferential rent of $1700 upon my lease signing. I understand upon a lease renewal, he can raise the rent to the legal rent amount.

Say I sign 2 2-year renewals (total 6 years) and the landlord decides to not charge the legal rent and raises the preferential rent $100 per lease renewal. So year 1-2 would be $1700, 3-4 would be $1800 and 5-6 would be $1900, still under the original legal rent.

If he decided to charge the legal rent for years 7-8 and my 3rd renewal, what would determine the market rent then? I know NYC puts limits on how much the landlord can raise the rent every year (excluding capital improvments), how would this come into play since he isn't charging me the full rent for the renewals?

Does it work like this?.......

Say NYC approved for rent increases of a 3% for a one year lease and 4% for two-year lease for the next several years.I know it varies, but for this discussion, let's pretend those are the approved increases for the next several years.

Even though he raised my rent roughly 6% (which is allowed, because I'm under the legal rent), would my legal rent be increased by 4% because I signed a two-year lease? So essentially, my preferential rent would be $1800 and my legal rent would be $2080?

Would this hypothetical example continue like this? Am I mistaken:


Years 1-2 Preferential Rent - $1700 .....Legal Rent $2000
Years 3-4 Preferential Rent - $1800 (6% increase)......Legal Rent $2080 (4% increase)
Years 5-6 Preferential Rent - $1900 (6% increase)......Legal Rent $2163.20 (4% increase)
Years 7-8 The lease renewal he decides to charge the legal rent, he can legally raise my rent to: $2249.73 (4% increase)

Am I understanding this correctly? I understand and agree that he has the right to charge the legal rent upon lease renewal. I'm just kind of curious how the whole thing works.

The NYC website says the increases "are for tenants paying the "legal regulated rent" for their apartment as established by the rent stabilization laws". I'm not paying the legal regulated rent, so I'm confused to how my legal rent is calculated?

[Kefir King]

Here's how it usually works:

The term “legal registered rent” is confusing, because in many cases the
amount registered is not legal at all. New York State Homes and Community
Renewal (HCR) is the government agency that administers the rent stabilization
program. However, landlords are responsible for registering the legal rents for
their own apartments with HCR, and the agency does not verify or investigate
their claims. The lack of oversight makes it easy for landlords to
file false registrations. Only a complaint made by the tenant living in the
apartment will trigger an investigation.


Often tenants with preferential rents don’t investigate their situation until
they receive a renewal lease without the offer of a preferential rent, and are
faced with paying a higher “legal registered rent” - in many cases
hundreds of dollars more per month.


By the time a preferential rent is revoked, it may be too late to challenge
the “legal registered rent.” The law requires tenants to raise rent overcharge
complaints within four years of the date at which the overcharge first occurred
(with limited exceptions). Landlords that fraudulently register rents typically
wait four years before revoking preferential rents from tenants so to buffer
themselves against rent overcharge complaints.

Odds are good you are being cheated by your very typical crooked landlord.

[yabesdraob]

How can I officially look up my "legal rent" to confirm what my landlord states is correct?

I don't think the landlord is crooked, he's been very helpful and the building and my unit are in amazing shape. Plus most tenants have been here for over 20 years.

[Kefir King]

Start by contacting DHCR. You may luck out and get an honest clerk.

(Nobody ever said a crooked landlord cannot be NEAT.)

Plus most tenants have been here for over 20 years.

Find out what they are paying. They are probablypaying the LEGAL legal rent rather than the IMAGINARY legal rent.

[yabesdraob]

Thanks for the suggestion, I'm going to look into the rent history out of curiosity. My wife is an attorney, so I'm sure she can find any funny business going on.


But can someone answer my question if they know it?

[yabesdraob]

I know this is old, but I did get my rent history.

I find it kind of fishy that the legal regulated rent went from $995 to $2273 during a vacancy. But at the same, my apartment is beautifully renovated with hardwood floors, all new doors, beautiful kitchen and bathroom, stainless steel appliances. Basically the entire apartment was gutted and rebuilt, brand new drywall, windows, light fixtures, trim and all.

with the 1/40 law, the landlord could raise the rent if the renovations cost $51,120. I'm not a contractor, but i'm guessing this kind of cost is realistic for a gut and rebuild right?

Comparing to the long term tenants won't be a good comparison. Their apartments are disgusting.