FAQ's - High-Rent Vacancy Decontrol & High-Rent High-Income Decontrol
1) An apartment subject to Rent Control is vacated. The owner calculates a legal rent above the Deregulation Rent Threshold for the incoming tenant and is considering charging the tenant a preferential rent that is less and is also below the Deregulation Rent Threshold.
(a) Can the owner charge a preferential rent?
(b) Is the apartment deregulated?
(a) No. There cannot be a "preferential rent" during the term of the initial rent stabilized lease. If a rent of less than the Deregulation Rent Threshold (DRT) is actually paid by the tenant, this rent amount becomes the legal rent, even if a rent at or above the DRT is cited in the lease.
(b) The apartment is deregulated only if the rent that is at or above the DRT was lawfully calculated and is paid by the tenant. The tenant can challenge it with DHCR.