Preferential Rent Rider Form Nyc: Fill & Download for Free

It means that the apartment is rent-stabilized, and likely has a market rent that is below the legal rent for the apartment.The lease should come with a “Preferential Rent Rider” which would contain language similar to that quoted in your question.A “Preferential Rent Rider” informs the tenant that the stated rent is less than the legal regulated rent for the apartment, and thus “preferential” or gratuitous.These riders usually contain language allowing the landlord to increase the rent higher than is allowed by the NYC Rent Guidelines Board, which sets annual rent increases for rent-stabilized apartments. For a preferential lease, the landlord can raise the rent any amount upon renewal, provided it does not exceed the ‘legal rent’ for the apartment.

The Rent Guidelines Board of NYC establishes maximum annual increases in rent on 1 and 2 year leases for approximately 1 Million stabilized apartments under its authority. There are no minimum rents established; landlords are fee to charge a lower rent than that which is the "legal rent" (or maximum rent) for a stabilized apartment. This is known as a "preferential rent."The RGB requires landlords renting stabilized apartments for LESS than the apartment's "legal rent" to attach a document to the lease known as a "Preferential Rent Rider." The PRR discloses that the rent under the lease is less than the legal rent of "X" amount, and that the landlord may increase the rent at the expiration of the term for any amount up to the new legal rent at the time of renewal. This allows the landlord to increase the actual rent at the end of the term at its discretion, provided it is not higher than the legal rent established by the RGB.A "lowered" or "preferential" rent is quite common. For example, the legal rent for a studio apartment is, say, $1,753.76. If the market rental value is only $1,350.00, then the landlord rents it for $1,350.00 and a "Preferential Rent Rider" is attached to the lease. When the term expires, the landlord can then increase the rent any amount it wishes, provided that the new rent does not exceed the new legal rent ($1,753.76 + that year's annual RGB increase).

You have terms wrong. It’s not called “actual” rent, it’s called preferential rent.These terms are used only when a rent-stabilized apartment has a market value that is lower than the legally-regulated maximum rent for the apartment. This is increasingly rare in NYC.A “legal rent” is the maximum rent a landlord may charge for a rent-regulated unit, which is increased upon changes in tenancy and/or other factors such as a Major Capital Improvements (MCIs) or other legal increases.This means that in some areas and at some times the “legal rent” of an apartment will be higher than the market will bear. In those cases, a rent-stabilized lease is issued together with a preferential rent rider which lowers the rent to the actual agreed rent. This allows the apartment’s “legal rent” to continue so it will eventually be removed from rent regulation when it achieves the legal threshold for vacancy decontrol of the unit.So the difference between a legal rent and an “actual” (preferential) rent is that the preferential rent is always lower because the market value of the apartment (or the rent the landlord has agreed to accept) is less than the current legal maximum rent.