Property Management

In New York, a 'preferential rent' in a rent-stabilized apartment is a rent that:

AIs higher than the legal regulated rent
BIs lower than the legal regulated rent, charged at the landlord's discretion✓ Correct
CIs set by the Rent Guidelines Board
DIs only applicable in Manhattan

Explanation

A preferential rent is a rent that is lower than the legal regulated rent that could be charged for a rent-stabilized apartment. Landlords sometimes charge preferential rents to attract or retain tenants. Under the HSTPA of 2019, once a preferential rent is charged to a tenant, it becomes the base rent for calculating future increases for that tenant for the duration of the tenancy.

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