Property Management

In New York City, the 'preferential rent' concept in rent stabilization means:

AA rent lower than the maximum legally permitted rent that a landlord charges a tenant✓ Correct
BA rent increase above the guideline
CThe rent charged to preferred (long-term) tenants
DA rent established by the DHCR for a specific apartment

Explanation

A preferential rent is a rent charged below the legal regulated rent. Under NYC rent stabilization, the legal registered rent is the maximum that can be charged, and landlords sometimes charge less (a preferential rent). Law changes in 2019 restricted landlords' ability to revert to the higher legal rent upon renewal.

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