Preferential Rent
Preferential rent is a rent charged that is lower than the legal regulated rent the owner could lawfully collect for a regulated apartment. Under state guidance, for tenants paying a preferential rent on or after June 14, 2019, the preferential rent generally persists for the life of the tenancy and lawful increases are applied to the preferential rent (with noted program-specific exceptions).
- Where it applies
- General / NYS / NYC
- When it comes up
- Lease Execution / Renewal
- Property types
- Residential Leasing (Regulated Units)
In practice
Preferential rent treatment is frequently a data-integrity issue in rent rolls and renewals because the "legal" and "paying" rents can differ.
Read more in the Knowledge Base
- Preferential Rent - Current HCR Rule and RecordkeepingLandlords
- Rent Increase Limits - Stabilized vs Market-RateRenters
- Vacancy and Renewal Increases - Current Post-HSTPA ControlsLandlords
- Rent Increases - What's Legal in NYCRenters
- Rent Stabilization - Current HCR Operating ArchitectureLandlords
Related terms
Rent Regulation (NYS/NYC)
- CityFHEPS
- DRIE (Disability Rent Increase Exemption)
- FARE Act (Fairness in Apartment Rental Expenses Act)
- Individual Apartment Improvement (IAI) Increase
- Legal Regulated Rent
- Major Capital Improvement (MCI) Increase
- New York City Rent Guidelines Board (RGB)
- New York State Division of Housing and Community Renewal (DHCR/HCR)
- Renewal Lease Notice Window (90-150 Days)
- Rent Control
General information, not legal, tax or financial advice.