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I have a question regarding rent stabilized contracts. To…

Customer Question
Hi there, I have a question...
Hi there,
I have a question regarding rent stabilized contracts.
To make the long story short, last year (October 2016) my landlord made me sign a new kind of contract, a rent stabilized one, which I assume it happens to everyone according to the introduction on new De Blasio law.
He also assured me that the rent wouldn't have increased this year, according to the new law introduced. However, when we met to sign a renewal contract, the landlord and the real estate agent that helps the deal (my landlord is Mexican and the RE AGENT helps with the translation) they introduce this concept of preferential rent vs legal rent. It turned out that what I had so far was a preferential rent and that the 0% increase applies only to legal rent situation, therefore not my case.
Surprised of the news I went to the DHCR website and asked what was my legal rent is. I got this reply.
QUESTION
Hi,
I'm looking to find the legal rent of my apartment.
Is there any chance you guys have this information?
best,
—LF
-------------------------------------------------
Subject Building Address
-------------------------------------------------
Street:*****
Apartment/Unit: Apt 1A
City: Brooklyn
Postal Code: 11206
ANSWER
The address below is NOT registered with DHCR as a Rent Stabilized building. Only rent stabilized buildings and apartments are required to be registered with DHCR.
Now, I'm baffled...am I being lied to? Am I not even supposed to have rent stabilized contract? Help please!
Submitted: 11 months ago.Category: Real Estate Law
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Answered in 6 minutes by:
10/3/2017
Real Estate Lawyer: Law Educator, Esq., Lawyer replied 11 months ago
Law Educator, Esq.
Category: Real Estate Law
Satisfied Customers: 127,643
Experience: Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

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Real Estate Lawyer: Law Educator, Esq., Lawyer replied 11 months ago

IF the building is not registered as a rent stabilized building, then you are not supposed to be under a stabilized lease or the landlord is in violation of the law for failure to register the rent stabilized building and can be fined. So, if your building is not a registered rent stabilized building, regardless of what he is calling the lease, it is just a regular lease and not a rent stabilized one and as it is not an official rent stabilized building he can change the terms at any time upon expiration of the original lease and does not have to comply with the stabilization laws.

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Customer reply replied 11 months ago
Ok, this sounds weird then.
Why would my landlord have me sign a rent stabilized contract if she could charge me how much she wants?How do we determine if out building should be register as rent stabilized or not? Is it mandatory when the building is eligible to be rent stabilized?
Real Estate Lawyer: Law Educator, Esq., Lawyer replied 11 months ago

Thank you for your reply.

I have no idea why she would have you sign one unless she believes she has registered as a rent stabilized building. Parties can agree to a lease under whatever terms you like, if the landlord wants to say you will be stabilized only the housing rent stabilization office can tell you if it is mandatory or if she is just doing this voluntarily since she is not registered.

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Customer reply replied 11 months ago
Yeah, super weird...
It sounds like she's doing it voluntarily. Could it be possible that if she register the building as a rent stabilized, than DHCR would give her a legal rent?
Real Estate Lawyer: Law Educator, Esq., Lawyer replied 11 months ago

Thank you for your reply.

If she did register the building, then she would be under legal rent, but I really do not know why she is doing this.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.

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Customer reply replied 11 months ago
Hi There,
as far as we understood, when under a rent stabilised contract, the landlord can make you pay a preferential rent up to the legal rent. The question is, how is the legal rent establish in first place? Who determines the legal rent?
Customer reply replied 11 months ago
News on my question?
Real Estate Lawyer: Law Educator, Esq., Lawyer replied 11 months ago

Thank you for your reply.

The legal rent is established initially by the landlord, the increases are determined by the rent stabilization board.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.

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