Since the 2019 HSTPA, Preferential Rents are supposed to be permanent for the life of your tenancy. But a dangerous new legal trend is emerging: the "Construction Concession" trap.
Can My Landlord Revoke My "Preferential Rent" When I Renew?
Generally, No.
Under the HSTPA, "Preferential Rents" are the permanent base rent for the life of the tenancy. However, recent court rulings have created a trap: "Temporary Concessions" (tied to specific conditions like construction) may still be revocable.
The "Zombie Law" (Bait-and-Switch)
- The Myth: "The landlord can revoke your lower 'Preferential Rent' and charge the higher 'Legal Rent' when your lease renews."
- Why It's Wrong: This practice was banned by HSTPA Part E in June 2019.
The Current Law (Life of Tenancy)
- The Statute: RSL § 26-511(c)(14) states that the rent charged and paid (the lower preferential rent) becomes the base rent for all future renewals.
- The Protection: The landlord can only apply RGB guideline increases (e.g., 2.75%) to the Preferential Rent, not the higher "Legal" rent.
⚠️ The "Concession" Carve-Out
Recent case law (e.g., Flynn v. Red Apple, Chernett v. Spruce) distinguishes between a protected "Preference" and an unprotected "Concession."
- Protected: A general discount or "Net Effective Rent" meant to entice you to sign. (Likely permanent).
- Unprotected: A "One-Time Construction Concession" granted for a specific, temporary inconvenience (e.g., dust, noise, unavailable gym). Courts may allow landlords to remove this discount upon renewal.
🚨 Take Action: Protect Your Rent
Don't sign a renewal lease that revokes your discount without checking the facts.
- Step 1: Read your original lease rider. Does it say "Preferential Rent" or "Construction Concession"?
- Step 2: Contact me for a Free Lease Review at 347-669-3256.
If your landlord is trying to revoke a concession that has existed for years, it may be illegal. We can help you determine if that lower price is actually your permanent rent.