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.

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.

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This is general legal information, not legal advice for your specific situation.