Wednesday, March 26, 2014

Offer of Renewal of Rent Stabilized Lease Is Not Deemed Automatically Renewed

The Rent Stabilization Code sets forth that "Where the tenant fails to timely renew an expiring lease or rental agreement offered [by the landlord] pursuant to this section, and remains in occupancy after expiration of the lease, such lease or rental agreement may be deemed to have been renewed upon the same terms and conditions, at the legal regulated rent. . . had the offer of a renewal lease been timely accepted." Rent Stabilization Code § 2523.5(c)(2). Therefore, a landlord in a rent stabilized apartment would expect that if he timely delivered a notice of renewal to the tenant prior to the expiration of the lease term and the tenant remains in possession without signing the renewal, the landlord would be entitled to hold that the renewal lease to be deemed renewed for the year under the law, especially if the tenant remains in possession and pays the newly increased monthly rent.