Managing agents who offer renewal leases to rent stabilized tenants should be aware of changes to the Rent Stabilization Code (RSC) that became effective in December, 2000.
THE WINDOW OPENS WIDER
The former code provided that renewal leases are to be offered no sooner than 150 days and no later than 120 days prior to the lease's expiration date. The "window" period has been changed to 150-90 days. RSC Section 2523.5(a). The tenant has 60 days to sign the renewal lease, opting for a one or two-year term, and to send it back to the landlord. The landlord must return a fully executed copy of the renewal lease to the tenant within 30 days.
THE CASE OF THE NON-RESPONDING TENANT
The revised Code gives landlords a new weapon against tenants who avoid a rent increase by failing to respond to an offer of a renewal lease. If the tenant fails to timely respond to an offer of a renewal lease but remains in occupancy after the lease expires, the landlord may "deem" a renewal lease - and collect the increased rent - starting on the first rent payment date occurring 90 days after the renewal offer was made. RSC Section 2523.5)(c)(2). The deemed lease should be a two-year lease if the last renewal was for two years or a one-year lease if the last renewal was for one year.
REQUEST NAMES OF OCCUPANTS
When sending the renewal lease to the tenant, enclose the DHCR or the HPD form that asks for the names of all persons residing in the apartment. The tenant must also indicate, for each person, whether the person is a family member, a senior citizen or a disabled person. Although RSC Section 2523.5(e) now provides that you may send this form at any time but not more than once a year, it's a good practice to send it together with the lease renewal.
WATCH THE FINE PRINT
When it's time to renew a lease, it's also a good idea to open the tenant's file and see whether the initial lease complies with CPLR Section 4544. This law requires residential leases and other consumer agreements, signed on or after July 1, 1975, to be clear, legible and printed in a typeface which is at least 8 points in depth. This is 8 point type. If the lease does not comply, the court may not allow the offending portion of the lease into evidence against the tenant. Since the tenant did not draft the lease, the tenant is free to use the small print portions of the lease against the landlord.
This law may potentially invalidate many important lease provisions, such as clauses waiving the right to trial by jury, prohibiting a tenant from keeping a pet, prohibiting a tenant from installing a washing machine and/or providing that the tenant must pay the landlord's attorney's fees if the landlord wins its case against the tenant.
If you find that the initial lease offered to the tenant was in small print, then you should make a 12 point copy of it by using the enlarge feature on your duplicating machine, send it to the tenant along with the renewal lease and make a record of your actions. This is likely to protect those clauses against invalidation.
Linda Rzesniowiecki is an attorney who represents landlords. She may be contacted at 350 Fifth Avenue, suite 2604, New York, NY 10118, 212-868-2747.