Owner may, after a default by Tenant, collect rent from
Thus, lease agreements should clearly identify advance rent from
payments made by a lessee for leasehold improvements.
Agrees Mitofsky, "The rent deposit law as written was designed to eliminate tenants that do not have the money to pay the rent from
toying with the system.
No adjustments would be made to year 2 rent; however, interest of $24,476 on the deferred rent from
year 1 would be included in income and deducted (of course, $250,000 of year 2 rent would also be taken into account).
In addition, the Company will continue to collect rent from
its lessees and expects to pay its quarterly distributions to shareholders on a basis consistent with past practices.
Thus, the Appellate Term, by a majority vote, ruled that the landlord, 1100 Avenue of the Americas Associates, was not entitled to additional rent from
the tenant due to tax increases on the building because the real estate taxes were not being paid by the landlord.
If the building contains six or more units, the owner is entitled to a free market rent from
the next tenant, with the premises thereafter being subjected to rent regulation.
A reasonable interpretation would be that the owner could obtain the higher rent from