How Rent Concessions Can Impact Your Lease Agreements

On June 26, 2025, the Appellate Division, First Department, issued its latest decision in Burrows v. 75-25 153rd St., LLC (2025 NY Slip Op 03861).  Please find our analysis the Court of Appeals decision on Burrows here. 

This recent decision addresses the distinction between temporary rent concessions and preferential rents. 

Of note: the Appellate Division’s decision serves as a reminder to owners that rent concessions should be carefully drafted and clearly limited to specific months or tied to a specific existing condition. If not properly documented, it is highly possible that what owners intend to be one-time concessions, will be interpreted as a preferential rent; exposing owners to rent overcharge claims and restricting future rent increases. 

KMWB is available to assist with the preparation, review and revision of lease riders and rent concession language to ensure that an owner’s concession intention is properly crafted.

Media Contacts:

Valerie Shutack
Kucker Marino Winiarsky & Bittens, LLP
(212) 869-5030
vshutack@kuckermarino.com