In United W. LLC v. Margulies, 12 Misc 3d 1159[A], 819 N.Y.S.2d 213, 2006 NY Slip Op 50971[U] [Civ Ct, NY County 2006], affd 16 Misc. 3d 132[A], 847 N.Y.S.2d 899, 2007 NY Slip Op 51432[U] [App Term, 1st Dept 2007]) the initial lease provided that the preferential rent would last for the duration of the tenancy. Although the tenant signed a renewal lease charging the legal regulated rent, the court concluded that the landlord had to continue to offer the preferential rent.
One reason for the court's decision was that the tenant rejected the renewal lease before the renewal term began.
Nonetheless, it is certain that even if the tenant had not rejected the lease until after the renewal term began, the decision would have been the same.
The court cited the rules that the renewal lease had to be on the same terms as the original lease and that the tenant could not waive the benefit of the rent stabilization law.