In New York City, the amount your landlord can raise your rent each year is limited by Rent Guidelines Board (RGB). This board sets maximum rent increases for rent-stabilized apartments, which are typically older buildings with six or more units that were built before 1974. For one- and two-year leases, the RGB sets two different maximum rent increases: a lower “legal regulated rent” increase and a higher “preferential rent” increase. Landlords can charge up to the preferential rent if they offer certain improvements to the apartment. The RGB also sets a maximum rent increase for month-to-month leases, which is typically higher than the maximum rent increases for one- and two-year leases.
Rent-Regulated Apartments
Living in New York City, you may wonder about rent increase regulations. Understanding rent regulation laws is the first step toward being well-informed. Read on to learn more.
Rent Stabilization
Rent Stabilization protects tenants from large rent increases by limiting how much rent can be raised by landlords. Here are some details about rent stabilization:
- Applicability: Applies to residential buildings built before 1974, with six or more residential units. It also covers certain buildings constructed after this date if they have received rent subsidies or tax breaks.
- Rent Increases: Rent can only be increased by a specific percentage set by the Rent Guidelines Board (RGB) each year for one-year leases, and by 5% or 6% for two-year leases.
- Lease Renewals: Landlords must offer renewal leases with the same terms as the prior lease, including the same rent, except for allowable rent increases.
- Vacancy Decontrol: Rent stabilization apartments may become market-rate when the monthly rent reaches $2,800 for a one-bedroom apartment, or $3,200 for a two-bedroom apartment.
Rent Control
Rent control is a more stringent form of rent regulation that applies to certain apartments with long-term tenants.
- Applicability: Generally applies to buildings constructed before 1947, as well as some buildings built later with rent-control protections.
- Rent Increases: Rent can only be increased when specific expenses (such as property taxes or fuel costs) increase.
- Lease Renewals: Landlords must offer renewal leases with the same terms as the prior lease, including the same rent, except for allowable rent increases.
Major Capital Improvements (MCI) Rent Increases
Landlords can apply for MCI rent increases to cover the cost of certain major improvements or repairs, such as new elevators, windows, or heating systems.
- Application: Landlords must file an application with the DHCR and obtain approval before undertaking the improvements.
- Rent Increases: The DHCR determines the amount of the rent increase based on the cost of the improvements and the benefits to the tenants.
How Much Can Your Landlord Raise Your Rent?
Rent Stabilization:
| Lease Term | Rent Increase |
|---|---|
| One-Year Lease | Set by Rent Guidelines Board (RGB) each year |
| Two-Year Lease | 5% or 6% |
Rent Control:
- Rent can only be increased when specific expenses (such as property taxes or fuel costs) increase.
MCI Rent Increases:
- Determined by DHCR based on the cost of the improvements and the benefits to the tenants.
Rent Increases for Rent-Stabilized Apartments
Rent increases for rent-stabilized apartments in NYC are limited by the Rent Guidelines Board (RGB). The RGB sets annual rent increase guidelines for one- and two-year leases. The guidelines are based on a formula that considers factors such as the Consumer Price Index (CPI) and the cost of fuel and utilities.
Landlords are not required to follow the RGB guidelines, but they cannot increase rent by more than the guideline amount plus an additional 1%. For example, if the RGB sets a 3% rent increase guideline for one-year leases, a landlord can raise the rent by a maximum of 4%.
Landlords must provide tenants with a written notice of any rent increase at least 30 days before the new rent takes effect. The notice must include the amount of the rent increase, the date the new rent will take effect, and the reason for the increase.
Rent Increases for Non-Rent-Stabilized Apartments
Landlords of non-rent-stabilized apartments can raise the rent by any amount they want, as long as they give tenants proper notice. The notice period for a rent increase in a non-rent-stabilized apartment is 30 days.
Special Rules for Rent Increases in NYC
- Landlords cannot raise the rent on a rent-stabilized apartment more than once per year.
- Landlords cannot raise the rent on a non-rent-stabilized apartment more than twice per year.
- Landlords cannot raise the rent on a rent-stabilized apartment that is occupied by a senior citizen or a person with a disability by more than 3% per year.
- Landlords cannot raise the rent on a rent-stabilized apartment that is occupied by a tenant who is receiving public assistance by more than 1% per year.
Rent Increases for Rent-Stabilized Apartments
| Lease Term | Rent Increase Guideline |
|---|---|
| One-year lease | 3% |
| Two-year lease | 2.5% |
Rent Increases for Rent-Controlled Apartments
Rent increases for rent-controlled apartments in NYC are regulated by the Rent Guidelines Board (RGB). The RGB sets annual maximum rent adjustment percentages for one- and two-year leases. These percentages vary depending on the type of apartment, as well as the building’s location and size.
- Rent-Controlled Apartments: For rent-controlled apartments, the RGB sets maximum rent increases based on two factors: the apartment’s rent history and the building’s services and amenities.
- Rent-Stabilized Apartments: For rent-stabilized apartments, RGB sets maximum rent increases based on the CPI index, which measures the change in the cost of goods and services over time.
Here’s a table summarizing the maximum rent increases for rent-controlled apartments in NYC:
| Apartment Type | Maximum Rent Increase |
|---|---|
| One-Year Lease | 1.5% to 3% |
| Two-Year Lease | 2.5% to 4% |
To protect tenants from excessive rent increases, the RGB utilizes a variety of additional regulations and guidelines.
If you live in a rent-controlled apartment in NYC, it’s important to know your rights and responsibilities as a tenant. You can find more information about rent control laws on the NYC Department of Housing Preservation and Development (HPD) website.
Annual Rent Increases by the Rent Guidelines Board
In New York City, the Rent Guidelines Board (RGB) is responsible for setting annual rent increases for rent-stabilized apartments. The RGB considers several factors when determining the allowable rent increase, including the Consumer Price Index (CPI), the cost of fuel and utilities, and the vacancy rate.
- The CPI measures the change in the prices of goods and services over time.
- The cost of fuel and utilities includes the cost of heating oil, natural gas, and electricity.
- The vacancy rate is the percentage of rental units that are vacant.
The RGB uses these factors to calculate an allowable rent increase that is fair to both landlords and tenants. The allowable rent increase is typically between 1% and 3%, but it can be higher or lower depending on the economic conditions.
| Year | Allowable Rent Increase |
|---|---|
| 2023 | 3.25% |
| 2022 | 1.5% |
| 2021 | 2.0% |
| 2020 | 2.0% |
| 2019 | 1.5% |
Landlords are required to give tenants at least 30 days’ notice of any rent increase. The notice must be in writing and must state the amount of the increase and the effective date of the increase. Tenants who believe that their rent increase is unfair can file a complaint with the RGB. The RGB will then investigate the complaint and determine if the rent increase is justified.
Rent-stabilized apartments are apartments that are subject to rent control. Rent control is a government regulation that limits the amount of rent that can be charged for certain apartments. Rent-stabilized apartments are typically located in New York City, and they are typically occupied by low-income tenants.
Hey there, thanks for sticking with me and learning more about rent increases and tenant rights in NYC. I know it can be a dry topic, but it’s important stuff! Remember, the rent increase guidelines are just that, guidelines, but they still offer some protection. If you’re concerned about a rent increase, don’t hesitate to reach out to your landlord or tenant advocacy group. Also, keep in mind that rent laws are always changing, so be sure to check back here for updates. Until next time, stay informed and keep your rent affordable!