New York Rent Increase Laws: What Tenants Should Know

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Living in New York City, with its vibrant culture and endless opportunities, is a dream for many. But this dream often comes with a significant concern for tenants: rent increases.

In 2023, understanding the nuances of NYC's rent increase laws is crucial for tenants to ensure they are not paying more than they should.

How Rent Increases Work in NYC

Free-Market vs. Rent-Regulated Apartments

The amount a landlord can increase your rent in NYC largely depends on the type of apartment you occupy. If you're in a free-market building, there's no cap on rent increases, but landlords must provide proper notice. In contrast, rent-stabilized or rent-controlled apartments (collectively known as rent-regulated apartments) are protected under state law, limiting how much landlords can hike the rent. Notably, over half of NYC's apartments fall under this rent-regulated category.

2023 Guidelines for Rent-Stabilized Apartments

The NYC Rent Guideline Board plays a pivotal role for those in rent-stabilized apartments. In 2022, they set a 3.25% increase cap for one-year leases and 5% for two-year leases, applicable from October 2022 to September 2023. So, if your rent is $1,000, it can only go up to $1,032.50 or $1,050, depending on your lease term.

Free-Market Apartments

In free-market apartments, landlords can increase rent to what they believe reflects the apartment's fair market value. While this might sound daunting given NYC's pricey rental market, landlords typically avoid exorbitant increases to keep tenants from moving out. Interestingly, for simplicity, many landlords voluntarily apply the Rent Guideline Board's percentages to free-market apartments.

Negotiating Rent Increases

You have the right to negotiate any proposed rent increases. A successful negotiation often depends on your track record as a tenant. Timely rent payments and being a considerate neighbor can put you in a favorable position for negotiating a lower increase.

Legality of Rent Increases

Legally, landlords can increase rent at the end of your lease, whether it's month-to-month, one-year, or two-year. In non-regulated apartments, most increases are valid, but always check your original lease for specific provisions. Landlords must provide a 60-day notice for any increase over 5%, as mandated by the Housing Stability and Tenant Protection Act of 2019.

Limits for Rent-Regulated Apartments

Suppose you're in a rent-regulated apartment, and your lease renewal increase exceeds the Rent Guidelines Board's cap. In that case, contact them immediately. Sometimes, an illegal rent increase can indicate that you're in an unregistered apartment. Also, under the 2019 HSTPA, rent increases for major capital improvements in rent-stabilized apartments are capped, further protecting tenants.

Tips to Avoid Rent Increases

1. Pay Rent Timely: Consistent, on-time rent payments make you a less likely candidate for rent hikes.
2. Opt for Longer Leases: Consider accepting longer lease renewals to lock in your rent amount and avoid sudden increases.
3. Be a Good Tenant: Adhere to lease terms, maintain your apartment well, and be respectful to neighbors to reduce the likelihood of rent increases.

Bottom Line

While many NYC apartments are unregulated, landlords still need to follow certain procedures for rent increases. If you're in a rent-stabilized apartment, you're protected by specific laws limiting rent hikes. If you're unsure about your apartment's status, reach out to the New York Division of Housing and Community Renewal for clarification.

Sources:

https://propertyclub.nyc/article/how-much-can-your-landlord-increase-your-rent-in-new-york-city

https://rentguidelinesboard.cityofnewyork.us/resources/faqs/rent-increases/