| Rent Increase Facts | Answer |
| Reason Needed? | No |
| Maximum Amount | Determined by the DHCR |
| Required Notice | 30, 60, or 90 Days |
Does New York Have Rent Control Laws?
In New York, some rental units are protected by rent control laws limiting the amount landlords ask for rent. There are two categories of rent control in New York: rent control and rent stabilization. Mobile home units throughout the state also are protected by a cap on rent increases.
Rent Control in New York
New York rent control, in most cases, protects buildings built before February 1, 1947, where the tenant has lived there continuously since July 1, 1971. Rent control may also apply where a qualifying family member gains succession rights.
Rent Stabilization within New York City
Some situations qualify for rent stabilization within the city, defined by:
- Buildings with six or more units built between February 1, 1947, and December 31, 1973
- Tenants living in buildings built before February 1, 1947, who moved in after June 30, 1971
Rent Stabilization outside of New York City
Rental units in buildings may be protected if they:
- Were built before January 1, 1974
- Have six or more units
- Have not been made into a co-op or a condominium
There are many exceptions to these general rules. For examples, some newer buildings have rent-stabilized units which give tax benefits to the developer. Tenants should use the Housing and Community Renewal Rent Regulated Building Search or use their contact form to find more information.
When Can a Landlord Raise Rent in New York?
Landlords in New York can raise the rent at any time, as long as they comply with the following:
- Wait until the end of the lease term (unless otherwise specified in the lease)
- Aren’t raising rent for discriminatory or retaliatory reasons
- Don’t break any rent control laws
- Give reasonable notice
Rent-Controlled Units
The landlord must submit an Maximum Base Rent Program (MBR) notice of increase before increasing the rent at the end of the lease term. Every two years, the Division of Housing and Community Renewal (DHCR) sends a notice to landlords who are recent MBR filers that they may apply for a rent increase.
To be eligible, the landlord must show that they:
- Continue to provide all essential services (like heat when required)
- Have removed 100% of all rent-impairing violations
- Have removed 80% or more of all other violations
Rent-Stabilized Units
At the end of the lease term, the landlord may use the maximum allowable increase set by the local Rent Guidelines Board and must offer a one or two-year lease renewal, providing proper notice as follows:
- New York City – The Renewal Lease Form must be sent by mail or hand delivered between 90 to 150 days before the end of the lease
- Outside New York City – The ETPA Renewal Lease Form must be sent by certified mail within 90 to 120 days before the end of the lease, and must receive a tenant reply within 60 days
In a rent-controlled or rent-stabilized unit, a landlord typically needs to wait until the end of the lease term to raise the rent, unless the lease agreement allows otherwise, or:
- The landlord increases services or equipment or makes improvements to the apartment, all with the tenant’s written consent
- The DHCR approves the increase because the landlord either proved a hardship or installed a building-wide major capital improvement (See Fact Sheet #1)
When Can’t a Landlord Raise Rent in New York?
Landlords in New York may not raise the rent if:
- It is done as retaliation against a protected tenant action, such as filing a complaint
- It is during the middle of a lease’s fixed term (unless stated otherwise in the lease agreement)
- The increase is applied in a way that discriminates against one of the protected classes specified in the Fair Housing Act
In addition to the characteristics above, New York’s Human Rights Law also prohibits discrimination due to:
- Military status
- Status as a victim of domestic violence
How Often Can Rent Be Increased in New York?
For New York units not protected by rent control or stabilization, landlords may increase the rent as often as they choose, provided they give sufficient notice each time and wait until the end of the lease term.
If the unit is protected, increases go as follows:
- Rent-controlled apartments – Landlords can increase the rent once per year
- Rent-stabilized apartment – Increases are typically limited to once every one or two years depending on the lease term
In a rent-controlled or rent-stabilized apartment, a landlord may increase the rent during the lease term by making certain improvements and meeting certain legal conditions.
How Much Notice is Needed To Raise Rent in New York?
In New York, landlords must provide tenants with advance notice if the rent will increase by 5% or more and the length of notice is 30 to 90 days depending on the length of the tenancy or lease term, whichever is longer:
- 30 days’ notice: less than one year
- 60 days’ notice: between one to two years
- 90 days’ notice: longer than two years
How Much Can a Landlord Raise Rent in New York?
New York landlords can raise rent by any amount on a property that isn’t rent controlled, rent stabilized, or a mobile home. In all cases, landlords must follow the rules for rent increases.
Rent Controlled Units Within New York City
The Division of Housing and Community Renewal (DHCR) establishes a specific Maximum Base Rent (MBR) for each rent-controlled unit every two years. The actual rent that the tenant pays is determined by the DHCR and is referred to as the Maximum Collectible Rent (MCR).
The maximum amount a landlord can increase rent is the average of the five most recent Rent Guidelines Board annual rent increases for one-year renewals, or 7.5% each year until they reach the MBR (whichever is less).
Rent Controlled Units Outside of New York City
The DHCR determines a Maximum Rent, and the maximum rate of increase is based on the average of the previous five Rent Guidelines Board adjustments. See Form R-33.8.
Rent Stabilized Units
There are five Rent Guidelines Boards in New York State that meet on an annual basis to establish rent increase rates for rent-stabilized apartments.
Mobile Homes
Rent increases on mobile homes are limited to 3% (including utilities, fees, and other charges) above the current rent except when due to an increase in operating expenses, property taxes, or capital improvements. Tenants can challenge rent increases that exceed 3% in court and rent increases cannot exceed 6% without court approval demonstrating the hardship.
Additional Considerations
There are some exceptions to rent increases in rent-controlled and rent-stabilized units where rent may be frozen, or where the maximum increase may be higher or lower than the rate established by the local Rent Guidelines Board, as follows:
- Major Capital Improvements – Upon successful application to the DHCR, a landlord can increase the rent by up to 2% per year when more than 35% of the building’s units are rent-regulated and the landlord has made certain improvements
- Individual Apartment Improvements – With tenant consent, and filing with the DHCR, landlords can increase the monthly rent, up to an improvement cost of $15,000
- Preferential Rents – A special category used as the basis for rent increases for the remainder of that tenancy
- Senior Citizen Rent Increase Exemption – Low-income renters aged 62 or older are exempt from many rent increases so long as they pay a minimum of one-third of their disposable income on rent
- Disability Rent Increase Exemption – Disabled, low-income renters over 18 years old are exempt from many rent increases as long as they are paying a minimum of one-third of their disposable income on rent
Sources
- 1 N.Y. Comp. Codes R. & Regs. tit. 9 § 2523.5
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On a form prescribed or a facsimile of such form approved by the DHCR, dated by the owner, every owner, other than an owner of hotel accommodations, shall notify the tenant named in the expiring lease not more than 150 days and not less than 90 days prior to the end of the tenant’s lease term, by mail or personal delivery, of the expiration of the lease term, and offer to renew the lease or rental agreement at the legal regulated rent permitted for such renewal lease and otherwise on the same terms and conditions as the expiring lease. The owner shall give such tenant a period of 60 days from the date of service of such notice to accept the offer and renew such lease. The tenant’s acceptance of such offer shall be entered on the designated part of the prescribed form, or facsimile thereof, and returned to the owner by mail or personal delivery. Pursuant to the provisions of section 2522.5(b)(1) of this Title, the owner shall furnish to such tenant a copy of the fully executed renewal lease form bearing the signatures of the owner and tenant within 30 days of the owner’s receipt of the renewal lease form signed by the tenant. Upon execution by the owner and delivery to the tenant, such form shall constitute a binding renewal lease. Upon failure of the owner to deliver a copy of the fully executed renewal lease form to the tenant within 30 days from the owner’s receipt of such form signed by the tenant, such tenant shall not be deprived of any of his or her rights under the RSL and this Code and the owner shall be barred from commencing any action or proceeding against the tenant based upon nonrenewal of lease, pursuant to section 2524.3(f) of this Title. In the event that such notice is given to the tenant after the expiration of the lease, the provisions of subdivision (c) of this section shall govern.
Source Link - 2 N.Y. Real Prop. Law § 223-B(5)
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In an action or proceeding instituted against a tenant of premises or a unit to which this section is applicable, a rebuttable presumption that the landlord is acting in retaliation shall be created if the tenant establishes that the landlord served a notice to quit, or instituted an action or proceeding to recover possession, or attempted to substantially alter the terms of the tenancy, within one year after [taking a protected action].
Source Link - 3 N.Y. Exec. Law § 296(2)(a)
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It shall be an unlawful discriminatory practice for any person, being the owner, lessee, proprietor, manager, superintendent, agent or employee of any place of public accommodation, resort or amusement, because of the race, creed, color, national origin, citizenship or immigration status, sexual orientation, gender identity or expression, military status, sex, disability, marital status, or status as a victim of domestic violence, of any person, directly or indirectly, to refuse, withhold from or deny to such person any of the accommodations, advantages, facilities or privileges thereof, including the extension of credit, or, directly or indirectly, to publish, circulate, issue, display, post or mail any written or printed communication, notice or advertisement, to the effect that any of the accommodations, advantages, facilities and privileges of any such place shall be refused, withheld from or denied to any person on account of race, creed, color, national origin, citizenship or immigration status, sexual orientation, gender identity or expression, military status, sex, disability or marital status, or that the patronage or custom thereat of any person of or purporting to be of any particular race, creed, color, national origin, citizenship or immigration status, sexual orientation, gender identity or expression, military status, sex or marital status, or having a disability is unwelcome, objectionable or not acceptable, desired or solicited.
Source Link - 4 NY Real Prop. § 226-C
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…rent increase equal to or greater than five percent…If the tenant has occupied the unit for less than one year and does not have a lease term of at least one year, the landlord shall provide at least thirty days’ notice…
Source Link - 5 N.Y. Real Prop. Law § 226-C(1)(a) & (2)
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1. (a) Whenever a landlord intends to offer to renew the tenancy of an occupant in a residential dwelling unit with a rent increase equal to or greater than five percent above the current rent, or the landlord does not intend to renew the tenancy, the landlord shall provide written notice as required in subdivision two of this section.
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2.(a) For the purposes of this section, the required notice shall be based on the cumulative amount of time the tenant has occupied the residence or the length of the tenancy in each lease, whichever is longer.
(b) If the tenant has occupied the unit for less than one year and does not have a lease term of at least one year, the landlord shall provide at least thirty days’ notice.
(c) If the tenant has occupied the unit for more than one year but less than two years, or has a lease term of at least one year but less than two years, the landlord shall provide at least sixty days’ notice.
(d) If the tenant has occupied the unit for more than two years or has a lease term of at least two years, the landlord shall provide at least ninety days’ notice.
Source Link - 6 N.Y. Real Prop. Law § 233-B(1) - (3) & (6)(a)
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1. The provisions of this section shall apply to all manufactured homes located in a manufactured home park as defined in section two hundred thirty-three of this article, however manufactured homes located in manufactured home parks that are subject to a regulatory agreement with a governmental entity to preserve affordable housing or that otherwise limits rent increases are exempt from the provisions of this section.
2. Increases in rent shall not exceed a three percent increase above the rent since the current rent became effective.
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3. An increase above three percent may be challenged by an aggrieved manufactured homeowner as unjustified.
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6. (a) In determining whether a rent increase is permissible, the court shall consider the provisions of paragraphs (a), (b) and (c) of subdivision two of this section. Notwithstanding the above, rent increases shall not exceed six percent above the rent since the current rent became effective, except upon the approval of a temporary hardship application by the court. …
Source Link - 7 NYC Admin. Code § 26-511.1(6)
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An approval for a temporary major capital improvement increase shall not include retroactive payments. The collection of any increase shall not exceed two percent in any year from the effective date of the order granting the increase over the rent set forth in the schedule of gross rents, with collectability of any dollar excess above said sum to be spread forward in similar increments and added to the rent as established or set in future years.
Source Link
