New York Rent Increase Laws

New York Rent Increase Laws

Last Updated: January 9, 2024 by Jessica Menefee

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. In addition, mobile home units throughout the state are protected by a cap on rent increases.

Rent Control in New York

Typically, buildings built before February 1, 1947, where the tenant has lived there continuously since July 1, 1971, or a qualifying family member gains succession rights are protected by rent control.

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

note

 There are many exceptions, including some rent-stabilized units in newer buildings where the developer has opted into the rent-stabilization program to obtain tax benefits. Tenants should use the Housing and Community Renewal Rent Regulated Building Search or use their contact form to find more information.

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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 MBR Application before increasing the rent at the end of the lease term. Every two years, the 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:

  • Are continuing to provide all essential services (like heat when required)
  • Have removed 100% of all rent-impairing violations
  • Have removed 80% 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 as well as provide the 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. The tenant must respond to the Renewal Lease Form 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 rent during the lease or if:

  • The tenant agrees in writing and the landlord increases services or equipment or makes improvements to the apartment
  • 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 in response to a protected tenant action, such as filing a complaint. This is known as “retaliation.
  • 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?

    Unless the unit is protected by rent control or rent stabilization, landlords in New York can increase the rent as often as they choose as long as they provide sufficient notice each time and wait until the end of the lease term.

    If the unit is protected, increases are 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.

    note

    In a rent-controlled or rent-stabilized apartment, a landlord may be able to increase the rent during the lease term by making certain improvements and meeting the required 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? 

    In New York, if a rental unit is not rent controlled, rent stabilized, or a mobile home, the landlord can raise the rent by any amount, but they must follow the rules for rent increases.

    Rent Controlled Unit 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 that 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 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.

    For example, in New York City, for lease renewals that occur between October 1, 2022, and September 30, 2023, the maximum rent increase is 3.25% for a one-year lease renewal and 5% for a two-year lease renewal. (see Order #53)

    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 – An application to the DHCR can be submitted for a temporary rent increase if more than 35% of the building’s units are rent-regulated and the landlord has made certain improvements. If approved, the landlord can increase the rent by up to 2% per year (See Fact Sheet #24).
    • Individual Apartment Improvements – With tenant consent, and filing with the DHCRlandlords can increase the monthly rent at the following rates, up to an improvement cost of $15,000
    • Preferential Rents – This criterion should be used as the basis for rent increases for the remainder of that tenancy(See Fact Sheet #40).
    • Senior Citizen Exemption – Low-income renters aged 62 or older are exempt from many rent increases as long as they are paying a minimum of one-third of their disposable income on rent (See SCRIE).
    • Disability Exemptions – Exempts disabled, low-income renters over 18 years old from many rent increases as long as they are paying a minimum of one-third of their disposable income on rent(see DRIE).

    Sources