New York Rent Increase Laws

New York Rent Increase 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

Rent Stabilization outside of New York City

Rental units in buildings may be protected if they:

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.

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:

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:

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:

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:

When Can’t a Landlord Raise Rent in New York?

Landlords in New York may not raise the rent if:

In addition to the characteristics above, New York’s Human Rights Law [4] also prohibits discrimination due to:

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:

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:

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:

Sources

…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…

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.

…a rebuttable presumption that the landlord is acting in retaliation shall be created if the tenant establishes that the landlord…attempted to substantially alter the terms of the tenancy, within one year…

It shall be an unlawful discriminatory practice for any person, being the owner, lessee…because of the…military status…or status as a victim of domestic violence, of any person, directly or indirectly, to refuse, withhold from or deny to such personany of the accommodations…

…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…

…rent increase equal to or greater than five percent…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 lessthan two years, the landlord shall provide at least sixty days’ notice…

…rent increase equal to or greater than five percent…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.

An approval for a temporary major capital improvement increase…shall not exceed two percent in any year from the effective date of the order granting the increase over the rent…