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February 5, 2024

How Much Can a Landlord Raise Rent in New York in 2024?

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When Can a Landlord Raise Rent in New York?

In New York, a landlord is typically allowed to raise the rent on an apartment once the existing lease term concludes. The specific regulations governing rent increases vary, particularly between New York City (NYC) and other parts of the state, due to varying rent stabilization policies. Consider getting landlord insurance in New York before the rental agreement starts to cover any damages.

For rent-controlled and rent-stabilized apartments in NYC, landlords can only increase rent based on guidelines set annually by the New York City Rent Guidelines Board. Rent increases for these units are allowed once per year and must align with the percentages approved by the board.

  • Rent-Controlled Units: Adjustments usually occur annually and require a landlord to file appropriate paperwork. The Maximum Base Rent (MBR) system mandates the filing of an MBR application before an increase can take place.
  • Rent-Stabilized Units: Notice for rent increases should also follow the Rent Guidelines Board's rules, and increases can only be implemented after the current lease ends.

For market-rate or non-regulated apartments, landlords have more flexibility. They can raise the rent to market levels at the end of a lease term. However, they are required to provide tenants with advance notice—30 days for increases under 5%, 60 days for increases between 5-10%, and 90 days for increases over 10%, ensuring tenants have adequate time to decide on lease renewal or to seek alternative housing.

Tenants in New York should be vigilant and informed about their rights regarding rent increases. Landlords seeking to raise rent should ensure they are in full compliance with relevant legal regulations, specifying the changes in a renewed lease agreement to maintain transparency and legality.

How Much Can a Landlord Raise Rent in New York?

In New York, the amount a landlord can raise rent depends heavily on the type of rental unit. For rent-stabilized apartments, the New York City Rent Guidelines Board (NYCRGB) sets annual limits. These rent increase percentages are determined based on various economic factors and applicable to lease renewals.

For example, in recent years, they have dictated increases such as:

  • 1-year lease: up to 1.5%
  • 2-year lease: up to 2.5%

Regular apartments that are not rent-stabilized generally have no cap on rent increases, as long as they comply with lease agreements and provide proper notice. It's worth noting landlords often observe market rates and standard increments to stay competitive.

It's customary for landlords to adjust rent by 2 - 3% annually, though this is not mandated by law for unregulated apartments. Any increase above 5% may require additional notice for the tenant, ensuring they have ample time to accommodate the changes. In rent-controlled units, increases are subject to the Maximum Base Rent formula and are reviewed biennially.

Here are key points on rent increases in New York:

  • Rent-Stabilized Apartments: Governed by the NYCRGB.
  • Regular Apartments: Subject to lease terms and sufficient notice.
  • Rent Control: Must follow Maximum Base Rent system.

Landlords should meticulously follow all rent guidelines to maintain compliance and fair practice.

How Can You Have Fixed Rent in New York?

In New York, tenants can secure a fixed rent through two main mechanisms: rent control and rent stabilization. Rent control applies to residential buildings constructed before February 1947 where the tenant or their lawful successor has been continuously living since before July 1, 1971. These units' rent increases are tightly regulated by the state and can only go up by a small and legally prescribed percentage annually.

Rent stabilization, on the other hand, covers many post-1947 buildings with six or more units, and some buildings converted to apartments from other uses. When a tenant signs a stabilized lease, they can choose between a one- or two-year lease agreement. During the lease term, the rent can't be increased unless dictated by the NYC Rent Guidelines Board. At the end of the term, increases are restricted to percentages set by the Board.

For a truly fixed rent scenario, a tenant can negotiate a longer lease with the landlord. While rare, some landlords may agree to a multi-year lease with a fixed rent to ensure a steady, long-term occupancy.

  • Rent Control: Continuously occupied pre-1947 buildings
  • Rent Stabilization: Post-1947 buildings, set increases during lease term
  • Longer Leases: Possible fixed rent for the agreed period

Lastly, a rent freeze program protects eligible senior citizens and disabled tenants from increases. They must meet specific criteria, including age, income, and tenancy in a rent-controlled or stabilized apartment.

In summary, tenants in New York can have fixed rent by residing in rent-controlled units, signing stabilized lease agreements, negotiating long-term leases, or qualifying for a rent freeze.

When Can an Increase in Rent Become Illegal in New York?

In New York, landlords are bound by specific regulations that determine the legality of rent increases. Firstly, increases must comply with the Housing Stability and Tenant Protection Act of 2019, which imposes strict rules aimed at protecting tenants.

Legality of Rent Increases:

  • Legal Rent: Landlords are required to adhere to the legally registered rent amounts. An increase above this without proper legal adjustments can constitute an illegal act.
  • NYC Rent Increase Laws: These laws stipulate when and how much a landlord can increase rent for rent-controlled or rent-stabilized units, often capping the maximum amount that may be charged.

Circumstances Leading to Illegal Rent Increases:

  • A rent increase that violates terms set by the Fair Housing Act, such as targeted discrimination, is unlawful.
  • Lack of adequate notice before a rent hike can also render the increase illegal. The landlord must provide tenants with a reasonable notice period, typically 30 to 90 days depending on the percentage of the rent increase and duration of tenancy.
  • Retaliation through a rent increase against a tenant who has exercised a legal right, filed a complaint, or joined a tenants' union is prohibited.

Dispute Resolution:

  • If tenants believe a rent increase is unlawful, they can file a dispute with New York's Division of Housing and Community Renewal (DHCR) or pursue legal action in court.
  • Legal advice and assistance are available to ensure that tenants' rights are upheld according to the stipulations of local and state laws.

Rent increases are a natural part of the housing market. However, in New York, they are closely regulated to ensure fairness and to prevent exploitation of tenants. Landlords should always ensure they operate within the legal frame to avoid sanctions and preserve the rights and stability of their tenants.

Is There a Certain Limit to Rent Increment in New York?

In New York, the rules governing the limits on rent increase are influenced heavily by whether a property is subject to rent stabilization or not. For rent-stabilized apartments, the Rent Guidelines Board (RGB) sets the maximum base rent (MBR) and dictates the permissible increase every year.

Here's how it works:

  • For Rent Stabilized Units: The RGB announces the approved percentage by which landlords may raise the rent each year for lease renewals. The exact percentages can vary annually.
  • For Units Not Subject to Rent Stabilization: There are no set limits on how much a landlord can increase the rent. However, the landlord must adhere to the terms of the lease and give appropriate notice before raising the rent.

It's important to note the following:

  • Landlords must provide either a 30-day, 60-day, or 90-day advance notice of a rent increase, depending on how long the tenant has lived in the unit and how much the rent is being increased.
  • Rent stabilization rules ensure that increases are fair and consistent, but they do not apply to buildings constructed after 1974 or to units that are rent-controlled.

For specific percentages and details on rent stabilization rules, tenants and landlords in New York should refer to the guidelines set by the Rent Guidelines Board.

The Rent Increase Notice in New York

In New York, landlords must adhere to specific guidelines when it comes to rent increase notices. For month-to-month tenants, owners are required to provide a written notice - a critical step before adjusting the rent payment. The duration of this notice varies based on how long the tenant has been residing in the unit.

Here are the notice periods required by New York law:

  • Less than one year of occupancy: 30 days' notice
  • One to two years of occupancy: 60 days' notice
  • More than two years of occupancy: 90 days' notice

For tenants with a renewal lease, the situation differs. In New York City, the Renewal Lease Form must be sent between 90 to 150 days before the lease's expiration. This allows tenants ample time to consider their options and either accept the new lease terms, with the adjusted rent, or plan to move.

Tenants living in rent-controlled or rent-stabilized apartments are subject to increase guidelines set by the local Rent Guidelines Board. The allowable increase and the notice period can be more regulated and might be detailed within the provisions set by the local Rent Guidelines Board.

It's crucial for landlords to follow these protocols rigorously to enforce legal rent increases. In turn, tenants should be aware of their rights and the notice they are entitled to, ensuring they have sufficient time to respond to the changes proposed by the owner.

Frequently Asked Questions

Navigating the complexities of rental laws, the section answers pressing questions for tenants and landlords in New York State regarding rent increase policies as of 2023.

Things Landlords Cannot Do In New York

What are the legal stipulations for rent increases in New York State as of 2023?

In New York State, landlords must follow guidelines set by local Rent Guidelines Boards, particularly in New York City, where they are governed by specific laws on when and how much rents can be increased for certain types of rental units.

What is the maximum percentage a landlord can raise the rent within a year in New York?

For rent-stabilized apartments in New York City, the NYC Rent Guideline Board determines the maximum rent increase annually. In 2023, the board set a specific limit on how much rents can be raised, reflecting the current economic climate and rental market.

What notice period must landlords provide before enacting a rent increase in New York State?

Landlords are required to give tenants proper notice before increasing the rent. This includes a 60-day notice for tenants who have resided in their apartment for more than one year but less than two years, and a 90-day notice for tenants who have lived there for over two years or have a lease term of at least two years.

What is the new rent control legislation in New York, and how does it affect rent increases?

The Housing Stability and Tenant Protection Act of 2019 brought significant changes, particularly for those in rent-controlled or rent-stabilized apartments. This legislation affects how much landlords can raise rent, aiming to protect tenants from steep increases.

What rights do tenants have when facing a rent increase in New York?

There are various tenant rights in New York under state law, including the right to receive proper notice of rent increases and to have their lease renewed. For those in rent-regulated units, tenants have additional rights to challenge increases that exceed the set guidelines.

How do rent increase regulations in New York State compare to those of New Jersey?

Regulations on rent increases can differ significantly between New York State and New Jersey, with New York State generally having more robust laws and tenant protections in place regarding the control of rent increases, especially in rent-stabilized and rent-controlled apartments.

This post is for informational purposes only and does not serve as legal, financial, or tax advice. Consult your own legal, financial, or tax advisor for matters mentioned here. The information on this site is general in nature. Any description of coverage is necessarily simplified. Whether a particular loss is covered depends on the specific facts and the provisions, exclusions and limits of the actual policy. Nothing on this site alters the terms or conditions of any of our policies. You should read the policy for a complete description of coverage. Coverage options, limits, discounts, deductibles and other features are subject to individuals meeting our underwriting criteria and state availability. Not all features available in all states. Discounts may not apply to all coverages. Steadily is not liable for any actions taken based on this information. If you believe any of this information may be inaccurate please contact us.

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