The Rent Guidelines Board establishes annual rent increases for lease renewals for tenants in New York City’s rent-stabilized apartments. For leases beginning between October 1, 2024 and September 30, 2025, the maximum allowable increases are:
- 2.75% for a one-year lease renewal
- 5.25% for a two-year lease renewal
These caps apply to most rent-stabilized apartments and lofts, ensuring predictable and moderate increases for tenants.
Market-Rate (Unregulated) Apartments
Apartments that are not rent-stabilized or rent-controlled (also known as “free market” or “unregulated”) do not have a fixed cap on rent increases. Under the new “Good Cause Eviction Law,” rent increases exceeding 5% plus the local rate of inflation (CPI), up to a maximum of 10%, are considered unreasonable and can be challenged. Landlords seeking increases above this threshold must justify them, and tenants can challenge such increases in court.
Rent-Controlled Apartments
Rent-controlled units, which are becoming increasingly rare, have their own set of rules. Increases are determined by the Maximum Base Rent system, which is typically updated every two years. The allowed increase is usually less than the average of the five most recent Rent Guidelines Board annual increases, which is 7.5%.
Notice Requirements for Rent Increases
Regardless of apartment type, New York law requires landlords to provide written notice before increasing rent by 5% or more, or before choosing not to renew a lease. The required notice period depends on how long the tenant has lived in the apartment:
- 90 days’ notice if the tenant has lived there for two years or more, or has a two-year lease
- 60 days’ notice if the tenant has lived there for more than one year but less than two years
- 30 days’ notice if the tenant has lived there for less than one year or has a lease for less than one year
Individual Apartment Improvements (IAI)
Landlords may raise rents on rent-regulated apartments if they make qualifying improvements to individual units. However, these increases are strictly limited.
- The maximum monthly rent increase due to IAI is $89.29 in buildings with 35 or fewer apartments, and $83.33 in larger buildings.
- Only up to three IAIs are allowed in a 15-year period, and any IAI increase is removed from the rent after 30 years.
- Recent law changes also cap the total cost of improvements that can be passed on to tenants and require landlords to fix hazardous violations and use licensed contractors.
Key Takeaways for 2025
- For rent-stabilized tenants, the maximum increase is 2.75% for one-year leases and 5.25% for two-year leases.
- Market-rate tenants: There is no cap, but increases of more than 5% plus inflation (up to 10%) can be challenged.
- All tenants: Written notice required for increases of 5% or more—30, 60, or 90 days depending on tenancy length.
- Rent-controlled tenants: Increases set by state formula, usually lower than market rates.
- IAI rent increases: Strictly limited and regulated.
Tenants should review their lease, be aware of their apartment’s regulatory status, and understand their rights regarding notice and allowable increases. If you receive a rent increase notice, make sure it meets these requirements and seek help if you believe your rights are being violated.
Sources
- https://portal.311.nyc.gov/article/?kanumber=KA-03296
- https://rentguidelinesboard.cityofnewyork.us/2024-25-apartment-loft-order-56/
- https://www.nytimes.com/2025/04/12/realestate/nyc-good-cause-eviction-law.html
- https://ag.ny.gov/sites/default/files/changes-in-nys-rent-law.pdf
- https://rentpost.com/resources/article/raise-rent-laws-in-nyc/
