In 2025, understanding New York’s rent increase laws is essential for both tenants and landlords, particularly given the complexities of rent regulation across different types of apartments. The legal framework is primarily divided into rent control and rent stabilization, each with distinct rules governing how and when rents can be increased.
Overview of Rent Control and Rent Stabilization
Rent Control
Rent control applies to buildings constructed before 1947 and offers strong protections for tenants. Landlords are limited in how much they can increase rent, typically following guidelines set by the New York State Division of Housing and Community Renewal (DHCR). Increases are determined based on a Maximum Base Rent (MBR) system, which is reviewed every two years. For example, landlords can increase rents according to an average of the last five annual increases from the Rent Guidelines Board (RGB).
Rent Stabilization
Rent stabilization covers buildings with six or more units built between 1947 and 1974 or those that opted for stabilized rents in exchange for tax benefits. The RGB sets annual limits on rent increases for these units. For leases renewed between October 2023 and September 2024, permissible increases were set at approximately 2.75% to 3.20%, depending on lease duration. This system aims to balance landlord income with tenant affordability while preventing sudden spikes in rent.
Legal Framework for Rent Increases
Notice Requirements
Landlords must provide advance notice before raising rent, which varies based on the percentage increase:
- 30 days for increases under 5%
- 60 days for increases between 5% and 10%
- 90 days for increases over 10%
This requirement ensures tenants have adequate time to consider their options regarding lease renewal or seeking alternative housing.
Calculating Lawful Rent Increases
Rent increases must comply with specific regulations. For rent-stabilized apartments, landlords can only raise rents according to the RGB’s guidelines. Factors such as Major Capital Improvements (MCI) and Individual Apartment Improvements (IAI) may justify additional increases, but these must be transparently communicated to tenants.
For example, if a landlord undertakes significant renovations that enhance the property’s value, they can apply for a rent increase that reflects a fraction of the improvement costs spread over a defined period.
Tenant Rights and Protections
Tenants in New York have robust rights regarding rent increases:
- They can challenge excessive or unjustified increases through legal channels.
- Protections against eviction due to non-payment of unjustified rent increases are also in place.
- Tenants should be aware of preferential rents, which may allow them to pay less than the legal regulated amount.
Navigating New York’s rent increase laws in 2025 requires an understanding of both state regulations and local ordinances. Tenants should remain vigilant about their rights under the law, especially concerning notice requirements and permissible increase limits. Landlords must adhere strictly to these regulations to maintain compliance and avoid potential penalties. By staying informed, both parties can work towards fair rental practices that protect tenant rights while allowing landlords to manage their properties effectively.
SOURCES
[1] https://www.steadily.com/blog/how-much-can-a-landlord-raise-rent-in-new-york
[2] https://www.steadily.com/blog/rent-increase-laws-regulations-new-york
[3] https://www.steadily.com/blog/rent-increase-laws-regulations-new-york-ny
[4] https://www.doorloop.com/laws/new-york-rent-control-laws
