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This article provides general information and is not legal advice. For accuracy and specific guidance on landlord-tenant laws, consult an attorney before making any decisions or taking action.
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Unlike most states in the U.S. that lack rent control laws, there's a cap on maximum rent increase New York. This limit is designed to help manage affordable housing and prevent homelessness, often tailored to specific types of rental properties.
However, New York rent increase laws can be quite complex. The max rent increase New York varies depending on the type of property involved—whether it is a rent-stabilized apartment, a rent-controlled apartment, or neither.
Understanding these New York rent increase laws for 2024 is essential for both property owners and tenants navigating this intricate landscape.
This article aims to answer the question, “How much can landlords raise rent in New York?” We will also explore the relevant laws governing rent increases in the state.
The amount a landlord can increase rent in New York is largely determined by the type of rental unit.
For rent-stabilized apartments, the New York City Rent Guidelines Board establishes annual limits on rent increases. These percentages are determined based on various economic factors and apply to lease renewals.
Recent guidelines from the board have allowed for the following increases applicable from October 1, 2024 and on or before September 30, 2025:
In contrast, regular apartments that are not rent-stabilized typically do not have a cap on rent increases, provided landlords comply with lease agreements and give proper notice. Landlords often monitor market rates and implement standard increments to remain competitive.
It is common for landlords to raise rent by 2% to 3% annually; however, this is not legally mandated for unregulated apartments. If a rent increase exceeds 5%, landlords may be required to provide additional notice to tenants, allowing them sufficient time to adjust to the changes.
For rent-controlled units, any increases are governed by the Maximum Base Rent formula and are reviewed every two years.
New York City has some of the oldest rent control laws in the U.S., governed by state regulations. For landlords, it's crucial to understand the two main types of rent-regulated apartments: rent-controlled and rent-stabilized units.
Only about 1% of rental units fall under the older rent control program, which is slowly being phased out as tenants move or pass away. This program applies to apartments built before 1947 and only to tenants who have lived there since July 1, 1971.
When a rent-controlled tenant leaves, the apartment usually becomes rent-stabilized if it's in a building with over six units. In this case, rent increases are capped at 7.5% every two years, not exceeding the state's Maximum Base Rent.
Additionally, a rent-controlled tenant can pass their unit to a family member if that person has lived there for at least two years before the tenant's death.
Rent stabilization applies to apartments built before 1974 with more than six units. New owners can also choose this option for tax benefits.
In New York City, an apartment is considered rent-stabilized if it was built between February 1, 1947, and December 31, 1973, or if there were tenants in the building before February 1, 1947, who moved in after June 30, 1971.
Outside NYC, rent-stabilized criteria include buildings constructed before January 1, 1974, with more than six units that haven't been converted into condos or cooperatives.
The Rent Guidelines Board determines the maximum base rent for these units by comparing current real estate costs with the cost of living. Over the past decade, annual rent increases have varied from 0% to 4.5%, subject to change.
Raising rent in New York requires careful consideration and adherence to legal guidelines. Here’s a step-by-step guide to raising rent in New York.
Before establishing your new rent price, research your local rent increase laws and consider how much you can afford each month without stretching your budget.
By looking at the market conditions and how much money you have coming in (cash flow), you can arrive at a more informed decision on setting a new rental price that is fair to the tenant and will ensure all rental-related costs are covered. Online resources like Rentometer or Zillow Rent Estimate can assist in conducting a comprehensive market analysis of rentals in Florida.
Typically, landlords are allowed to implement annual rent increases for all housing except rent-stabilized apartments.
Write a clear notice to your tenant stating the new rental increase for the renewed lease term. The notice can be delivered by email with a link or in written form.
While there is no limit on rent increases in homes or units that don’t fall under rent-stabilized housing, landlords must still give tenants notices.
Here is a breakdown of a minimum advance notice for different leases:
These notices apply to month-to-month rent increases in New York and fixed-term rental agreements.
Stay informed about New York rent increase laws 2024 to ensure compliance and understand tenant rights regarding potential disputes over increases. Remember that any rent increase deemed retaliatory or discriminatory is illegal under state law.
Before implementing any rent increase in New York, it is essential for landlords to be familiar with the legal notice requirements and processes. The amount of notice required depends on the duration of the lease and whether the unit is rent-stabilized, rent-controlled, or neither.
Per the Housing Stability and Tenant Protection Act of 2019, landlords for market-rate apartments are required to provide tenants with the following notice periods:
For rent-stabilized apartments, the New York City Rent Guidelines Board sets the maximum allowable rent increases for lease renewals. Landlords must give tenants a renewal lease between 90 and 150 days before the existing lease expires.
Rent-controlled apartments have their rent increases determined by the Maximum Base Rent system and require a separate set of notices through the Division of Housing and Community Renewal.
Download Free New York Rent Increase Notice Letter
Under N.Y. Real Prop. Law § 233-B, annual rent increases for mobile homes are limited to 3%. The only exception to this limit is if the mobile home park owner can justify a higher increase in accordance with the law. For example, rent may be raised if the owner faces increased operating expenses, property taxes, or costs related to capital improvements.
However, it is important to note that no mobile home park owner can't raise the rent by more than 6% in any given year unless they have received a temporary hardship exception or emergency relief from a court.
According to New York rent increase laws, rent increases must adhere to both federal and state fair housing laws to be considered legal. As such, landlords cannot implement rent increases to discriminate against protected classes or as a form of retaliation towards tenants for exercising their rights.
Under the federal Fair Housing Act, protected classes include race, color, religion, sex, national origin, familial status, or disability. The New York State Human Rights Law and New York City Human Rights Law further expand these protected classes to include age, marital status, military status, sexual orientation, citizenship status, partnership status, gender identity, and lawful source of income.
Navigating New York’s rent increase laws can be quite challenging due to the complex legislation and frequently changing guidelines. However, using a property management system like Landlord Studio can significantly simplify this process for landlords.
Landlord Studio is a user-friendly platform that streamlines rent collection, automates notifications for rent increases, and helps you stay organized and compliant with local regulations. With its comprehensive features, landlords can effectively manage their rental properties while ensuring adherence to the law.
Create your free Landlord Studio account today to collect rent online, automate your income tracking, and simplify late fees, rent reminders and rent increases.
