A publication of New York State
Division of Housing and Community Renewal
Office of Rent Administration
Fact Sheet #26 - Guide to Rent Increases for Rent Stabilized
Apartments in New York City
[Revised 2/97]
This is a guide to rent increases for Rent Stabilized Apartments in New
York City.
A tenant may separately request from the New York State Division of
Housing and Community Renewal (DHCR) a printout of the rent registration
information on file for the tenant's apartment and it will be sent to the
tenant in a separate mailing. This printout and this guide will assist the
tenant in reviewing the rental history of the tenant's apartment.
The rent registration printout will show the rents the building owner
registered with DHCR for the tenant's apartment for the last four years. Rent
changes occurring after April 1 of a given year will be included in the rent
shown for April 1 of the following year.
In addition to the rent increases discussed in this fact sheet, a tenant's
rent may be affected by prior cases relating to the tenant's apartment. The
tenant may request from DHCR a printout showing any prior cases affecting the
rent of the tenant's apartment. This printout, as well as the rent registration
printout mentioned above, may be obtained by visiting one of DHCR's offices and
speaking to a counselor. The reverse side of this fact sheet lists DHCR's offices.
Three common ways owners may increase rents are:
- Lease Increases approved by the New York City Rent Guidelines Board (NYC
RGB).
When an apartment is rented to a new tenant, the owner is allowed to
increase the last tenant's rent by the most recently approved guidelines
adjustment for the one- or two-year lease term, whichever the new tenant
chooses, plus an adjustment called the vacancy allowance. When a tenant
signs a renewal lease, the rent increase for the renewal lease will only be the
adjustment for a one- or two-year lease. Listed below are increases approved
by the NYC RGB for leases commencing since October 1, 1992.
Leases Starting Between:
10/1/92 - 9/30/93
1 Year = 3%
2 Year = 5%
New Lease Vacancy Allowance = 5%
10/1/93 - 9/30/94
1 Year = 3%
2 Year = 5%
New Lease Vacancy Allowance = 5%
(Applies to apts. with rents of less than
$500.00 per month on 9/30/93)
New Lease Vacancy Allowance = 3%
(Applies to apts. with rents of less than
$999.99 per month on 9/30/93)
10/1/94 - 9/30/95**
1 Year = 2%
2 Year = 4%
New Lease Vacancy Allowance = 5%
(Applies to apts. with rents of less than
$1000.00 per month on 9/30/94)
New Lease Vacancy Allowance = 10%
(Applies to apts. with rents of less than
$400.00 per month on 9/30/94
in buildings with 30 units or less)
10/1/95 - 9/30/96**
1 Year = 2%
2 Year = 4%
New Lease Vacancy Allowance = 8.5%
10/1/96 - 9/30/97**
1 Year = 5%
2 Year = 7%
New Lease Vacancy Allowance = 9%
Notes:
The NYC RGB did not authorize a vacancy allowance for apartments with rents
of $1,000.00 or more per month on 9/30/93 and 9/30/94.
In certain years, in addition to the renewal and vacancy guideline
increases, the NYC RGB has ordered an additional amount ("supplementary
adjustment") for apartments renting at or below a certain amount on the September
30th prior to the start of the lease. For example, an apartment renting for
$400.00 or less on September 30, 1995, or on September 30, 1996 , is eligible
for a $20.00 per month increase in addition to the guidelines and vacancy
allowance increases.
Examples on how to apply the Rent Guidelines Board's Adjustments:
Examples on how to apply the Rent Guidelines Board's Adjustments:
9/30/94 Present Rent = $450.00
10/1/94 1 Yr. Renewal Rent = $450 x {1 + .020} = $459.00
10/1/94 2 Yr. Renewal Rent = $450 x {1 + .040} = $468.00
10/1/94 2 Yr. Vacancy Rent = $450 x {1 +.040 + .050}= $501.75
- Major Capital Improvement rent increases approved by DHCR.
Where an owner makes a building-wide improvement, such as the
installation of a new boiler, the owner may be entitled to collect from each
rent stabilized tenant in the building a major capital improvement (MCI) rent
increase. The MCI increase may not be charged until a DHCR order is issued
authorizing the charge and setting the amount. The MCI increase is allocated
on a per-room basis, and becomes part of the legal regulated rent for the
purpose of computing future lawful increase. (See Fact Sheet #11, "Rent
Increases for Major Capital Improvements," for additional information.)
- Individual Apartment Improvement rent increase.
Where an owner installs a new appliance in, or makes an improvement to,
an apartment, the owner may be entitled to increase the rent of that apartment
for the new appliance or improvement.
If an apartment has a tenant in occupancy, the owner can only receive a
rent increase for the individual apartment improvement if the tenant consents
in writing to pay an increase for the improvement(s). However, if the
apartment is vacant, tenant consent is not required. The increase to the
tenant's rent is 1/40th of the total cost of the improvement including
installation. For example, if a new refrigerator is installed in an apartment,
and the owner's expense is $320.00, the tenant's rent would increase by: 1/40
x $320.00 = $8.00 per month. The increase, if taking place on a vacancy, is
not compounded by the guidelines increases, but rather should be added to the
lawful rent after application of the guidelines increases. [See Fact Sheet
#12, "Rent Increases for New Services, New Equipment or Improvements to An
Apartment," for additional information.]
If a tenant believes that his or her rent exceeds the lawful rent, DHCR
recommends that the tenant discuss this with the building's owner or managing
agent before filing an overcharge complaint with DHCR. If the tenant is unable
to resolve the problem with the owner, and the tenant has reason to believe
that his or her rent exceeds the lawful rent, the tenant may file an
overcharge complaint with DHCR. An overcharge complaint form may be obtained
by calling DHCR's Rent InfoLine at (718) 739-6400 or by visiting a Borough
Rent Office.
A tenant's complaint must be filed with DHCR within four years of the
first overcharge alleged. A tenant's failure to comply with the time limit for
filing an overcharge complaint will result in the tenant's inability
to challenge the lawfulness of the rent.
Security Deposit
The amount of a security deposit is usually equal to one month's rent.
However, if a tenant deposited a two-month security deposit with the owner
when the apartment first came under rent stabilization, the owner may continue
to collect from that tenant a security deposit equal to two months rent. The
next rent stabilized tenant, however, may not be required to deposit more than
one month's rent as security.
When a lease is renewed at a higher rent, or the rent is increased during
the term of the lease, the owner may collect additional money from the tenant
to bring the security deposit up to the new monthly rent.
If after the tenant vacates the apartment, the tenant disagrees with the
owner over the payment of interest or the return of the security deposit, and
such disagreement cannot be resolved between the owner and the tenant, the
tenant may contact the Consumer Frauds and Protection Bureau of the New York
State Attorney General's Office or begin a proceeding in a court of competent
jurisdiction (usually, small claims court.)
For more information or assistance, call the DHCR Rent InfoLine
(718) 739-6400, or visit your Borough or County Rent Office.
Central
92-31 Union Hall Street
4th Floor
Jamaica, NY 11433
(718) 739-6400
Brooklyn
55 Hanson Place
7th Floor
Brooklyn, NY 11201
Upper Manhattan
163 W. 125th Street
5th Floor
New York, NY 10027
North side of 110th St. and above
Nassau County
50 Clinton Street
6th Floor
Hempstead, NY 11550
Westchester County
55 Church Street
White Plains, NY 10601
Lower Manhattan
156 William Street
9th Floor
New York, NY 10038
South side of 110th St. and below
Bronx
1 Fordham Plaza
2nd Floor
Bronx, NY 10458
Staten Island
60 Bay Street
7th Floor
Staten Island, NY 10301
Rockland County
94-96 North Main Street
Spring Valley, NY 10977
Reissued 2/97
