Vacancy Leases
Leases can be divided into two main categories: RENEWAL and VACANCY Leases.
A tenant signs a Vacancy Lease when moving into a vacant apartment
OR if his/her name is added to a lease signed by existing tenants.
Prior to June 15, 1997 the increase in rent for vacancy leases
was governed by the NYC Rent Guidelines Board and the provisions of the Rent
Stabilization Law. A landlord could raise the rent for a vacant unit by the
VACANCY ALLOWANCE passed by the Rent Guidelines Board, PLUS the one or two
year lease renewal amount. In addition, 1/40th of the cost of any apartment
improvements could be added to the monthly rent.
After June 15, 1997 the increase in rent for a vacancy
lease is governed by the terms of the Rent Regulation
Reform Act of 1997. The formula of this act is complicated. In general,
the landlord can increase the rent by the following amounts:
- 18% if the tenant chooses a one year lease, 20% for a
two year lease;
- An additional 0.6% per year if the previous tenant was
in the apartment 8 or more years;
- Higher rates for units previously renting for $500 or
less;
- 1/40th of the Cost of apartment improvements can be added,
as previously.
To see how much the rent can be raised for a particular apartment,
try the RGB Vacancy Lease Calculator. You plug
in the numbers and the calculator figures out how much the rent can be raised
over the amount paid by the previous tenant.
The second lease (and subsequent leases) signed by a rent stabilized
tenant are RENEWAL leases. These increases are governed by the Orders
of the NYC Rent Guidelines Board.
