How Much Can Your Landlord Raise Your Rent in NYC?

How much your landlord can raise your rent in NYC depends on what type of apartment you live in. The first thing you should do is figure out whether you live in a free-market (“unregulated”) apartment or a “regulated” apartment, such as a rent-stabilized or rent-controlled unit.

There is no limit to how much your landlord in NYC can raise your rent in NYC if you live in an “unregulated” (free market) apartment, provided your landlord gives proper notice.

If you live in a “rent stabilized” unit, the allowable annual rent increase is set by the New York City Rent Guidelines Board (NYCRGB).

If you live in a rent controlled NYC apartment, landlords may raise rents the lesser of either: a) the average of the five most recent Rent Guidelines Board annual rent increases for one year renewal leases, or b) 7.5% percent each year until they reach the Maximum Base Rent (MBR) established for your specific apartment.

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I live in a free-market NYC apartment. How much can my landlord raise my rent?

How much can my NYC landlord raise the rent for a regulated apartment?

Are rent increases negotiable in NYC?

My landlord raised the rent by more than 5%. Is it legal?

How to minimize rent increases in NYC

There is no limit to how much your landlord in NYC can raise your rent in NYC if you live in an “unregulated”, free market apartment, provided your landlord gives proper notice.

Approximately 937,000 of NYC’s 2.2 million rental properties are unregulated “market rate” apartments, according to the NYC Rent Guidelines Board. This means that there is no regulation with respect to the amount of rent a landlord may charge, the year-over-year rate of increase and whether or not a renewal is even offered.

However, landlords of unregulated units are subject to strict notice periods for rent increases of 5% or more and non-renewals.

Notice periods are mandated by the NY Housing Stability & Tenant Protection Act of 2019 and depend on the length of your lease (or how long you’ve lived in the apartment).

If a landlord does not intend to renew a lease or seeks to intends to raise the rent by more than 5%, the landlord must provide notice as follows:

• 30 days in advance of renewal if a tenant has lived in the apartment less than one year and has less than a 12-month lease

• 60 days in advance for a tenant who has lived in the apartment for one to two years or for a tenant with a lease term of between one and two years

• 90 days for a tenant who has lived in the apartment for more than two years or for a tenant with a lease term of at least two years

Allowable annual rent increases for rent stabilized units are set each year by the New York City Rent Guidelines Board (NYCRGB).

For lease renewals beginning between October 1, 2021 and September 30, 2022, the permissible rent increase for rent stabilized apartments is as follows:

● For a one-year lease commencing on or after October 1, 2021 and on or before September 30, 2022: 0% for the first 6 months of the lease and 1.5% for the remaining 6 months of the lease.

● For a two-year lease commencing on or after October 1, 2021 and on or before September 30, 2022: 2.5%

For lease renewals between October 1, 2022 and September 30, 2023, the permissible rent increase for rent stabilized apartments is as follows:

● For a one-year lease commencing on or after October 1, 2022 and on or before September 30, 2023: 3.25%

● For a two-year lease commencing on or after October 1, 2022 and on or before September 30, 2023: 5%

There are separate Rent Guidelines Boards for Nassau, Westchester and Rockland counties.

For “rent controlled” units in NYC, landlords may raise rents the lesser of either: a) the average of the five most recent Rent Guidelines Board annual rent increases for one year renewal leases, or b) 7.5% percent each year until they reach the Maximum Base Rent (MBR). A MBR is established for each rent controlled apartment and adjusted every two years to reflect changes in operating costs.

According to the NYC Rent Guidelines Board, “Rent Control tenants are generally in buildings built before February 1, 1947, where the tenant is in continuous occupancy prior to July 1, 1971.”

Rent controlled apartments in NYC are extremely rare. There are about 16,400 rent controlled apartments left in NYC according to the 2021 NYC Housing and Vacancy Survey (HVS).

Generally speaking, rent increases are negotiable in NYC. You may attempt to negotiate down a proposed renewal rate with your landlord. Keep in mind however that a landlord has no obligation to accept your counteroffer. This is especially true if you live in a free-market apartment and you’ve proposed a below-market rent. Moreover, in the case of a free-market apartment, a landlord has no obligation to renew your lease.

In general, most landlords prefer to renew an existing tenant versus having to find a replacement. Keeping a tenant reduces vacancy risk and obviates the need to spend money cleaning, repainting and touching-up the apartment in-between tenants. Similarly, most tenants prefer to renew because it means savings on moving costs and broker fees plus less hassle.

In light of the above, and assuming you’ve been a respectful and low-maintenance tenant, chances are that the landlord will agree to a renewal rate which is slightly below fair market value.

Your landlord may legally raise your rent by more than 5% if you live in an unregulated apartment. There are no laws which cap rents or annual increases when it comes to free-market apartments.

However, landlords of unregulated NYC apartments are required to provide sufficient notice when raising rent by more than 5% (or when declining to offer a renewal). The minimum notice period is 30 days for a lease term (or occupancy period) of less than 12 months, 60 days for a lease term (or occupancy period) of one to two years and 90 days for a lease term (or occupancy period) of at least two years.

If your landlord fails to provide adequate notice, you are entitled to remain in the unit at the current rental rate until the full notice period elapses.

The easiest way to minimize rent increases in NYC is to be on good terms with your landlord. This is especially true if your landlord is an individual as opposed to a large organization. If your landlord thinks you’re a good person and feels an emotional connection to you, it will be much harder for her or him to hold out for every last penny when it comes to a lease renewal negotiation.

Here are some tips for how to build the best possible relationship with your NYC landlord:

Don’t be rude or passive aggressive

The single most counterproductive thing you can do as a tenant is to be rude or passive aggressive. From a landlord’s perspective, there’s nothing worse than having a tenant who lacks a filter and has a tendency to send nuclear emails (particularly for trivial issues). Expect to have no chance of getting a good deal on a renewal if you behave in an uncivil manner.

Another way to draw the ire of your landlord is to be passive aggressive, particularly in conjunction with slow replies to reasonable requests (like allowing access for the plumber). If you fall into this trap, be prepared for your landlord to offer no renewal whatsoever, or to hold out for every last penny when negotiating with you.

It is extremely costly and difficult to evict tenants in New York, so your landlord will run for the hills if she or he even remotely suspects that you’re a combative / litigious person.

Don’t make it difficult for the landlord to access the apartment

Your landlord will be unlikely to hold you in high regard if you make it difficult for repair workers and other 3rd parties to enter the property. Making it needlessly complicated for the landlord to arrange a repair costs the landlord time, and any landlord will seek to recover the perceived lost value of this additional time by being less flexible on a renewal price.

Pay your rent on time

If you consistently pay your rent late, your landlord will likely offer zero discount on any future rental rate and may even prefer to decline a renewal altogether. From a landlord’s perspective, paying rent late hits too close to home. After all, late rent today could be a sign that no rent whatsoever is on the horizon next month.

Sign a longer lease

Signing a longer lease is a great way to minimize rent increases over time. Landlords who agree to multi-year leases are usually going to be more flexible, as their interest in longer leases strongly suggests that they’re risk averse when it comes to possible vacancy periods and expenses associated with turning over an apartment between tenants.