The New York City Rent Guidelines Board (NYCRGB) sets annual limits on rent increases for rent-stabilized units. For lease renewals from October 1, 2021, to September 30, 2022, permitted increases include a
- 0% raise for the first six months of a one-year lease starting within that period,
- followed by a 1.5% increase for the next six months,
- or a 2.5% increase for a two-year lease initiated during the same timeframe.
For renewals from October 1, 2021, to September 30, 2023, the allowed increases are 3.25% for one-year leases and 5% for two-year leases.
For example, if your rent is $1,500 and your lease ends on 9/1/23, a one-year renewal could raise it to $1,548.75, while a two-year renewal could increase it to $1,575. Separate Rent Guidelines Boards oversee Nassau, Westchester, and Rockland counties.
In NYC, rent-controlled units permit landlords to increase rent by the lesser of the average of the last five annual increases or 7.5% annually until reaching the Maximum Base Rent (MBR), which is reviewed every two years.
Rent-controlled apartments are generally in buildings constructed before February 1, 1947, and occupied continuously by tenants since before July 1, 1971. According to the 2021 NYC Housing and Vacancy Survey, about 16,400 rent-controlled apartments remain in NYC.
Generally, rent increases in NYC are negotiable. You can try to negotiate a lower renewal rate with your landlord, but keep in mind they are not obliged to accept your offer, especially if you live in a free-market apartment and suggest a below-market rent. Additionally, in such cases, the landlord has no obligation to renew your lease.
Most landlords prefer to renew with existing tenants to reduce vacancy and avoid the costs of cleaning, repainting, and minor repairs. Similarly, tenants often prefer renewal to save on moving costs, broker fees, and hassle. If you have been respectful and low-maintenance, your landlord might agree to a renewal rate slightly below fair market value. For example, if your rent is $5,000 and the market rate is $6,000, the landlord might accept around $5,800/month.
While this means the landlord foregoes $2,400 in potential rent, it’s a small price compared to the costs of cleaning, repairs, and vacancy risk. For you, as the tenant, renewing at $5,800/month offers several advantages.
Your landlord can legally increase your rent by more than 5% if you live in an unregulated apartment. There are no laws limiting rent increases or annual hikes for free-market apartments.
However, landlords in unregulated NYC apartments must give proper notice when raising rent by more than 5% or when choosing not to renew a lease. The required notice is 30 days for leases shorter than 12 months, 60 days for leases of 1 to 2 years, and 90 days for leases of at least 2 years.
If your landlord does not give sufficient notice, you have the right to stay at your current rent until the notice period ends.
The simplest way to reduce rent hikes in NYC is to maintain a good relationship with your landlord, especially if they are an individual rather than a large corporation. When your landlord perceives you as a good person and develops an emotional bond, they are less likely to push for the maximum rent increase during lease renewal negotiations.
Below are some tips for building a strong relationship with your NYC landlord:
Avoid rudeness and passive aggression.
The most counterproductive thing you can do as a tenant is to be rude or passive-aggressive. Landlords see tenants who send harsh emails over minor issues as particularly problematic. This behavior can ruin your chances of renewing your lease.
Additionally, being passive-aggressive, especially when combined with slow responses to reasonable requests such as access for a plumber, can anger your landlord. Such actions may lead to no renewal offer or aggressive negotiations to recover costs.
Since evictions are costly and complicated in New York, a landlord will likely avoid tenants they view as confrontational or litigious.