If you are looking to rent an apartment in NYC, there are some things you should know. First of all, there are laws and a cap on the amount that you can be charged for an increase in your rent. Also, some apartments are not subject to rent increases because they are non-stabilized. Your head might be swimming with questions about rent stabilization, but don’t worry – we’ll share the resources and answers you need.
If you are renting a non-stabilized apartment in Manhattan, you may be wondering what your options are. While most apartments are rent-stabilized, not all of them are.
There are a number of reasons why an apartment isn’t rent-stabilized. The most common reason is a major capital improvement. In most cases, rent increases for these types of buildings are capped at 2% per year for 30 years.
Another possible reason why a building is not rent-stabilized is if the landlord has received a tax abatement for the building. These are tax breaks that are granted to developers to rehab or convert a building into rental housing. For buildings with 35 units or fewer, landlords amortize these costs over 12 years.
If you don’t know if your apartment is rent stabilized, you can search online. You can plug in the building address to apartment listings sites to find out.
Depending on your rent, you may be able to negotiate for a fixed-rate lease. Some landlords will raise the price of a non-stabilized apartment after a few years of occupancy.
NYC rent laws
It’s been nearly a decade since the last big rental increase in New York City. But the city is on the cusp of another big jump in rental prices. The Rent Guidelines Board just approved the largest rent hikes in many decades, and the effects are set to take place this week.
The new hikes will bring rents up to about 3.25 percent for one-year leases signed between October 1 and September 30, 2023. For two-year leases, the maximum hike will be 5 percent.
In the past, the most significant rent increases have only been a few percentage points above the current market rate. However, with the new legislation, tenants can expect a hefty jump, and the average rent for a one-bedroom apartment in Brooklyn has increased close to 20%.
The new rules will give tenants who have lived in their apartments for at least two years a 90-day notice. There’s also a minimum notice period for leases that run for less than a year. Lastly, landlords are now required to pass on the costs of large improvements to tenants at 2% of the base rent.
NYC rent increase cap
Rent increases are limited in New York City. The city’s Housing and Community Renewal Division (HCRD) sets a maximum base rent for rent-controlled apartments in the city every two years. There are also annual rent increases based on inflation.
In recent years, however, rent increases have been relatively low. Some landlords say they are not sufficient to keep up with the rising costs of operating their buildings. Others say the increases are not enough to counteract the inflation that is sweeping the nation.
This month, the city’s Rent Guidelines Board approved a 3.25% rent increase for one-year leases and 5% for two-year leases. Although the increase is small, it is the largest in decades.
According to CHIP, the new rate will not cover half the cost of a recent eight percent increase in the operating costs of most rent-stabilized buildings. And CHIP says it does not take into account the true impact of the economic crisis on low- and middle-income people of color.
Why are NYC rent increases so steep?
For decades, the City of New York has had some form of rent control. It allows landlords to raise rents, but not much. The Rent Guidelines Board has been listening to tenants’ testimony, and deciding whether or not to allow rents to increase. This vote was a preliminary one, and could have a big impact on stabilized rents in New York.
There’s a massive disconnect between supply and demand in the housing market. In other words, rents are rising faster than home prices, and there aren’t enough affordable places to live.
To fix this problem, New York City has put in place different policies to help lower prices. Among them are the Fair Market Rent Appeal Guideline, which gives tenants one time to challenge a landlord’s base rent. However, there are many landlords who don’t follow basic codes. That’s why tenants have to fight so hard.
A major cause of the discrepancy between supply and demand is the pandemic’s effect on housing, which led to a large influx of people looking for rent-controlled housing. Since the pandemic, construction has slowed down. As a result, there aren’t enough apartments available to meet the need.