In New York, some apartments are rent-stabilized and others are known as “free market” apartments. With free market apartments, landlords can decide to charge whatever price they want. They can also increase this price if they’d like to do so, and there’s no limit on how much they can increase it. A landlord could theoretically double the rent.
If the apartment is considered rent-stabilized, this does not necessarily mean that the rent has been frozen. It can still increase and these apartments can get more expensive. There are simply limits on the percentage of increase based on the length of the lease.
What are the limits?
If someone signs a two-year lease right now, their landlord could legally raise their rent by 3.2%. If they sign a one-year lease, then the landlord could only raise the rent by 2.75%.
For example, someone may be living in an apartment that costs $2,000 a month. If they sign a new lease for the next year, the most their rent could increase to would be $2,055. If they signed a two-year renewal, conversely, then their rent could go up to $2,064.
Could this happen unexpectedly?
No, whether someone lives in a rent-control apartment or a free-market apartment, a rent increase should not be unexpected. Typically, they should get a notice at least 60 days in advance. If a tenant hasn’t even been in the apartment for a full year, then they need 30 days of notice if their rent is going to go up by more than 5%. Long-standing tenants, such as those who have lived in the same location for more than two years, may require a 90-day notice.
Rent increases can lead to disputes between landlords and tenants, so they need to understand the laws and all of their legal options.
