You may be under the assumption that there are laws in place to prevent your landlord from increasing your rent too much, right? But that isn’t always the case. We’ll look into NYC rent increase laws and the rules and regulations that landlords must follow so you can better understand how much your landlord can increase the price on you.
You’ll also learn some tips and tricks that may help you avoid a rent increase as much as possible. So let’s get started.
Can You Negotiate Rent Increases in NYC?
Yes, you can negotiate rent increases in NYC, but it may be difficult to do so as the market is very competitive, and landlords are often free to raise rents dramatically. However, your landlord will still have to follow proper procedures to raise rent, and if they don't, you can refuse the increase.
No matter if your apartment is rent-stabilized or not, the landlord still has to provide a 30-day notice before increasing rent and cannot charge tenants for renovations that were never done to the buildings.
For rent-stabilized units, the landlord must stay within the law and not increase the rent by more than they are legally allowed to based on percentages from the city of New York that are provided above. These percentages change every year, so tenants need to keep track and make sure their landlords aren’t outside the law on the price increase.
How Much Can a Landlord Raise Your Rent in NYC?
A landlord can raise your rent in NYC as much as they like if they are renting an apartment that isn't subject to rent control or rent stabilization laws. However, you're free to negotiate rent increases with your landlord.
Additionally, if the apartment is subject to rent control laws, the amount a landlord can raise rent will be limited.
Rent stabilization is put in place on specific apartments in NYC to protect against egregious price hikes. Apartments in NYC that are considered to be rent-stabilized are typically found in older buildings. But with how many older apartment buildings and complexes there are in NYC, over half of the city’s apartments are rent-stabilized, and therefore are granted some sort of protection against rent increase.
Rent-stabilized units in NYC have maximum limits on how much rent can be increased between yearly lease renewals. For example, for renewal leases beginning between October 1, 2019, through September 30, 2020, the maximum amount rent could be increased for a 1-year lease was 1.5%; 2-year, 2.5%. But more recently, for renewal leases beginning between October 1, 2020, through September 30, 2021, the maximum increase for a 1-year lease is 0%; 2-year, 0% for the first year, and 1% for the second year.
Maximum rent increase in NYC for non-stabilized tenants
For most newer apartment buildings, the apartments are considered to be non-stabilized. This means that the rent is not stabilized, and the landlord is allowed to raise it however high they choose to between leases. You could sign a lease for a year paying one price, and then when you go to sign a new lease to stay for an extra year, the landlord could do whatever they want. They could even double it if they wanted to.
But luckily, landlords will pretty much never do that because then they’d never be able to keep tenants or find new ones. So although there aren’t any laws to protect against rent increases, it’s commonly seen that landlords in NYC will not raise the rent between leases by more than 5% at the most. This way, they can keep tenants happy and not have to go through the time, struggle, and effort of finding a new tenant to fill a vacated unit.
Can You Avoid Having Your Rent Increased in NYC?
Unfortunately, there are no surefire ways to avoid having your rent raised in NYC. Landlords have bills to pay, and as their prices are increased, some of that trickles down to the tenants to cover the additional expenses. After all, NYC is a wildly popular place to live in the world, and it can be pretty expensive for both landlords and tenants alike. So it is inevitable that at some point — even if you’re in a stabilized unit — that the rent will go up at some point.
Although it is impossible to avoid forever, there are some things that you can do as a tenant to reduce the odds of your rent being increased in NYC. And if your rent does end up being increased, these things can help reduce by how much it goes up.
How to Avoid Rent Increase in NYC
Always Pay Your Rent On Time
The fastest way for a landlord to raise your rent is to constantly have to track you down just to get the payment from you. Paying on time makes their life easier, allows them to plan their own monthly finances, and prevents you from paying any fees. Always try to be on time!
Sign a Longer Lease
While some people don’t want to be locked into an apartment lease for more than one year, the reality is the majority of leases get renewed again and again. So if you’re planning on staying for a couple of years anyway, just sign the longer lease upfront. Every additional year of the lease is an extra year without your rent being increased!
Be the Best Tenant You Can
Being the best tenant you can be is actually pretty simple, and many tenants end up being great tenants without even trying! This starts with being a good neighbor to everyone else in the units around you. Don’t make noise late at night or early in the morning. Clean up after your pets. Don’t let your unit become unsightly from the outside. If your neighbors have issues with your actions, chances are high that it will reverberate up to your landlord. If you’re also able to do basic repairs around the unit, that will help your landlord a lot. If you’re constantly calling them about the smallest of issues (changing a light bulb, swapping air filters, etc.), they may have less incentive to keep your rent low and convince you to stay.
Be Friendly and Courteous to Your Landlord
After all, your landlord will be the one that is raising your rent at the end of your lease. In some big apartment complexes, this isn’t possible, but in smaller ones, the owner may even live on-site themselves. Be friendly, say hi, and always be courteous even if there’s a problem. If you have a good relationship with your landlord, they likely will try to gouge you on the increased price.
What Happens When You Don’t Agree To a Rent Increase?
Since landlords are legally allowed to raise the rent, you cannot just refuse the increased price and expect to remain in the same apartment. But what you can do is try to negotiate the price increase. Landlords don’t have to raise the rent year after year after all. And if you’re consistently a good tenant or have developed some sort of personal relationship with your landlord, you may be able to negotiate the rent increase to a lower price hike.
If you’re unable to negotiate the rent increase to something that you’re willing to pay, then you will need to start looking for a new place to live. You will have no legal backing if you attempt to refuse to pay rent as long as your landlord follows all of the aforementioned NYC rent increase laws. Most of the time the rent increase is kept relatively low so that tenants and landlords can agree on the new pricing. But if not, it’s just a case of finding a new apartment.
Negotiating Rent Increase in NYC Bottom Line
When it comes to negotiating rent increases in NYC, the bottom line is that you have some wiggle room, but unless you live in a rent-stabilized building your landlord is in the driver's seat. Landlords are legally within their rights to raise your rent price when renewing your lease, and can sometimes ask for a significantly higher rent, but you can and should negotiate. If you plan on renewing your lease and your landlord plans on increasing the rent, but doesn't want to negotiate, you don’t have many options. The two main choices you’ll have at that point are to accept the increased rate or start searching for a new apartment.