Landlords in rent-stabilized buildings must renew tenant leases if the tenant wants to stay and has not broken any lease terms.
New York City began regulating rent costs in 1947. The original rent-control system has been largely replaced by a rent-stabilization system, which allows landlords slightly more flexibility when setting rents, without denying tenants other important rights. New York City renters should be aware that landlords may raise the rent once a year and may also raise it mid-lease, under certain conditions.
Age of Eligible Buildings
Rent control is an older rent-cost-regulation system, according to the New York City Rent Housing Board. Most rent-controlled buildings were built prior to 1947, when there was a housing shortage, due to the number of soldiers returning home after World War II ended. Conversely, rent-stabilized buildings were built between 1947 and 1974.
Tenant Entitlements
Both rent stabilization and rent control entitle tenants to required repairs and services and prohibits landlords from engaging in frivolous eviction--evicting tenants simply because the landlord doesn't like the tenant or wants to rent to a newer tenant for a higher price. If a landlord violates a tenant's rights in a rent-stabilized building, the tenant has the right to file a grievance with the Division of Housing and Community Renewal (DHCR), which can order the landlord to lower the tenant's rent, make repairs, or pay civil penalties. Tenants in rent-stabilized apartments also have the right to renew their leases, while landlords may refuse to renew a tenant's lease in a rent-controlled building.
Limitations on Rent Increases
Landlords who own rent-controlled buildings may not charge more than the maximum base rate (MBR) for rent. This rate is set by the New York Rent Guidelines Board and is re-evaluated every two years. If a landlord charges less than the MBR, once a year he may raise the rent by 7.5 percent until he reaches the MBR. Rent stabilization regulates the amount rent may increase each year rather than the amount of rent. Landlords across New York City may raise rent by this amount each October. In addition, landlords may raise rent in the middle of a lease term if the tenant agrees in writing to the rent increase, the landlord makes substantial improvements to the building, or the DHCR approves the rent increase.
