Here’s what tenants in New York City should know about rent increase laws for 2025:
Rent-Stabilized Apartments:
- For a one-year lease commencing between October 1, 2024, and September 30, 2025, the rent increase is capped at 2.75%.
- For a two-year lease commencing between October 1, 2024, and September 30, 2025, the rent increase is capped at 5.25%.
- These rates are determined annually by the NYC Rent Guidelines Board.
Rent-Controlled Apartments:
- Rent increases are subject to the Maximum Base Rent (MBR) protocol employed by the Division of Housing and Community Renewal (DHCR) and are modified every two years.
- Landlords typically raise rent on these properties based on the lower of the average of the five most recent Rent Guidelines Board annual rent increases or 7.5%.
- The DHCR is responsible for establishing a maximum rent price, and increase limits depend on the average of the last five annual rent increases from the Rent Stabilized Guidelines Board.
Free-Market or Unregulated Units:
- There is technically no limit to how much a landlord can increase rent in an unregulated housing unit.
- However, the “Good Cause Eviction Law” deems any increase unreasonable if it is above 5% plus the inflation index or 10%, whichever is lower.
- Landlords must wait for the lease to expire before raising the rent based on current market conditions and demand.
- If the rent increase is more than 5%, landlords must provide written notice to tenants.
Rent Increase Notices:
- For unregulated units, landlords must provide written notice if they intend to increase rent by 5% or more.
- The notice period depends on the tenant’s length of occupancy:
- Less than one year: 30 days’ advance written notice
- More than one year but less than two years: 60 days’ advance written notice
- Two years or more: 90 days’ advance written notice
Important Points to Consider:
- Rent caps only apply to rent-stabilized apartments in New York City.
- The Housing Stability and Tenant Protection Act of 2019 contains specific guidelines on issuing notices of rent increases or lease non-renewals.
- With the tenant’s consent, a NYC landlord may raise the rent of a month-to-month tenant
- There are exceptions to rental increases for both rent-controlled and rent-stabilized buildings, including Individual Apartment Improvements, Major Capital Improvements, Senior Citizen Rent Increase Exemption, Preferential Rent, and Disability Rent Increase Exemption.
- The new law limits how much a landlord can increase your rent because of an Individual Apartment Improvement (IAI). For buildings with 35 or fewer apartments, the most a landlord can raise the monthly rent due to an IAI is $89.29. In buildings with more than 35 units, the most a landlord can raise the monthly rent due to an IAI is also limited.
Source
[1] https://thenewyorkcitybroker.com/nyc-rent-increase-limits-in-2025/
[2] https://www.doorloop.com/laws/new-york-rent-control-laws
[3] https://rentguidelinesboard.cityofnewyork.us/2024-25-apartment-loft-order-56/
[4] https://www.citylandnyc.org/rent-guidelines-board-announces-proposed-increases-for-2024-2025/
[5] https://rentpost.com/resources/article/raise-rent-laws-in-nyc/
