In 2025, tenants in New York should be aware of several important aspects regarding rent increases, particularly in the context of rent-stabilized and market-rate apartments. Here’s a comprehensive overview of the rent increase laws and regulations that affect tenants:
Rent Increase Limits for 2025
- Rent-Stabilized Apartments:
- For leases signed or renewed between October 1, 2024, and September 30, 2025, the maximum allowable rent increases are:
- 2.75% for one-year leases.
- 5.25% for two-year leases.
- These limits are set by the New York City Rent Guidelines Board and are designed to provide predictability for tenants in rent-stabilized units.
- For leases signed or renewed between October 1, 2024, and September 30, 2025, the maximum allowable rent increases are:
- Market-Rate Apartments:
- There is technically no limit to how much landlords can increase rent for unregulated (market-rate) apartments. However, the introduction of the Good Cause Eviction Law provides some protections against excessive rent increases.
- Under this law, landlords must adhere to a reasonable increase formula based on inflation plus a margin, capped at 10%. This means that significant increases beyond this threshold may be contested by tenants.
Notice Requirements for Rent Increases
- Landlords must provide written notice of any rent increase based on the length of tenancy:
- 30 days’ notice if the tenant has lived in the apartment for less than one year.
- 60 days’ notice if the tenant has lived there for more than one year but less than two years.
- 90 days’ notice if the tenant has been in residence for two years or more.
Additional Protections Under Recent Laws
- Good Cause Eviction Law:
- Effective from April 20, 2024, this law protects tenants from unreasonable eviction and extreme rent increases in market-rate housing.
- Tenants can challenge rent increases that exceed what is deemed reasonable under this law.
- Major Capital Improvements (MCI) and Individual Apartment Improvements (IAI):
- Landlords can increase rents due to building-wide improvements (MCI) or individual unit renovations (IAI), but these increases are subject to strict regulations and caps.
- Preferential Rents:
- If a tenant is paying a preferential rent (a lower rate than the legally regulated amount), landlords cannot raise it to the legal limit upon lease renewal; increases must align with approved rates by the Rent Guidelines Board.
Conclusion
In summary, tenants in New York should be aware of the following key points regarding rent increases in 2025:
- Rent-stabilized apartments have specific caps on increases: 2.75% for one-year leases and 5.25% for two-year leases.
- Market-rate apartments are subject to fewer restrictions but are protected under the Good Cause Eviction Law, which limits excessive rent increases.
- Landlords must provide adequate notice before implementing any rent increase based on tenancy duration.
- Understanding these regulations can help tenants navigate their rights and responsibilities effectively.
For further assistance or specific questions regarding individual situations, tenants may consider reaching out to local tenant advocacy organizations or legal counsel specializing in landlord-tenant law.
SOURCES
- https://thenewyorkcitybroker.com/nyc-rent-increase-limits-in-2025/
- https://www.hklaw.com/en/insights/publications/2024/04/changes-to-new-yorks-housing-laws
- https://www.avail.co/education/articles/7-important-facts-about-new-york-landlord-and-tenant-laws
