A tenant signs a vacancy lease when moving into a vacant apartment OR if his/her name is added to a lease signed by existing tenants.

The second lease (and subsequent leases) signed by a rent stabilized tenant are RENEWAL leases. Allowable rent increases for renewal leases are governed by the annual orders of the NYC Rent Guidelines Board. For renewal guidelines, see Apartment & Loft Guidelines.

Prior to June 15, 1997, the increase in rent for vacancy leases was governed by the NYC Rent Guidelines Board and the provisions of the Rent Stabilization Law. A landlord could raise the rent for a vacant unit by the VACANCY ALLOWANCE passed by the Rent Guidelines Board, PLUS the one or two year lease renewal amount. In addition, 1/40th of the cost of any apartment improvements could be added to the monthly rent.

From June 15, 1997 to June 23, 2011, the increase in rent for a vacancy lease had been governed by the terms of the Rent Regulation Reform Act of 1997.

Since June 24, 2011, the increase in rent for a vacancy lease has been governed by the terms of the Rent Act of 2011.

In general, during recent guidelines periods, the landlord can increase the rent by the following amounts:

For vacancy leases commencing between Oct. 1, 2011 and Sept. 30, 2012:

• If a tenant chooses a one-year lease: 16.5% [The vacancy increase for one-year leases is determined each year by taking 20% minus the difference between one- and two-year RENEWAL leases. Under the 2010-2011 rent guidelines period, the difference is 3.5%, so 20% - 3.5% = 16.5%.]
• If a tenant chooses a two-year lease: 20%
• The 2011-12 Vacancy Lease Calculator will be available in the coming weeks.

For vacancy leases commencing between Oct. 1, 2010 and Sept. 30, 2011:

• If a tenant chooses a one-year lease: 17.75% [The vacancy increase for one-year leases is determined each year by taking 20% minus the difference between one- and two-year RENEWAL leases. Under the 2010-2011 rent guidelines period, the difference is 2.25%, so 20% - 2.25% = 17.75%.]
• If a tenant chooses a two-year lease: 20%
• To see how much the rent can be raised for a particular apartment for vacancy leases going into effect during this period, try the 2010-11 RGB Vacancy Lease Calculator. You plug in the numbers and the calculator figures out how much the rent can be raised over the amount paid by the previous tenant.

For vacancy leases commencing between Oct. 1, 2009 and Sept. 30, 2010:

• Where heat is provided or required to be provided to a dwelling unit by an owner from a central or individual system at no charge to the tenant: 20% if the tenant chooses a two-year lease, 17% if the tenant chooses a one-year lease; NOTE: the vacancy increase for one-year leases is determined each year by taking 20% minus the difference between one- and two-year RENEWAL leases. Under the 2009-2010 rent guidelines period, the difference is 3%, so 20% - 3% = 17%. see how much the rent can be raised for a particular apartment for vacancy leases going into effect during this period, try the 2009-10 RGB Vacancy Lease Calculator (for use where heat is provided or required to be provided to a dwelling unit by an owner from a central or individual system at no charge to the tenant). You plug in the numbers and the calculator figures out how much the rent can be raised over the amount paid by the previous tenant.
• Where heat is neither provided nor required to be provided to a dwelling unit by an owner from a central or individual system: 20% if the tenant chooses a two-year lease, 17.5% if the tenant chooses a one-year lease; NOTE: the vacancy increase for one-year leases is determined each year by taking 20% minus the difference between one- and two-year RENEWAL leases. Under the 2009-2010 rent guidelines period, the difference is 2.5%, so 20% - 2.5% = 17.5%. To see how much the rent can be raised for a particular apartment for vacancy leases going into effect during this period, try the 2009-10 RGB Vacancy Lease Calculator (where heat is neither provided nor required to be provided to a dwelling unit by an owner from a central or individual system). You plug in the numbers and the calculator figures out how much the rent can be raised over the amount paid by the previous tenant.

For vacancy leases commencing between Oct. 1, 2008 and Sept. 30, 2009: 20% if the tenant chooses a two-year lease, 16% if the tenant chooses a one-year lease; NOTE: the vacancy increase for one-year leases is determined each year by taking 20% minus the difference between one- and two-year RENEWAL leases. Under the 2008-09 rent guidelines period, the difference is 4%, so 20% - 4% = 16%. To see how much the rent can be raised for a particular apartment for vacancy leases going into effect during this period, try the 2008-09 RGB Vacancy Lease Calculator. You plug in the numbers and the calculator figures out how much the rent can be raised over the amount paid by the previous tenant.

For vacancy leases commencing between Oct. 1, 2007 and Sept. 30, 2008: 20% if the tenant chooses a two-year lease, 17.25% if the tenant chooses a one-year lease; NOTE: the vacancy increase for one-year leases is determined each year by taking 20% minus the difference between one- and two-year RENEWAL leases. Under the 2007-08 rent guidelines period, the difference is 2.75%, so 20% - 2.75% = 17.25%. To see how much the rent can be raised for a particular apartment for vacancy leases going into effect during this period, try the 2007-08 RGB Vacancy Lease Calculator. You plug in the numbers and the calculator figures out how much the rent can be raised over the amount paid by the previous tenant.

For vacancy leases commencing between Oct. 1, 2006 and Sept. 30, 2007: 20% if the tenant chooses a two-year lease, 17% for a one-year lease; NOTE: the vacancy increase for one-year leases is determined each year by taking 20% minus the difference between one- and two-year RENEWAL leases. Under the 2006-07 rent guidelines period, the difference is 3%, so 20% - 3% = 17%. To see how much the rent can be raised for a particular apartment for vacancy leases going into effect during this period, try the 2006-07 RGB Vacancy Lease Calculator. You plug in the numbers and the calculator figures out how much the rent can be raised over the amount paid by the previous tenant.

In addition, the following also applies:

• An additional 0.6% per year if the previous tenant was in the apartment 8 or more years;

• Higher rates for units previously renting for $500 or less;

• For vacancy leases with effective dates on or after June 24, 2011, rent increases permitted under a vacancy may not be taken more than once in any calendar year;

• The permanent increase in the legal regulated rent for the affected housing accommodation shall be 1/40th, in the case of a building with thirty-five or fewer housing accommodations, or 1/60th, in the case of a building with more than 35 housing accommodations where such permanent increase takes effect on or after September 24, 2011, of the total cost incurred by the landlord in providing such modification or increase in dwelling space, services, furniture, furnishings or equipment, including the cost of installation, but excluding finance charges.

Additional information on vacancy leases may also be found in this DHCR fact sheet.

Vacancy calculation steps (for vacancy leases with effective dates between Oct. 1, 2011 and Sept. 30, 2012):
Choose applicable column below to determine vacancy increase
NOTE: These steps exclude any qualifying apartment improvements:

Vacancy calculation examples:

Example 1: The existing legal rent is $900. The last vacancy occurred 4 years ago. The new tenant chooses a one-year lease effective October 1, 2011.

The applicable column in the table above is the first column above, since there has been a vacancy in the last eight years and the rent is over $500. Since the tenant wants a one-year lease the correct percentage increase is 20% MINUS the difference between the two-year lease renewal guideline and the one-year lease renewal guideline or 20% - 3.5% = 16.5%. Thus, the maximum rent which can be charged is 1.165 X $900, or $1,048.50.

Example 2: The existing legal rent is $480. The last vacancy was 11 years ago. The tenant chooses a one-year lease effective February 1, 2012.

The applicable column in the table above is the third column above, since there hasn't been a vacancy in the last eight years and the rent is under $500. First, compute the percentage increase. Since the tenant wants a one-year lease, start with 16.5%. Then, add the vacancy portion (11 X 0.6%, or 6.6%) for a total of 23.1%. Multiply 1.231 X $480, which equals $590.88.

Example 3: The existing legal rent is $950. The last vacancy was 14 years ago. The new tenant chooses a two-year lease effective May 1, 2012.

The applicable column in the table above is the fourth column above, since there hasn't been a vacancy in the last eight years and the rent is over $500. Since it has been 14 years since the last vacancy, you can add 14 X 0.6%, or 8.4% to the increase. Then, calculate the vacancy allowance as in column one: A two-year guideline allowance is 20%. Add the two: 8.4% longevity allowance plus 20% vacancy allowance for a total increase of 28.4%. Thus, the increase is calculated by multiplying $950 x 1.284, totalling the new maximum rent of $1,219.80.

Example 4: The existing legal rent is $1,300. The last vacancy was 2 years ago. The new tenant chooses a one-year lease effective August 1, 2012.

The applicable column in the table above is the first column above, since there has been a vacancy in the last eight years and the rent is over $500. Since the tenant wants a one-year lease the correct percentage increase is 20% MINUS the difference between the two-year lease renewal guideline and the one-year lease renewal guideline or 20% - 3.5% = 16.5%. Thus, the maximum rent which can be charged is 1.165 X $1,300, or $1,514.50.

For further assistance, contact the NYS Division of Housing and Community Renewal (DHCR) or visit their website.

Page Updated July 19, 2011