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Leases
can be divided into two main categories: Vacancy leases and renewal leases.
A
tenant signs a vacancy lease when moving into a vacant rent stabilized apartment.
[The
second (and any subsequent) lease signed by a rent stabilized tenant is called a renewal lease. Allowable rent increases for renewal leases are governed
by the annual orders of the NYC Rent Guidelines Board. For renewal guidelines,
see the Apartment & Loft
Guidelines page.]
Since
June 15, 1997, the increase in rent for a vacancy lease had been
governed by the terms of the Rent Regulation
Reform Act of 1997. Since its enactment, the vacancy increase has not been set by the NYC Rent Guidelines Board. In addition, since June 24, 2011, vacancy lease rents have also 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, 2012 and Sept. 30, 2013:
- If a tenant chooses a one-year lease: 18% [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 2012-2013 rent guidelines period, the difference is 2%, so 20% - 2% = 18%.]
- 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 2012-13
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 earlier vacancy leases, see bottom of page.
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, 2012 and Sept. 30, 2013):
Choose applicable column below to determine vacancy increase
NOTE: These steps exclude any qualifying
apartment improvements:
If:
Previous Vacancy
occurred in last
8 years
And:
Most recent legal rent
was over $500
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If:
Previous Vacancy
occurred in last
8 years
And:
Most recent legal rent
was $500 or less
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If:
Previous Vacancy
occurred over
8 years ago
And:
Most recent legal rent
was $500 or less
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If:
Previous Vacancy
occurred over
8 years ago
And:
Most recent legal rent
was over $500
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FOR A TWO-YEAR VACANCY LEASE:
(1) If
the vacancy lease is for a term of two years, the legal rent
can be raised 20%.
FOR A ONE-YEAR VACANCY LEASE:
If
the vacancy lease is for a term of one year, the legal rent can be
raised 20% minus the difference between the RGB's one- and two-year
lease renewals: If the vacancy lease commences between October
1, 2012 and September 30, 2013, for a one-year lease, the maximum vacancy
increase is 18%.
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If the legal
regulated rent is less than $300,
the total increase is calculated in
the column to the left plus $100
per month.
If the legal
regulated rent is at least $300 and
no more than $500, the total increase
is as outlined in
the column to the left OR $100, whichever
is greater |
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Multiply
the number of years since the last vacancy (or since the unit was first
stabilized) times 0.6%. Add this figure to the figure calculated in
the far left column to determine the percentage increase.
THEN for
units under $300 ADD $100.
THEN for
units between $300 and $500 determine if this increase is at
least $100. If NOT, the increase is $100. |
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Multiply
the number of years since the last vacancy (or since the unit was first
stabilized) times 0.6%. Add this figure to the figure calculated in
the far left column to determine the percentage increase.
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Vacancy
calculation examples (for vacancy leases with effective dates between Oct. 1, 2012 and Sept. 30, 2013):
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, 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% - 2% =
18%. Thus, the maximum rent which can be charged is 1.18 X $900, or $1062.
Example 2:
The existing legal rent is $480. The last vacancy was 11 years ago. The
tenant chooses a one-year lease effective March 1, 2013.
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 18%. Then, add the vacancy portion (11 X 0.6%,
or 6.6%) for a total of 24.6%. Multiply 1.246 X $480, which equals
$598.08.
Example 3:
The existing legal rent is $950. The last vacancy was 14 years ago. The
new tenant chooses a two-year lease effective June 1, 2013.
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, totaling 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 September 1, 2013.
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% - 2% =
18%. Thus, the maximum rent which can be charged is 1.18 X $1,300, or $1,534.
For further assistance, contact the NYS Division of Housing and Community Renewal (DHCR) or visit their website.
Earlier vacancy lease calculators:
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 2011-2012 rent guidelines period, the difference is 3.5%, so 20% - 3.5% = 16.5%.]
- 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 2011-12
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, 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.
For further assistance, contact the NYS Division of Housing and Community Renewal (DHCR) or visit their website.
Page Updated
January 29, 2013
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