| For Renewal Leases Starting Between |
Term of Lease |
1 Year |
2 Year |
Heat provided by Owner |
Heat paid for by Tenant |
Heat provided by Owner |
Heat paid for by Tenant |
| 10/01/07 - 9/30/08 |
3.0% |
3.0% |
5.75% |
5.75% |
| 10/01/08 - 9/30/09 Vacancy Lease Less than 6 years old |
4.5% |
4.0% |
8.5% |
8.0% |
| 10/01/08
- 9/30/09 Vacancy Lease 6 years or older |
Greater of 4.5% or $45 |
Greater of
4.0% or $40 |
Greater of
8.5% or $85 |
Greater of
8.0% or $80 |
| 10/01/09 - 9/30/10 Vacancy Lease Less than 6 years old |
3.0% |
2.5% |
6.0% |
5.0% |
| 10/01/09 - 9/30/10 Vacancy Lease 6 years or older |
Greater of 3.0% or $30 |
Greater of
2.5% or $25 |
Greater of
6.0% or $60 |
Greater of
5.0% or $50 |
| 10/01/10 - 9/30/11 |
2.25% |
2.25% |
4.5% |
4.5% |
| 10/01/11 - 9/30/12 |
3.75% |
3.75% |
7.25% |
7.25% |
Example of how to compute the renewal rent for a lease set to expire on or after September 30, 2011:
Rent as of September 30, 2011 = $800
Tenant A has resided in the subject apartment for seven years, and chooses a two-year renewal lease term that commences 10/1/11. The owner is allowed to charge up to $858.00 per month, calculated as follows:
$800 (previous legal regulated rent) + $58 ($800 x 7.25%) = $858.00
2b. Garage Renewal Leases
Any fixed dollar amounts DO NOT apply to renewal leases for garage or parking spaces for which rent stabilized tenants are charged separately. Under those circumstances, rent increases are limited to the percentages provided above.
3. Major Capital
Improvement ("MCI") rent increases approved by the
DHCR.
Where an owner makes a building-wide improvement, such as the installation of a new boiler, the owner may be entitled to charge each rent stabilized tenant in the building a rent increase based on an MCI. The MCI increase cannot be charged until a DHCR order is issued authorizing the charge and setting the amount. The MCI increase is allocated on a per room basis, and becomes a permanent part of the legal regulated rent for the purpose of applying future rent increases. The DHCR computes the rent increase based upon a seven-year period of amortization of the verifiable costs of the MCI. There is a 6 percent cap on the amount of the increase that may be collected each year. (See Fact Sheet #24, "Major Capital Improvements (MCI) Questions and Answers", for additional information.)
If an apartment is vacant or becomes vacant while an application to the DHCR for a MCI rent increase is pending, the owner must notify any incoming tenant of the basis for the previously filed application, and that the rent will be increased if the MCI application is approved. Failure to include this notice of anticipated rent increase in vacancy leases will result in no MCI increase being approved for this apartment during the term of the vacancy lease. An owner who charges such increases without this notification will be subject to overcharge penalties.
An example of a satisfactory MCI notification clause in a vacancy lease is the following: "An application for a major capital improvement rent increase has been filed under Docket No. ________________ with DHCR based upon the following work __________________. Should DHCR issue an order granting the rent increase, the rent provided for in this lease will be increased accordingly."
4. Individual Apartment
Improvement ("IAI") rent increase.
Where an owner installs a new appliance in or makes an improvement to an apartment, the owner can raise the rent by 1/40th or 1/60th of the costs. In an occupied apartment, the owner must first obtain the written consent of the tenant to the increase, in order to charge and collect it. In a vacant apartment, tenant consent is not required.
Pursuant to the Rent Act of 2011, effective September 24, 2011, in buildings that contain more than 35 apartments, the owner can collect a permanent rent increase equal to 1/60th of the cost of the Individual Apartment Improvement (IAI). In buildings that contain 35 apartments or less, the owner can collect a permanent rent increase equal to 1/40th of the cost of the IAI, as had previously been allowed.
For example, if a new dishwasher is installed in a vacant apartment, in a 100 unit building, and the cost is $900, the rent can be increased by $15 (1/60th of $900). The same installation in a 20 unit building would result in a $22.50 rent increase (1/40th of $900). The increase, if taking place on a vacancy, is added to the legal rent after the application of the statutory vacancy increase, not before. (See Fact Sheet #12, "Rent Adjustments for New Services, Equipment or Improvements to an Apartment, "for additional information.)
Security Deposit
The amount of a security deposit that an owner may collect is generally limited to one month's rent. However, if the tenant originally paid a greater security deposit when the apartment first came under rent stabilization, and has been in continuous occupancy since that date, such deposit may continue in effect until the tenant reaches the age of 65, or receives Social Security disability retirement benefits or SSI benefits. The next rent stabilized tenant to occupy the apartment, however, cannot be required to deposit more than one month's rent as security.
When a lease is renewed at a higher rent, or the rent is lawfully increased during the term of the lease, the owner may collect additional money from the tenant to bring the security deposit up to the new monthly rent. If after the tenant vacates the apartment, he or she disagrees with the owner over the payment of interest or the return of the security deposit, and such disagreement cannot be resolved between them, the tenant may contact the Consumer Frauds and Protection Bureau of the New York State Attorney General's Office or begin a proceeding in a court of competent jurisdiction (usually, Small Claims Court).
Sources:
- New York
City Rent Stabilization Code Sections 2522.4 (a)
- New York City Rent Stabilization
Code Sections 2522.8 (a)
- New York City Rent Stabilization Code Sections 2525.4
Related Material:
- Fact Sheet #12, "Rent Adjustments for New Services, New Equipment
or Improvements to an Apartment"
- Fact Sheet #24, "Major Capital Improvements (MCI) Questions and
Answers"
