Find out the difference between rent controlled and rent stabilized New York apartments.
Rent in New York City is widely understood to be expensive. But did you know that there are laws that protect renters such as yourself?
Fact is, more than a million apartments in New York City are subject to laws regarding rent. The city has two forms of regulation, which are rent control and rent stabilization. These exist to prevent New Yorkers from getting priced out of their market.
Rent Controlled Apartments in New York City
Rent controlled apartments in NYC are inside buildings built before 1947. Not only that, it has to have been occupied by the same family since 1971.
These apartments are to be passed down to the next generation but only to a member of the family who has been living in the unit for two years before the current tenant leaves or passes away.
Tenants in rent-controlled apartments are still paying 1970s rental prices -- around $1,000 -- even in the most expensive of neighborhoods in Manhattan, Brooklyn, or Queens.
But the number of rent-controlled apartments are dwindling. Today, if a rent-controlled apartment is vacated, it becomes a rent-stabilized apartment. If there are less than 6 units in the building, it becomes unregulated.
Whereas in the 1950s, there were 2 million rent-controlled apartments in New York City, the number is now at 27,000.
Tenants of rent-controlled apartments are also subject to a 7.5 percent increase each year and are also subject to a “maximum base rent” system. What this means is that there is a maximum amount that landlords are allowed to charge tenants.
How to land a rent-controlled apartment in NYC
To be related to these families is a blessing and a golden ticket to New York City real estate. This is the only way to land a rent-controlled apartment in New York City. So if you have a relative occupying a rent-controlled apartment, and you live with them for at least two years, you can assume the place and take over the tenancy if your relative moves or passes on.
Rent Stabilized Apartments in New York City
Rent stabilized apartments are mostly buildings with more than 6 units built before 1974, priced less than $2000 before 2011 and below $2500 today.
Once it is stabilized by the government, then the landlord is allowed to increase the rent only by a small percent, and according to the Rent Guidelines Board. But when the time comes that the rent has reached $2,500, the landlord can bring it up to market rates.
Landing a rent-stabilized apartment in New York is a possibility, especially since 50 percent of NYC apartments are rent stabilized. These apartments are priced $1,000 cheaper than the average rent in the area.
The biggest impact on the rent in rent-stabilized apartments is how many times it has undergone a renovation or a major repair. Every time a renter moves out, the landlord can increase the rent by 20 percent if the unit has undergone a renovation or major repair.
Lastly, a rent-stabilized apartment can be brought up to market rate if the income of the tenant has exceeded $200,000 for the last two years.
How to land a rent-stabilized apartment in NYC
When rent-stabilized apartments become available, landlords have no trouble filling them, and they don’t even need to advertise them. Competition is fierce. One trick to find them is to search for 1-bedroom or studio in older buildings for under $2,500.
If you’re lucky enough to view a rent-stabilized apartment, it is not up to the landlord to tell you if the unit is in a rent stabilized building, which is why you should find out for yourself. And you should confront the landlord about it.
If you move into one, the landlord should include a rent-stabilization rider in your lease and renewal informing you of your legal rights.
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