Although the city has many renting options available in the market, New York is deemed as a costly city for individuals who are looking for affordable accommodation. The good thing is that there are laws set in place to regulate rental fees for the protection of renters. Today, about one million apartments are said to be subjected to this protection. One type of protection commonly applied is rent stabilization, but even rent-control still exists up to this day.
In the following section, we’ll cover the differences between rent-controlled and rent-stabilized units. Here’s what you need to know about the rent regulation in New York City.
Rent control vs. rent stabilization
Let’s start by taking a look at the difference between rent control and rent stabilization, as follows:
Rent control: This applies to tenants who have been continuously living in their apartments (built before 1947) since July 1st of 1971. In a nutshell, this control serves to guarantee tenants with minor price hikes over time. This means that tenants will continue to pay 1970s rents in neighborhoods, having exploded in real estate value over the years. Know, however, that when a rent-controlled apartment becomes vacant, the regulation no longer applies.
Rent stabilization: This is a popular way for New Yorkers to secure below-market rent these days. In fact, statistics show that about 50 percent of the city’s units are stabilized while only one percent of New York rental units are rent-controlled. The rent stabilization generally applies to apartments in buildings with six or more units constructed before 1974. This regulation allows landlords to increase the rent by a percentage determined by the Rent Guidelines Board, which means the lease does not depend on income level, apartment size, number of headcounts, or other factors.
How to get a rent-controlled or rent-stabilized apartment
Now, let’s get into how one can get into either a rent-controlled or rent-stabilized unit. Here’s what you should know:
Rent control: Know that when a tenant in a rent-controlled apartment dies or moves out, family members occupying the same space as well have the right to take over the tenancy under certain conditions. Roommates, however, who aren’t family-related members with the prime tenant do not have succession rights. The same is true with family members who aren’t living in the unit.
Rent stabilization: If one is moving into a rent-stabilized apartment, a landlord should include a rent-stabilization rider in all new leases and renewal, informing tenants of their legal rights. However, many landlords fail to provide these details to prospective renters. As a result, they end up charging renters more than they’re legally liable. That said, individuals should research on rent stabilization before signing a lease.
At this point, both landlords and renters should get acquainted with rules and regulations for apartments in New York to avoid any legal issues in the long run. It’s vital as well to consider what rent control and rent stabilization entail and how they work for you, whether you’re a landlord or a renter.
To that end, consider the valuable information explained above. If you have rental properties and want to stay compliant and avoid legal issues in the future. Consult with our New York property management company today! We’re happy to help.