Get #16 Collecting Overcharges In

Overview. Owners of rent stabilized apartments may legally increase the rent in several ways, including lease guideline increases, Major Capital Improvement (MCI), and Individual Apartment Improvement (IAI) increases.

For a two-year lease commencing on or after October 1, 2023 and on or before September 30, 2024: For the first year of the lease, 2.75%; and. For the second year of the lease, 3.20% of the amount lawfully charged in the first year, excluding any increases other than the first-year guideline increase.

For a two-year lease beginning on or after October 1, 2023, and on or before September 30, 2024: For the first year of the lease: 2.75% For the second year of the lease: 3.20% of the amount lawfully charged in the first year, excluding any increases other than the first-year guideline increase.

About 250,000 households in New York have a "preferential" rent, meaning that they are paying less than the landlord is legally allowed to charge.

The penalty for a rent overcharge is the amount an owner collected above the legal regulated rent, plus either accrued interest or treble damages, as appropriate.

In particular, because of the tax benefit, rental apartments are often subject to rent stabilization, usually also only for a certain time period. This section of the law is enacted for a few years at a time and then expires, unless renewed.

Specifically, each year the NYC Rent Guideline Board sets a cap on how much a landlord may increase your rent annually. In June of 2023, the board set a 2.75% increase for one-year lease agreements and a 3.20% increase for a two-year lease agreement.

Using RGB survey data from 2021, we calculated that the average stabilized rent in 2023 citywide was $1,555, with average expenses, excluding the cost of debt, rising to 77% of rent in some cases, which is the highest in 14 years.