The law is primarily governed by the:

 

• Rent Stabilization Law of 1969 (RSL)
• Rent Stabilization Code (RSC)
• Housing Stability and Tenant Protection Act of 2019 (HSTPA)
• Administered by the New York State Division of Housing and Community Renewal (DHCR)

 

 

 

 

 

???? Key Legal Obligations for Landlords

 

 

 

1. 

Rent Increases Are Regulated

 

 

• Rent increases for stabilized apartments are set annually by the NYC Rent Guidelines Board (RGB).
• For example, for leases renewed from October 1, 2024 September 30, 2025, the RGB may allow a specific percentage increase, often differing for one- and two-year lease renewals.

 

 

• No rent increases beyond these limits unless:
  
  
• Major Capital Improvements (MCI) or Individual Apartment Improvements (IAI) are approved.
• The landlord receives a hardship increase (rare and heavily scrutinized)
•  

Lease Renewal Rights

 

 

• Tenants in rent-stabilized units have a right to renew their lease for a 1- or 2-year term.
• Landlords must offer renewal between 90 and 150 days before the lease expires.
• Failure to offer timely renewal can result in rent overcharge liability or penalties.

 

 

 

 

 

3. 

Registration Requirements

 

 

• Landlords must register each rent-stabilized unit annually with DHCR, reporting:
  
  
• Legal rent
• Occupancy status
• Any increases from MCIs/IAIs
•  

 

 

Due date: Usually by July 31st of each year. Failure to register can prevent lawful rent increases.

 

 

 

 

4. 

Major Capital Improvements (MCIs)

 

 

• MCIs are building-wide improvements (e.g., new roof, boiler, windows).
• Landlords may apply to DHCR for a rent increase to recover costs.
• Must follow specific DHCR application process and notice to tenants.
• Increases are capped and can be removed once the costs are recovered under new HSTPA rules.

 

 

 

 

 

5. 

Individual Apartment Improvements (IAIs)

 

 

• Landlords used to be able to raise rents for apartment upgrades (e.g., new appliances).
• Since 2019 HSTPA, IAIs are:
  
  
• Limited to $15,000 every 15 years
• Subject to DHCR approval and recordkeeping requirements
• Increase is temporary (30 years) and capped at 1/168th of the cost for 1 tenant or 1/180th for 2 or more tenants.
•  

 

 

 

 

 

6. 

Deregulation (Now Largely Eliminated)

 

 

• High-rent vacancy deregulation and high-income deregulation were abolished by HSTPA.
• Vacancy bonuses (previously up to 20% on turnover) are now prohibited.
• Vacant units remain stabilized unless:
  
  
• They were never rent-stabilized,
• They legally exited the program (e.g., buildings with expired 421-a and proper deregulation notice).
•  

 

 

 

 

 

7. 

Legal Rent and Rent Overcharges

 

 

• Tenants may file rent overcharge complaints with DHCR.
• DHCR or courts will examine four years of rent history, or more if fraud is alleged.
• Landlords must retain records for at least 6 years.
• Overcharges can result in:
  
  
• Triple damages (treble damages) if found willful
• Refunds of illegal rent increases
• Recalculation of the base rent
•  

 

 

 

 

 

8. 

Buyouts and Tenant Harassment

 

 

• Landlords may offer buyouts to tenants to vacate but must not:
  
  
• Harass tenants into leaving
• Make threats, repeat unsolicited offers, or create unlivable conditions
•  
• NYC requires disclosure of buyout rights, and repeated unsolicited offers can trigger harassment claims.

 

 

 

 

 

???? Enforcement and Penalties

 

 

 

Violations May Result In:

 

 

• Fines and penalties by DHCR
• Treble damages for rent overcharges
• Rent freeze or rollback
• Tenant lawsuits
• Denial of future rent increases
• Tenant harassment cases brought by NYC Housing Preservation and Development (HPD)

 

 

 

 

 

???? Best Practices for Landlords

 

 

1. Maintain Complete Rent and Improvement Records
2. Use DHCR-approved lease riders and renewal forms
3. Register annually without fail
4. Understand HSTPA restrictions many older landlord strategies are now prohibited
5. Avoid any action that could be construed as harassment
6. Comply with MCI/IAI rules strictly
7. Respond to DHCR inquiries and tenant complaints timely

 

 

 

 

 

???? Conclusion

 

 

For landlords, navigating rent stabilization in NYC requires strict compliance with a complex and tenant-protective legal framework. Since the 2019 HSTPA reforms, many prior landlord-friendly rules were revoked or restricted, and penalties for violations are steeper. Proactive compliance, clear recordkeeping, and familiarity with DHCR procedures are essential to managing rent-stabilized properties effectively and lawfully.