8 FAQs about rent-regulated apartments in NYC.

In NYC you may hear people talking about rent control. It’s a blanket term to describe some sort of policy that restricts rent increases on housing. But in NYC it means something a little different. New York City has both rent-controlled and rent-stabilized apartments (together they are referred to as rent-regulated apartments). The whole subject of rent-regulation can be a bit confusing, so here are 8 FAQs we get about this topic!

1. What is a rent-controlled apartment?

Rent control is a policy that restricts increases on apartments in buildings built before 1947. Rent control in NYC is VERY rare and there are only about 16,000 rent-controlled units left in the city. To qualify for rent control, a tenant must have been continuously living in an apartment since July 1, 1971, or be a qualifying family member who succeeded the apartment (more on this later). This is why most rent-controlled tenants are elderly – they’ve been living in the same space since the 70s! Their rent is from the 70s too – sometimes just a couple of hundred dollars.

When a rent-controlled apartment becomes vacant, it automatically becomes “rent stabilized”, except in buildings with fewer than six units, where it is usually decontrolled. This is why the number of rent-controlled apartments is so few – when the tenant passes away or vacates, the unit falls into stabilization status. Unlike rent-stabilized apartments, rent-controlled tenants don’t have a lease. They don’t need one. They are a permanent tenant of that space – the landlord can never ask them to leave.

2. What is a rent-stabilized apartment?

It generally applies to buildings of six or more units built before 1974 that are not subject to rent control. Over the years, some of the buildings may have become destabilized for a variety of reasons. Some buildings have a mix of both rent-stabilized and market rate apartments. But many new construction buildings in NYC also have rent-stabilized apartments in them. Developers receive tax abatements in exchange for making their new buildings stabilized. If you have a stabilized apartment, your rent can only go up a certain amount every year and you are entitled to a lease renewal. Your landlord HAS to renew your lease every year. The rent increase is set by the Rent Guidelines Board – they vote on the increase every June. 

3. How can I find a rent-stabilized apartment?

There are nearly 1 million rent-stabilized apartments in NYC – almost 50% of all the housing stock. That means it’s not impossible to get your hands on a rent-stabilized apartment. You can browse rent-stabilized listings on openigloo. You do not need to qualify to get a stabilized apartment. Anyone can rent one. A common misconception is that you can only find stabilized units in old or run down buildings. That’s not true. Many new units on the market are stabilized and some of them even have high rents. Rent-stabilization doesn’t mean cheap.

4. Can a landlord destabilize or deregulate apartments?

Prior to a bunch of law changes in 2019, there were some pathways landlords could use to destabilize a unit. They could do renovations to deregulate a unit or if the apartment’s rent hit a certain threshold, it would automatically become destabilized. All of that has changed. Unless a tax abatement is expiring (usually on new development buildings), it’s nearly impossible for a unit to fall out of stabilization.

5. How can I find out if my apartment is a rent-stabilized unit?

The only way to confirm 100% if your unit is regulated is to request your rental history from DHCR – the state agency in charge of rent-regulation. DHCR will mail you a physical copy of your rent history to your address – only the existing tenant can request this. In the history you’ll be able to see if your unit is stabilized and what the legal rent is. Make sure what you’re paying matches with what’s on the record. There are cases where tenants learn about overcharges. This is illegal and landlords are required to pay treble damages if they are caught doing this. Know the status of your apartment and request your rental history!

6. What is a preferential rent? Is this normal?

Preferential rent is very normal and is when a landlord charges less than the legal rent. Let’s say the legal rent on the apartment is $2,000 but they are only charging you $1,800 – that is a preferential rent, a better price! Landlords must register this preferential rent on the history and your increases should be based on the preferential rent not the legal rent. This wasn’t the case before the 2019 law change. Landlords could increase your rent up to the legal rent amount even if they gave you a preferential rate the year before.

7. I got my rent history but I’m having a hard time understanding it? What does all this mean?

Your rent history may look something like this:

It will have the filing date (when the landlord registered the unit), the legal rent (what the landlord can charge), and the preferential rent (if applicable). On the report will be the name of the tenant as well. Sometimes the history may show EXEMPT – REG NOT REQUIRED; this means the unit fell out of regulation and the landlord no longer has to register the unit with DHCR. You may also see REG – NOT FOUND. This could be that the landlord is late to register the unit for the year. Just because the registration wasn’t found doesn’t mean the apartment isn’t regulated. If you think your unit was unfairly deregulated you can consult an attorney.

8. Can you inherit a rent-stabilized or rent-controlled apartment?

Yes you can. See our Tiktok explainer on this! Regulated apartments have succession rights. This means that an apartment can be passed down only if the person inheriting the apartment has also been living there the previous 2 years. The requirement is only 1 year for persons over 62 or for people with disabilities. So for example, your grandparent (or great-grandparent) has a rent controlled or rent-stabilized apartment – as long as you’re living there for 2 years before they vacate, you can claim your succession rights. But if it’s a low rent apartment especially, be prepared to prove your residency (the landlord and likely lawyers will verify). Succession rights on rent-stabilized apartments have become less relevant since 2019 as a unit can no longer fall out of stabilization at vacancy. The landlord cannot increase the rent or destabilize the unit once someone vacates.

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Is your apartment a rent-stabilized unit? Does your landlord respect rent-regulation laws? Share an anonymous review on openigloo about your building, and help the next renter with their search.