The Rent Guidelines Board, which regulates rent stabilized apartments across New York City, is set to increase rents for residents in regulated units by 3.25%, or in some cases, up to 5%. This increase is set to be the largest yearly increase in rents for regulated apartments in years. In total, around two million New Yorkers will be affected by this increase in rents, potentially straining their finances.
What Are Rent Stabilized Apartments?
Rent stabilized apartments, also known as rent controlled apartments, are apartments found across New York City (as well as some other municipalities) whose rents are tightly controlled by the local government. Instead of landlords being able to raise rents whenever they want, they can only raise rents with the approval of the Rent Guidelines Board or another similar authority. This generally means that rent stabilized apartments tend to be much more affordable than other apartments, making them highly sought after.
Why Are Rents Going Up?
The Rent Guidelines Board approved an increase of rents by 3.25% for one-year leases, and 5% for two-year leases, in its most recent vote. The vote comes as real estate prices have reached their highest point since 2008, with landlords eager to begin raising their rents to match. In addition, higher inflation has driven prices up for everyone, and landlords asked for a rent hike on rent stabilized apartments to help cover their costs.
What Do People Think of This Change?
Tenants currently living in rent stabilized apartments are not happy about the increase, but neither are landlords. Tenant advocates were asking the Board to either freeze rents or even roll them back, citing the increased economic pressure that tenants are facing in the current market. Landlords, meanwhile, were hoping for even larger rent hikes, both to take advantage of the high prices in the real estate market, and to cover increasing costs resulting from inflation. The Board, in the end, chose to disappoint both sides by taking a middle-of-the-road approach.
How Could This Affect Renters?
If you currently live in a rent stabilized unit, you could see your rents increase significantly over the next year or two. Landlords may also increase pressure on existing tenants to leave their apartments, which can allow them to raise their rent further. However, as a resident in a regulated apartment, you have certain legal rights that you can exercise if you are being illegally pressured into leaving your apartment. That is why you should contact a lawyer with experience handling landlord-tenant issues, who can advise you on your rights and help you explore your legal options.
If you are in a dispute with your landlord and want to know more about protecting yourself, do not wait until it is too late. You should seek advice from an attorney experienced in handling landlord-tenant disputes, who can advise you on your rights and help you avoid the risk of eviction. Contact the skilled landlord-tenant attorneys at Hobson-Williams, P.C. Contact us online, toll-free (866) 825-1529 or (718) 210-4744 to discuss your rights and the solutions available to you.
