New York Real Estate Salesperson ExaminationNew York State Specific Laws and RegulationsMedium
A tenant in a rent-stabilized apartment in New York City has been living in the unit for 10 years. The landlord proposes a 15% rent increase upon lease renewal. Which of the following is true regarding this proposed increase?
- AAny rent increase for a rent-stabilized unit is strictly prohibited by law.
- BThe tenant must accept the increase or vacate the apartment, as it is a landlord's right.
- CThe rent increase is limited by guidelines set by the Rent Guidelines Board.
- DThe landlord can implement the 15% increase, as long as they provide 30 days' notice.
Show answer & explanationAnswer & explanation
Correct answer: C. The rent increase is limited by guidelines set by the Rent Guidelines Board.
Rent increases for rent-stabilized apartments in New York City are not arbitrary. They are strictly regulated by the Rent Guidelines Board (RGB), which sets maximum allowable increases annually for one- and two-year lease renewals.
Why the other options are wrong
- A. Rent increases are allowed for rent-stabilized units, but they are limited by the Rent Guidelines Board, not completely prohibited.
- B. Tenants in rent-stabilized units have protections against excessive rent increases and are not forced to accept any arbitrary increase.
- D. A 15% increase is likely to exceed the legal limit set by the RGB for rent-stabilized units, regardless of notice.
Rent Stabilization
A form of rent regulation in New York City and certain other municipalities that limits the amount a landlord can charge for rent and restricts rent increases to percentages set annually by the Rent Guidelines Board.
- Applies to buildings built before 1974 (with exceptions).
- Protects tenants from excessive rent increases and evictions.
- Rent increases set by the Rent Guidelines Board.
Memory trick: Stabilized rent, RGB's intent, not landlord's content.