📋 NYC Rent Stabilized Lease Rider
MANDATORY Attachment to All Rent Stabilized Leases
🚨 LEGALLY REQUIRED RIDER
This rider is MANDATORY for ALL rent stabilized leases in NYC:
- DHCR requirement: Must attach to every rent stabilized lease and renewal
- Explains tenant rights: Rent increase limits, renewal rights, eviction protections
- RGB guidelines: Annual rent increase percentages set by Rent Guidelines Board
- Lease invalid without it: Failure to attach rider can void lease provisions
- Tenant must receive copy: Both parties must sign and tenant keeps original
⚠️ What This Rider Must Include
DHCR-approved rider must contain:
- Statement that apartment is rent stabilized
- Legal regulated rent and preferential rent (if applicable)
- RGB rent increase percentages for lease term
- Tenant’s right to renew lease indefinitely
- Grounds for eviction (limited to specific legal reasons)
- Major Capital Improvement (MCI) and Individual Apartment Improvement (IAI) provisions
- DHCR contact information for complaints
📌 Use DHCR Official Form
New York State Division of Housing and Community Renewal (DHCR) provides official rent stabilized rider form (RTP-8). Landlords should:
- Download current version from DHCR website: hcr.ny.gov
- Complete all required fields accurately
- Attach to lease as Rider or Exhibit A
- Both landlord and tenant must sign
- Give tenant signed original copy
📝 Rent Stabilization Information
Tenant has right to choose 1 or 2 year lease term
Property Information
Rent Information
Maximum rent allowed under rent stabilization
Actual rent charged if less than legal regulated rent
💰 Preferential Rent – Critical 2019 Change
Before 2019: Landlord could raise preferential rent to legal rent at renewal
After June 14, 2019: Preferential rent becomes the NEW legal regulated rent. Cannot raise to previous higher legal rent.
Example:
- Legal rent: $2,000/month
- Preferential rent: $1,500/month
- New legal rent: $1,500 (preferential is now the maximum)
- Future increases: Apply RGB percentage to $1,500, not $2,000
Rent Guidelines Board order period (e.g., 2024-2025)
Percentage for 1-year lease renewals
Percentage for 2-year lease renewals
⚠️ Current RGB Rates (2024-2025)
For leases starting October 1, 2024 – September 30, 2025:
- 1-year leases: 2.75% increase
- 2-year leases: 5.25% increase
RGB votes on new rates each June. Always use rates in effect when lease/renewal begins.
Additional Charges (if applicable)
Monthly MCI charge approved by DHCR (if any)
Monthly IAI charge for improvements (if any)
🏗️ MCI & IAI Under 2019 Law
Major Capital Improvements (MCI):
- Building-wide improvements (new roof, boiler, elevator)
- Maximum 2% annual rent increase cap
- Amortized over 12.5 years
- Charge “sunsets” after 30 years (removed from rent)
Individual Apartment Improvements (IAI):
- Only when apartment vacant (not during tenancy)
- $15,000 total cap on improvements
- Collectible at 1/168th per month
Tenant Information
Landlord Information
📚 Complete Guide to NYC Rent Stabilized Rider
Why the Rider Is Mandatory
The rent stabilization rider serves critical purposes:
- Informs tenants of their rights: Many tenants don’t know they’re in stabilized apartments
- Prevents illegal rent increases: Documents legal regulated rent and RGB limits
- Provides DHCR contact: Tenants know where to file complaints
- Creates enforceable record: Both parties acknowledge rent stabilization status
- Required by law: DHCR regulations mandate rider attachment
What Must Be Included in Rider
| Required Element | Purpose | Details |
|---|---|---|
| Rent Stabilization Statement | Confirms apartment is stabilized | “This apartment is subject to rent stabilization laws” |
| Legal Regulated Rent | Maximum lawful rent | Amount registered with DHCR |
| Preferential Rent | Actual rent if lower | Post-2019: becomes new legal rent |
| RGB Percentages | Allowable rent increases | 1-year and 2-year increase rates |
| Renewal Rights | Tenant can renew indefinitely | Must offer 1 or 2 year renewal |
| Eviction Grounds | Limited reasons for eviction | Only 8 legal grounds listed |
| MCI/IAI Provisions | Additional rent charges | Capital/apartment improvements |
| DHCR Contact | Where to file complaints | Phone, address, website |
Understanding RGB Rent Increases
The Rent Guidelines Board (RGB) sets annual rent increase percentages:
📊 How RGB Works
Annual Process:
- Spring: RGB holds public meetings to review data
- June: RGB votes on percentage increases for upcoming year
- October 1 – September 30: RGB order applies to leases starting in this period
Typical Ranges (Historical):
- 1-year leases: 0% to 4% (average 1-3%)
- 2-year leases: 0% to 6% (average 2-5%)
2024-2025 Example:
- 1-year: 2.75%
- 2-year: 5.25%
Legal Regulated Rent vs. Preferential Rent
Critical distinction that changed dramatically in 2019:
⚠️ 2019 Law Changed Everything
Before June 14, 2019:
- Landlord could charge preferential rent (below legal rent)
- At renewal, could raise to full legal regulated rent
- Example: Legal $2,000, preferential $1,500 → renewal could jump to $2,000
After June 14, 2019:
- Preferential rent becomes the NEW legal regulated rent
- CANNOT raise to previous higher legal rent at renewal
- Example: Legal $2,000, preferential $1,500 → new legal rent is $1,500
- Future increases apply RGB percentage to $1,500, not $2,000
This is PERMANENT. Preferential rent permanently lowers legal regulated rent for that unit.
Tenant Rights Explained in Rider
✅ Key Tenant Protections
1. Right to Renew Lease Indefinitely:
- Landlord MUST offer renewal 90-150 days before expiration
- Tenant chooses 1 or 2 year term
- Can renew forever as long as tenant complies with lease
2. Limited Rent Increases:
- Can only raise by RGB percentage at renewal
- No unlimited increases like market-rate apartments
- MCI/IAI increases capped and regulated
3. Eviction Only for Specific Grounds:
- Nonpayment of rent
- Lease violations
- Illegal use of apartment
- Owner occupancy (limited circumstances)
- Substantial renovation requiring vacancy
- NOT using as primary residence
- Holdover after lease expires (only with grounds)
- Nuisance/harassment of other tenants
4. Succession Rights:
- Family members can inherit rent stabilized lease
- Traditional family (spouse, children, parents, siblings)
- Non-traditional family (life partners)
- Requires 2 years co-occupancy (1 year if disabled/over 62)
MCI & IAI Increases Post-2019
Major changes to capital improvement rent increases:
| Type | What It Is | Old Law (Pre-2019) | New Law (Post-2019) |
|---|---|---|---|
| MCI | Building improvements (roof, boiler, windows, etc.) | 1/84th per month, permanent | 1/144th per month (12.5 years), 2% annual cap, sunsets after 30 years |
| IAI | Apartment improvements (kitchen, bathroom) | 1/40th or 1/60th per month, during tenancy or vacancy | 1/168th per month, ONLY when vacant, $15,000 cap |
MCI Details:
- Landlord must apply to DHCR for approval
- DHCR reviews necessity and cost
- If approved, monthly charge added to rent
- Maximum 2% increase per year from MCIs
- Charge automatically removed after 30 years
IAI Details:
- Can only be added when apartment is vacant
- Maximum $15,000 total for all improvements
- Collectible at 1/168th per month (about 0.6% per month)
- Cannot do IAI improvements while tenant occupies apartment
Common Rider Mistakes
❌ Top 10 Rider Errors
- No rider attached: Forgot to include rider with lease. Lease provisions may be unenforceable.
- Using outdated RGB rates: Used last year’s percentages instead of current RGB order. Must use rates in effect when lease begins.
- Wrong legal rent: Listed preferential rent as legal rent. Must show both if different.
- Pre-2019 preferential language: Said can raise to legal rent at renewal. Illegal after 2019 – preferential IS new legal rent.
- Not signed by tenant: Provided rider but didn’t get tenant signature. Need signed acknowledgment.
- No tenant copy: Landlord kept only copy. Tenant must receive signed original.
- Incomplete MCI/IAI disclosure: Added charge but didn’t explain amount or DHCR approval. Must detail all charges.
- Wrong DHCR contact info: Listed outdated phone number or address. Must have current contact information.
- Missing renewal rights: Didn’t explain tenant can renew indefinitely. Critical tenant right.
- Homemade rider: Created own version instead of using DHCR form. Should use official RTP-8 form.
DHCR Registration Requirement
Related requirement – landlords must register stabilized apartments annually:
- Deadline: April 1 each year
- Register: Legal regulated rent and unit details
- Penalty for failure: Cannot raise rent until registered
- Late registration: Tenant may be entitled to refund of overcharges
Best Practices
✅ Rider Compliance Checklist
- Download current RTP-8: Get latest DHCR form from hcr.ny.gov
- Complete all fields: Legal rent, preferential rent, RGB rates, MCI/IAI charges
- Use current RGB rates: Check which RGB order applies to lease start date
- Attach to lease: Rider should be Exhibit A or clearly attached document
- Both parties sign: Landlord and all tenants must sign rider
- Give tenant original: Tenant keeps signed original, landlord keeps copy
- Keep in records: Maintain copy with lease documents
- Annual DHCR registration: Register rent by April 1 each year
- Renewal riders: Attach updated rider to all renewal leases
⚖️ Legal Disclaimer
This form is provided for informational purposes only and does not constitute legal advice. NYC rent stabilization rider is legally required by DHCR for all rent stabilized leases. Failure to attach proper rider can result in lease provisions being unenforceable and DHCR violations.
Use official DHCR Form RTP-8 available at hcr.ny.gov. While this tool helps you understand rider requirements, landlords should download and use the current official DHCR form to ensure compliance with all regulatory language.
RGB rates change annually. Always verify current Rent Guidelines Board percentages before completing rider. Using outdated rates is violation and tenant can challenge increases. Check DHCR website for current RGB order in effect.
Preferential rent rules changed in 2019. If charging rent below legal regulated rent, that preferential rent becomes the NEW legal regulated rent permanently. Cannot raise to previous higher legal rent at renewal.
For rent stabilized properties, we strongly recommend consulting a NYC landlord-tenant attorney or property manager experienced with DHCR regulations. Rent stabilization law is complex and constantly evolving. Professional guidance prevents costly errors and DHCR violations.
