🗽 NYC Rent-Stabilized Rent Increase Notice

NYC Rent-Stabilized Rent Increase — Complete Guide

New York City’s Rent Stabilization Law (RSL) governs approximately 1 million NYC apartments. If your unit is rent-stabilized, raising the rent isn’t a matter of writing whatever number you want in the renewal letter — it’s a legally regulated process with specific rules, timelines, forms, and consequences for getting it wrong.

This notice is designed as a companion summary to the mandatory DHCR Renewal Lease Form (RTP-8). The RTP-8 is the official form — this notice doesn’t replace it, it clarifies the increase numbers for the tenant’s records. Always send both together.

Who This Applies To

• Rent-stabilized tenants — buildings with 6+ units, built before 1974, and not otherwise exempt. Also apartments brought into stabilization through 421-a or other tax programs.
• Rent-controlled tenants — very small population (under 1% of NYC housing). Different rules apply — MBR (Maximum Base Rent) system, not RGB.
• Free-market (unregulated) tenants — RSL doesn’t apply. See our general NY rent increase guide for those rules.

The Renewal Window and Required Timeline

1. 90 to 150 days before lease expires — owner must offer renewal using RTP-8 form. Send too early or too late, and the tenant’s rights shift.
2. Tenant has 60 days after receiving the RTP-8 to accept and return it, choosing a 1-year or 2-year term.
3. If tenant doesn’t return the form, the owner may proceed with an eviction for failure to renew — but only after all timing rules are followed.
4. If the owner doesn’t offer renewal on time, the tenant remains in possession under the existing terms indefinitely (month-to-month at the stabilized rent).

HSTPA 2019 — What Changed

The Housing Stability and Tenant Protection Act of 2019 made sweeping changes to RSL. Key points affecting rent increases:

• Preferential rent protection. If a tenant is paying a preferential rent (below legal rent), the preferential rent now governs renewals for the duration of the tenancy. Landlords can no longer “snap back” to legal rent at renewal, with narrow exceptions.
• Vacancy bonus eliminated. The 20% vacancy bonus on unit turnover is gone. Rent on re-rental is generally limited to the last legal rent plus any RGB guidelines increase.
• IAIs and MCIs limited. Individual Apartment Improvements and Major Capital Improvements are subject to new caps and amortization rules.
• Four-year overcharge lookback extended. Tenants can now look back further to challenge overcharges in some cases.
• Treble damages for willful overcharges. Accidental overcharges are repaid; willful ones get tripled.

How to Calculate the Increase

1. Identify the applicable RGB Order. The order in effect when the renewal lease starts. Check the RGB website for current percentages.
2. Apply the percentage to the base rent. For most tenancies, base rent is the lower of (legal rent) or (preferential rent being paid). HSTPA 2019 changed this — confirm with DHCR or an attorney if unsure.
3. Add any lawful surcharges. MCI passalongs (if approved), IAI increases (if properly filed), or other DHCR-approved adjustments.
4. Round per DHCR convention. Most landlords round to the nearest dollar; the tenant’s copy shows exact decimals.

Delivering the Notice Correctly

Service matters. DHCR recognizes:

• Personal delivery — hand to tenant, obtain signed acknowledgment
• Certified mail — with return receipt, as secondary method
• Mailing by ordinary mail with certificate of mailing — acceptable in many cases

Always keep proof of service. Improper service can void the renewal offer and leave the owner unable to enforce the increase or remove the tenant.

Frequently Asked Questions

What’s the current RGB percentage?

RGB percentages change annually. Check the NYC Rent Guidelines Board website for the latest order. Percentages differ for 1-year and 2-year terms, and apply to leases starting October 1 of one year through September 30 of the next.

Can I charge the vacancy bonus on renewal?

No. HSTPA 2019 eliminated the vacancy bonus entirely. Even on new tenancies, the rent is generally limited to last legal rent plus applicable RGB increases.

What if the tenant’s paying a preferential rent?

Under HSTPA 2019, preferential rent is preserved throughout the tenancy for most tenants. At renewal, apply the RGB percentage to the preferential rent, not the legal rent. Exceptions exist for pre-HSTPA lease renewals — consult DHCR or counsel.

What if I missed the 90–150 day window?

If you send the renewal too late, the tenant’s rights extend. The tenant is entitled to a renewal based on the same terms. If you send it too early, it may be rejected. Redo it in the proper window.

Does this notice replace the RTP-8?

No. The RTP-8 is the legally required renewal offer. This companion notice is an optional summary for tenant clarity — always send the RTP-8 as the primary document.

What if the tenant refuses to sign the RTP-8?

If the tenant doesn’t return the RTP-8 within 60 days of receiving it, the owner has specific remedies — including potential non-renewal of the lease. Consult a landlord-tenant attorney before pursuing this path, as the procedures are strict.

Related NYC Forms & Resources

• NYC Lease Renewal Notice — companion to RTP-8
• NYC Rental Application — Local Law 22 compliant
• NYC Residential Lease — for new tenancies
• All NYC Forms — NYC-specific library