New York Rent Increase Laws 2025: What Tenants Should Know

In 2025, rent increase laws in New York depend on whether the apartment is rent-stabilized or a free-market unit.

Rent-Stabilized Apartments:

• For rent-stabilized apartments, the Rent Guidelines Board sets annual limits on rent increases.
• For leases signed or renewed between October 1, 2024, and September 30, 2025, the maximum rent increase is 2.75% for a one-year lease and 5.25% for a two-year lease.

Free-Market Apartments:

• For unregulated (free-market) apartments, there is technically no limit to how much a landlord can increase the rent.
• However, landlords must provide advance notice if the rent is increased by 5% or more.
• If a landlord intends to increase rent by 5% or more, they must provide written notice to tenants. The notice period depends on the length of occupancy:
  • 30 days’ notice for less than one year of tenancy.
  • 60 days’ notice for tenancies of one to two years.
  • 90 days’ notice for tenancies longer than two years.

Additional Information

• Good Cause Eviction Law: This law protects tenants from eviction without a legitimate reason and ensures landlords provide valid reasons for substantial rent hikes.
• Rent Control: Rent control applies to buildings built before 1947 and limits the rent a landlord can charge.
• Rent Stabilization: Rent stabilization applies to buildings with six or more units built between 1947 and 1974, setting a fair rent and allowing limited increases. The New York State Division of Housing and Community Renewal oversees these regulations.
• Individual Apartment Improvements (IAI): Landlords can implement rent increases for individual apartment improvements. The new cap for all units is $30,000. The cap may go to $50,000 under two scenarios: 1) after 25 years of prior occupancy, or 2) for units that were registered as vacant in 2022, 2023 and 2024 only, regardless of prior tenancy length.

Sources:

1. https://thenewyorkcitybroker.com/nyc-rent-increase-limits-in-2025/
2. https://www.steadily.com/blog/rent-increase-laws-regulations-new-york-ny
3. https://www.hklaw.com/en/insights/publications/2024/04/changes-to-new-yorks-housing-laws
4. https://www.landlordstudio.com/blog/whats-a-reasonable-rent-increase
5. https://rentguidelinesboard.cityofnewyork.us/2024-25-apartment-loft-order-56/