RENT STABILIZED VS RENT CONTROLLED

Many new developments in which received tax abatements such as 421-As have a select number of units in which are rent stabilized. Below is the difference between rent stabilization and rent control.

Rent Stabilization

• generally applies to apartments in buildings with six or more units constructed before 1974 and apartments removed from rent control. It also covers buildings that receive J-51, 421-a and 421-g tax benefits

• provides protections to tenants besides limitations on the amount of rent increases. Tenants are entitled to receive required services, to have their leases renewed, and may not be evicted except on grounds allowed by law. Leases may be renewed for a term of one or two years, at the tenant's choice.

• Once in a stabilized apartment, your landlord can only increase your rent by a percentage determined by the Rent Guidelines Board every year. Every June, the Rent Guidelines Boards votes on new rates for rent increases in stabilized apartments. These guideline rates are set once a year and are effective for renewal leases beginning on or after October 1st of each year.

Rent Control

• is the older of the two systems of rent regulation and covers only those tenants who live in buildings built before February 1, 1947 and who have lived in their apartments since July 1, 1971 or a person who succeeded an apartment who was in since then.

• limits the rent an owner may charge for an apartment and restricts the right of any owner to evict tenants. Tenants are also entitled to receive essential services. 

• Under the new rent laws, the rent increase will now be an average of the last 5 Rent Guidelines Board 1-year rent increases or 7.5%, whichever is less. Landlords will still need to apply for an increase.