Rent Stabilization: Legal Protections and Rent Limits in NYC

1. What Rent Stabilization Regulates in New York

Rent stabilization is a regulatory system designed to prevent "rent gouging" in markets where the vacancy rate is critically low. It applies to approximately one million apartments across New York City and certain municipalities in Nassau, Westchester, and Rockland counties.

Covered Apartments and Buildings

Generally, rent stabilization covers buildings with six or more units constructed between February 1, 1947, and December 31, 1973. It also includes older buildings (pre-1947) where a tenant moved in after the apartment was decontrolled. Furthermore, buildings receiving specific tax benefits, such as 421-a or J-51, are mandated into the stabilization system regardless of their construction date.

Rent Limits and Lease Renewal Rules

Under this law, owners cannot set rents based on "market" whims. Instead, they are restricted to increases set annually by the Rent Guidelines Board (RGB). Courts apply rent stabilization law to enforce statutory rent limits and protect stabilized tenants from unlawful increases. These limits apply not just to the monthly rent but to the very terms of the lease, which must be offered on the same terms and conditions as the original agreement.

2. Tenant Rights under Rent Stabilization

The primary value of a stabilized tenancy is the "right to remain," a protection that effectively creates a life-estate interest in the property.

Lease Renewal and Rent Increase Limits

A stabilized tenant has a statutory right to a lease renewal for a term of one or more years, at the tenant's option. The landlord can only refuse renewal under extremely narrow circumstances, such as "owner occupancy" (where the owner seeks the unit for personal use) or if the tenant is not using the unit as their primary residence.

Protection against Deregulation

Prior to the HSTPA of 2019, landlords could use "high-rent" or "high-income" triggers to remove apartments from the stabilization system. In the current 2026 legal landscape, these deregulation "off-ramps" have been largely abolished. An apartment that is stabilized today generally stays stabilized, regardless of how high the rent climbs or how much the tenant earns.

3. When Rent Stabilization Violations Occur

Violations are often subtle, buried in complex rent ledgers or omitted from mandatory state filings.

Overcharges and Unlawful Rent Increases

A rent overcharge occurs when a landlord collects more than the "legal regulated rent." This might happen through:

Illegal Individual Apartment Improvements (IAIs): Claiming renovations that were never performed or were over-billed to justify a rent hike.
Failure to File: Charging a rent that has not been properly registered with the DHCR.
MCI Fraud: Improperly passing the costs of Major Capital Improvements (like a new roof or boiler) to tenants without proper agency certification.

Improper Deregulation Claims

Some landlords continue to treat apartments as "free market" despite their legal status as stabilized. This often occurs in buildings where the owner claims a "substantial rehabilitation" occurred, or where they argue the apartment was lawfully deregulated years ago. SJKP LLP performs a surgical review of the "look-back period" to challenge these claims and restore the apartment to its protected status.

4. Landlord Obligations under Rent Stabilization Law

In rent stabilization disputes, courts and agencies examine registration records, rent histories, and statutory compliance. Owners are held to a standard of strict liability regarding their administrative duties.

Registration and Disclosure Duties

Landlords must register every stabilized unit annually with the DHCR. They are also required to provide every new tenant with a "Rent Stabilization Lease Rider," which details the prior rent, the reason for any increase, and the tenant’s right to challenge the rent. A failure to provide this rider or to register the unit can result in a "rent freeze," preventing the owner from collecting any increases until the default is cured.

Compliance with Rent Guidelines

Landlords must adhere to the percentages dictated by the RGB for both one- and two-year renewals. If a landlord attempts to charge a 5% increase when the board authorized only 3%, the entire increase may be deemed an unlawful rent increase, exposing the owner to significant financial penalties.

5. Step-by-Step Procedure: Resolving Stabilization Disputes

Whether through an administrative body or the court system, resolving a stabilization conflict follows this 6-line trajectory:Forensic Audit: Obtain the certified "Rent Registration History" from the DHCR to identify gaps or illegal jumps in rent.Formal Complaint: Initiate a complaint for rent overcharge (Form RA-89) or a failure to provide a lease renewal.Service of Process: Legally deliver the summons or notice to the landlord’s registered agent via formal service of process.Evidence Exchange: Compel the production of invoices, payroll records, and building permits to verify claimed improvements (IAIs).Administrative Hearing: Present testimony before a DHCR representative or a judge in the Housing Part of the Civil Court.Judgment & Enforcement: Secure a final order for rent reduction, refund of overcharges, or a "Judgment of Possession."

6. Remedies for Rent Stabilization Violations

The law provides "teeth" to ensure that landlords do not treat overcharges as a simple cost of doing business.

Rent Refunds and Penalties

If a court or the DHCR finds that an overcharge was "willful," the landlord may be ordered to pay treble damages (three times the amount of the overcharge). Additionally, the landlord is typically required to pay the tenant's attorney fees, shifting the financial burden of the housing dispute onto the violator.

Injunctive Relief

In cases where a landlord refuses to offer a renewal lease or threatens to lock out a tenant based on an illegal deregulation claim, the tenant may seek injunctive relief. This is an emergency court order that maintains the status quo and prevents the landlord from taking any "self-help" measures while the legal status of the apartment is determined.

7. Why Legal Review Matters in Rent Stabilization Matters

Rent stabilization is a technical discipline where the difference between a market-rate liability and a life-long protected home depends on the forensic integrity of the rent history. The statutes governing New York housing are dense and subject to frequent legislative amendments. Relying on an outdated lease or an unverified rent ledger is a strategic failure that invites the permanent loss of stabilized status. SJKP LLP provides the clinical clarity needed to navigate these high-friction disputes. We analyze the regulatory "rails" to determine if your rent is lawful and if your tenancy is secured.

Evidence Checklist: Auditing Your Stabilized Status

To perform a surgical review of your rent stabilization matter, please secure the following:

DHCR Rent History: The certified multi-year registration record for your specific unit.
The Current Lease & Rider: Including the original lease and all subsequent renewal offers.
Proof of Payment: Canceled checks or rent receipts to compare against the "legal regulated rent."
Improvement Notices: Any letters from the landlord regarding IAIs or MCIs.
Service Records: Documentation of any persistent service decreases (e.g., no heat, broken elevator) which can justify a rent reduction.

06 Feb, 2026