On June 21, the NYC Rent Guidelines Board voted on the allowable rent increases for rent-stabilized apartments. The Rent Guidelines Board is responsible for setting the allowable increases on stabilized apartments every year. Leases commencing after October 1, 2023 will experience a 3% increase on 1 year renewals. The vote on 2-year renewals was two-fold; a 2.75% increase on the first year, and 3.2% increase on the second year.
This is similar to last year’s vote: for 1 year renewals, 3% and for 2 year renewals 5%.
So what does this mean for rent-stabilized renters? It depends on a few things.
Stabilized renters who have a lease renewal coming up before October 1:
For renters with leases expiring before Oct 1, 2023, the Rent Guidelines Vote doesn’t apply to them yet. They will renew their lease based on the increases of last year’s vote. Whether to renew for 1 or 2 years is the question. If a renter is planning to stay in your apartment long-term, it may be wise to consider the 2 year renewal at 5% since the Guidelines Board just priced one year renewals at 3%. So if you renew for 1 year at last year’s vote for 3.25% and then again for 1 year at this year’s vote of 3%, that’s a higher increase than just signing for two-years at 5%.
Stabilized renters who have a lease renewal coming up after October 1:
These renters will have an increase determined by the new vote. These renters too must decide whether to renew for 1 or 2 years. We asked renters to share why they’re considering a 2 year lease renewal. One stated “I prefer the certainty of locking in the rate for 2 years. I don’t want to worry about increased rent next year”. While another renter is opting for the 1 year renewal because “we likely won’t be here longer than that”. Of course there are some renters that may be betting that the Board vote will be much lower next year and opt to extend just 1 year and wait for next year’s result.
For renters who are unsure whether they have a stabilized apartment, they should submit a request for their rental history to DHCR. Find more information here.
Renters who have a stabilized lease should make sure their renewals are in accordance with the Rent Guidelines Board vote. Openigloo put together this calculator to help stabilized tenants determine what their new rent should be – based on the guidelines vote, the lease expiry and the length of the renewal. Learn more here.