Determining if a Rent Increase is Unconscionable
In Fromet Properties Inc. v. Dolores Buel, et al., the court found that in determining
unconscionability, the trial judge may consider: 1) the amount of the proposed rent increase; 2)
the landlord’s expenses and profitability; 3) how the existing and proposed rent compare to rents
charged at similar rental properties in the geographic area; 4) the relative bargaining position of
the parties; and 5) based on the judge’s general knowledge, whether the rent increase would
shock the conscience of a reasonable person.
Rent Control
The State of New Jersey does not have a law governing rent increases. However, municipalities
within the State may adopt ordinances regulating the amount and frequency of rent increases
within their specific municipality. A municipality’s ordinance may not cover all rental units. To
find out if a rent control ordinance exists, and if it applies to a specific rental unit, contact the
municipal clerk in the municipality where the rental premises is located. (See Attachment B,
Rent Control Survey.)
Exemption from Rent Control
Pursuant to N.J.S.A. 2A:42-84.2 through 2A:42-84.6, certain newly constructed multiple
dwelling units may be exempt from rent control ordinances. Prior to entering into any lease for
tenancy, the landlord of an exempt property must notify the prospective tenant that the rental unit
is exempt from rent control. (See Attachment C, Newly Constructed Multiple Dwelling Law)