Rent Increases 2. with DHCR approval, if the owner installs a
building-wide major capital improvement; or
In New York City, rent control operates under the
Maximum Base Rent (MBR) system. A maximum 3. in cases of hardship with DHCR approval.
base rent is established for each apartment and
adjusted every two years to reflect changes in Rent Overcharges
operating costs. Owners, who certify that they are
providing essential services and have removed For rent controlled apartments, complaints
violations, are entitled to raise rents the lesser of submitted by tenants will result in an order by
either the average of the five most recent Rent DHCR that establishes the Maximum Collectible
Guidelines Board annual rent increases for one- Rent and directs that any overcharge be refunded
year renewal leases or 7.5 percent each year for a period of no greater than two years before
until they reach the MBR. Tenants may challenge the filing of the complaint. If the refund is not
the proposed increase on the grounds that made, the tenant can proceed to court to calculate
the building has violations or that the owner’s the overcharge and enforce the order.
expenses do not warrant an increase.
Rent Reductions for Decreases in Services
Outside New York City, the New York State
Division of Housing and Community Renewal Please refer to the section above under Rent
(DHCR) determines maximum allowable rates of Stabilization.
rent increases under rent control subject to the
limitations of the annual rent guideline board Harassment
increases. Owners may apply for these increases
periodically. Please refer to the section above under Rent
Stabilization.
Rents can also be increased in any one of three
ways, both inside and outside of New York City: Rent Registration