On June 21, the NYC Rent Guidelines Board voted in the largest rent increases on rent-stabilized apartments since 2013. The Rent Guidelines Board is responsible for setting the allowable increases on stabilized apartments every year. Leases commencing after October 1, 2022, will experience a 3.25% increase on 1-year renewals and a 5% increase on 2-year renewals.
This is a stark difference from last year’s vote: for 1-year renewals, 0% for the first 6 months and 1.5% for the 2nd 6 months, and for 2-year renewals, 2.5%.
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:
Fortunately for these renters, the Rent Guidelines Vote doesn’t apply to them yet. They can still 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 2.5% since the Guidelines Board has just priced new 2-year renewals at 5%. Renters who want to maintain your flexibility and see what the Guidelines Board votes again next year perhaps will want to extend just for 1 year.
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.