How much can rent be raised in a lease renewal?
Question Details: Is there any limitation for a landlord to raise the amount of rental fee after the 1st year of rental contract or is it a fairly reasonable that the new rental rate is hiked to any price? Right now, I am renting my studio for $1,800 and the corporation asks me for $2,200 if I want to renew. The building was constructed at least 50 years ago.
In NY the amount a landlord may charge as a rent increase for a residential apartment depends on whether or not the premises are subject to either the rent stabilization law or the rent control law. These laws regulate the amount of rent a landlord can charge a tenant & also create various landlord & tenant rights & obligations.
Generally, a building containing less than 6 residential units is not subject to the rent stabilization law. A rent controlled apartment would have to become legally "decontrolled" as provided in the rent control statute. If the apartment is not rent stabilized or the rent controlled, then the landlord is allowed to charge a free market rent, which is usually consistent with what the fair market rental value is for similar apartments in that neighborhood or general area. Good luck!
