A renter who lives alone in a rent stabilized apartment in New York City moves out, leaving the apartment empty.
What can the landlord charge a new tenant?
I’ve asked his question of a number of people. Most have answered–I suspect correctly–that the landlord can ask market price or even more–whatever the landlord wishes.
However, a large minority answered that the landlord can raise the rent only twenty percent. (Let’s assume that the building is not co-op, so the landlord can’t sell the apartment.)
While I suspect that the twenty percent answer is incorrect, the fact that so many people gave the same twenty percent answer probably means that hte twenty percent did or does apply to something.
The basic rule, subject to exceptions is that landlords can increase the stablized rent by 20% as a vacancy increase, plus the regular rent increase set by the rent guidelines board for that year, and that is what people are telling you.
However, there are a lot of adjustments based on things like the length of tenancy, low rent bonuses, and other factors. Also, if the building has a “major capital improvement” or there is an “individual apartment improvement,” that can be the basis for an increase.
Further, if the regulated rent is increased to above a deregulation threshold, currently $2,700.00, the apartment will go to free-market rent, unless the building participates in certain tax abatement programs.
This is all subject to nearly constant change through regulation and litigation.
Many thanks for excellent answer and a follow-up question
I assume your answer is for a NON-co-op building.
If the building is a co-op, can’t the sponsor sell the vacant apartment for whatever the sponsor can get? If so, then the sponsor is very unlikely to rent the vacant apartment, but will sell it. If the apartment is owned by one who bought it from the sponsor, then, of course, it can be sold at any price it can command.(I assume that if the building is NOT a co-op, then the owner of the building can’t sell the apartment.)