New York Rent Increase Laws

Is there a rent increase limit in New York? 

The Empire State’s rent increase laws are extremely detailed. Landlords, take note:

Statewide Caps

New York’s policy depends on the type of unit you have, such as:

• Market-rate units: Landlords raise rent as needed by considering square footage, property features, and renter demand.
• Rent-stabilized units: The Rent Guidelines Board (RGB) sets annual price caps for apartments in New York City and other counties.
• Rent-controlled units: New York also has specific rent-controlled units, but they’re less common. In these cases, state law limits price adjustments to about once every 2 years and determines a monthly rate based on the Maximum Base Rent Program (MBR).

While state law doesn’t enforce a maximum for market-rate units, New York’s Good Cause Eviction law protects tenants from extreme or unreasonable rent increases (typically anything over 5% + local inflation rate). In these cases, tenants can file a claim for local courts to review (N.Y. Real Prop. Law §§ 210–216).

Local Rent Control Ordinances

New York law prohibits an individual city or county from enforcing its own rent control laws. Instead, the state regulates rent prices under the Emergency Tenant Protection Act (EPTA). Then, local jurisdictions can declare a housing emergency if the vacancy rate is less than 5%, opt in, and decide which properties the state’s policy covers.

Here’s a quick list of regions that enforce additional rent control under the ETPA:

• New York City: 3% for 1-year leases, and 4.5% for 2-year leases for applicable properties (New York City, N.Y., Apartment & Loft Order No. 57)
• Nassau County: 2% for 1-year leases, and 3% for 2-year leases for applicable properties (Nassau County, N.Y., Rent Guidelines Bd. Order 2025-2026 Cycle)
• Rockland County: 5% for 1-year leases, and 6% for 2-year leases for applicable properties (Rockland County, N.Y., Rent Guidelines Bd. Order 2025-2026 Cycle)

Remember, the local Rent Guidelines Board sets different caps each year. Don’t forget to check the latest updates.

Exceptions to Rent Control Laws

At the state and local level, New York rent increase laws include various exceptions. Typically, laws exempt new buildings, small rental properties, and condos.

Additionally, federal housing programs such as Section 8 may apply. We recommend checking your local laws or speaking with a real estate lawyer.

Rent Increase Notice Periods

When increasing your monthly rate, New York rent increase laws set different requirements based on the tenancy’s length, not the lease agreement type.

If you’re increasing a tenant’s rent by 5% or more, follow these timelines:

• Give 30 days’ notice if the tenant has lived there for less than 1 year.
• Give 60 days’ notice if the tenant has lived there for 1–2 years.
• Give 90 days’ notice if the tenant has lived there for 2+ years (N.Y. Real Prop. Law §§ 226-c).

Whether you have a month-to-month agreement or a fixed-term lease, the same notice periods apply.

Keep in Mind: State law doesn’t mandate notice if you’re raising rent by less than 5%, but we recommend informing tenants anyway.

How to Deliver a Rent Increase Notice in New York

Whether you have a room rental agreement or a traditional lease, top landlords notify tenants using the following delivery methods:

• Hand delivery 
• Drop-off at the property
• Certified Mail
• Electronic delivery via landlord software (if you outline the process in your lease)

When mailing the notice, wait a few days to account for delivery delays.

Understanding Illegal Rent Increase and Retaliation

You can’t raise rent to punish tenants for taking protected actions or discriminate against them. Keep these state and federal laws in mind:

Landlord retaliation: Only adjust your monthly rate in good faith when renewing the lease. Never attempt to get back at tenants for exercising their legal rights, such as:

• Reporting code violations.
• Filing complaints with government agencies.
• Requesting repairs.
• Participating in or joining a tenant union.

If you raise rent within 1 year of the above, courts presume retaliation. When renewing leases during this window, consult a lawyer to mitigate risk (N.Y. Real Prop. Law §§ 223-b).

The Fair Housing Act (FHA): Federal law prohibits landlords from offering unfair rental terms or considering legally-protected traits, such as race, color, religion, national origin, or disability (Fair Housing Act).

As a best practice, follow your lease terms, be consistent across applicants, and document your process for added legal protection.

How to Write a New York-Compliant Rent Increase Letter

When creating your rent increase letter, always include the following:

• Full property address
• Tenant names
• New total rent amount
• Exact dollar amount of the increase
• Effective date
• Instructions for tenants (how to accept or opt out)

Try using TurboTenant’s free rent increase letter template to save time, avoid disputes, and create a standardized workflow across all tenants.

Managing the Rent Increase Process with Tenants

Here’s how top landlords keep the ball rolling after tenants respond to their proposals:

• Accept: Once you renew the agreement, start charging the new amount on the effective date. But remember, you must wait a 5-day grace period before charging late fees (N.Y. Real Prop. Law § 238-A(2)).
• Decline: Start discussing the move-out process. Next, begin searching for your next tenant to fill your vacancy quickly.
• Negotiate: Consider offering a longer lease term or a phased adjustment period if a great tenant asks you to negotiate.

Overall, New York rent increase laws are detailed — but that doesn’t mean you have to stress over every renewal. Use our helpful guide to protect your investment and stay profitable.