What Happens When Your New York Apartment Loses Rent Control?

If you’ve lived for years in a rent-controlled apartment in New York, you may worry about what happens if your unit switches to market rent. Understanding your rights and options under current New York State law can help you plan for rent increases and protect against unlawful eviction.

Understanding Rent Control and Market Rent

Rent control and rent stabilization protect tenants from sudden, large rent increases, and set limits on how much landlords can charge. When an apartment shifts from rent-controlled or stabilized status to 'market rent,' the landlord is generally free to set the rent at prevailing market rates. This can mean significant rent increases for tenants, so it’s crucial to know when this can happen—and what your rights are.

Key Definitions

• Rent Control: A stricter, older form of rent regulation, mostly in place for tenants who have lived in their apartments since before July 1, 1971.
• Rent Stabilization: Applies to many more apartments built before 1974 or those with certain tax benefits, with regulated increases and strong tenant protections.
• Market Rent: The current open-market rental price for a unit. Once a unit leaves regulation, landlords can charge new tenants any amount.

To learn more about these types, visit the New York State Homes and Community Renewal Rent Regulation page.

How Apartments Transition from Rent Control to Market Rent

A rent-controlled apartment can become "decontrolled"—and thus a market rent unit—in specific situations. Common reasons include:

• The rent-controlled tenant moves out or passes away, and no eligible family member claims succession rights.
• The building’s owner applies for and is granted a legal deregulation under current laws.

Once an apartment is deregulated, the protections of rent control or stabilization no longer apply, meaning your rent can increase to whatever the landlord sets for the new lease.

Legal Protections During the Transition

The New York State Rent Stabilization Code and Rent and Eviction Regulations set standards for any transition and ensure that tenants receive proper notice.

• Landlords must give advance written notice before raising the rent or requiring you to vacate.
• Tenants with proper succession rights (close family who lived in the unit) may continue with rent regulation; if not, the unit may be released at market rent.
• You can request a review or file a complaint if you believe your apartment was unlawfully deregulated.

Key Forms and How They're Used

• DHCR Form RA-23.5 (Notice of Deregulation):
  Given by the landlord to the tenant when an apartment is leaving rent regulation. For example, if your landlord claims your unit is now market rent, they should serve this form. View DHCR RA-23.5 form and instructions.
• DHCR Form RA-89 (Tenant’s Complaint of Rent and/or Other Specific Overcharges):
  Use this form if you believe your rent was unlawfully increased or the apartment was improperly deregulated. For example, if you receive a huge rent hike notice without proper explanation, you can file this with the NYS Division of Housing and Community Renewal (DHCR). Access RA-89 Complaint Form and Guide.

Who Resolves Rent Regulation Issues?

The New York State Division of Housing and Community Renewal (DHCR) handles questions and disputes about rent control, stabilization, and market transitions for tenants across the state.

Your Rights When Facing Market Rent

Facing the loss of rent control doesn't mean you lose all protection. Under New York State Real Property Law you still have basic rights, including:

• The right to proper legal notice before eviction or non-renewal of a lease.
• Protection from discrimination or retaliation for asserting your rights.
• The ability to dispute any sudden, unsubstantiated rent hikes through DHCR.

Action Steps for Renters

• Check the status of your apartment using the NYC Rent History Lookup tool or by contacting DHCR.
• Request supporting documentation from your landlord if you are told your apartment is no longer regulated.
• File a complaint with DHCR using the RA-89 form if you believe your deregulation or new rent is not legal.
• Consult DHCR guidance or seek help from tenant advocacy organizations if unsure.

FAQ: Moving From Rent Control to Market Rent in New York

1. Can my landlord raise the rent to any amount after my unit is no longer rent-controlled?
   Yes. Once your apartment moves to market rent, the landlord may set any rent amount for a new lease unless other local laws apply. However, proper notice must be given.
2. What notice must my landlord give before increasing rent or ending my lease?
   Landlords must give written notice in line with the length of your tenancy and local laws. For leases over one year, at least 90 days’ notice is typical under current law.
3. Do I have the right to stay if my apartment becomes market rent?
   You may stay until your lease ends or proper notice of non-renewal or rent increase is given. If the landlord offers a new lease at market rate, you must decide whether to accept.
4. How do I file a complaint if I believe my unit was unlawfully deregulated?
   File DHCR Form RA-89 with supporting documents. Instructions and the form are available from the DHCR Complaint Forms page.
5. Does succession law protect my family members?
   If another qualified family member has lived with you for at least two years, they may inherit your rent-regulated lease. More details are on the DHCR Family Member Rights page.

Key Takeaways

• Loss of rent regulation can mean much higher rent, but you still have procedural rights.
• Landlords must give written notice and may need to use official forms during deregulation.
• Disputes about deregulation or rent increases go to the New York State DHCR.

Need Help? Resources for Renters

• Contact New York State DHCR – Assistance with rent regulation status, forms, and complaints.
• NYC Department of Housing Preservation & Development Rent Info
• DHCR: Rent Regulation Rights and Responsibilities

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1. New York State Homes and Community Renewal: Rent Regulation
2. NY State Rent Stabilization Code
3. New York State Real Property Law Article 7, Section 220, and Rent and Eviction Regulations
4. DHCR Official Complaint Forms

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