When Can NY Landlords Pass Through Costs to Raise Rent?

For renters in New York, understanding when and how a landlord can increase rent through pass-through costs can be confusing. With rent regulations in place, there are rules landlords must follow if they want to raise rents for things like building improvements or rising expenses. This guide will help you make sense of your rights, the required process, and the paperwork involved.

What Are Pass-Through Costs in New York Rentals?

"Pass-through" costs are expenses that landlords may pass on to tenants through rent increases, beyond your regular annual increases. In New York, this is mostly seen in rent-regulated apartments—those under either rent control or rent stabilization. Typical examples include:

• Major Capital Improvements (MCI): Building-wide upgrades like roofs, boilers, or windows
• Individual Apartment Improvements (IAI): Upgrades or renovations done inside a single apartment
• Increased operating or maintenance costs (less common now due to stricter laws)

Most landlords in New York cannot simply pass through every cost—they must follow strict rules, especially for rent-stabilized or rent-controlled apartments. Market-rate apartments have fewer protections but may also be subject to lease terms.

When Can a Landlord Increase Rent for Pass-Through Costs?

If your apartment is rent-stabilized or rent-controlled, landlords must apply to the New York State Division of Housing and Community Renewal (NYSDHCR)—the official tribunal for residential tenancy matters—to increase your rent for pass-throughs. For Major Capital Improvements (MCI) or Individual Apartment Improvements (IAI), landlords must:

• Submit an application with details of the work and costs
• Receive approval from the NYSDHCR before raising your rent
• Notify tenants formally using official forms

Without NYSDHCR approval, pass-through cost increases are not allowed. Note: Recent changes to state law (the 2019 Housing Stability and Tenant Protection Act) have limited these increases and set caps on how much landlords can charge. For more, review New York State Real Property Law – Tenant Rights.^[1]

How Does the Pass-Through Process Work? (Forms & Notices)

Here is how the process generally works for different pass-through scenarios:

Major Capital Improvements (MCI)

• The landlord files the Form RA-79: MCI Application with NYSDHCR
• Tenants receive a Notice of MCI Application
• You have 60 days to respond, object, or provide comments (use DHCR’s Tenant Response forms in this situation)
• NYSDHCR reviews and decides if the increase is justified
• If approved, the increase is added to your rent as a separate charge

Individual Apartment Improvements (IAI)

• Landlords must keep records and receipts for renovations or improvements
• If the unit is vacant, or if the existing tenant consents in writing, some rent increases may be allowed (but strictly limited since 2019)
• NYSDHCR oversight is required; tenants can request to verify improvements using Form RA-89: Tenant's Application for Review of Rent Increase

Renters can check the official guidance on the NYSDHCR website for updated limits and procedures for MCIs and IAIs.

Official Forms for Renters

• Form RA-79: Owner’s Application for MCI Rent Increase (download here): Used by landlords to request approval for MCI rent increases; tenants receive notice and may respond.
  Example: If your building got new windows and your landlord claims this justifies a rent hike, they must submit Form RA-79 and notify you.
• Form RA-89: Tenant's Application for Review of Rent Increase (download here): Used by tenants to challenge or seek a review of a rent increase.
  Example: If you believe your rent increase is unfair or that the improvements were not actually made, submit this form to NYSDHCR.

See the full set of NYSDHCR tenant forms for rent disputes and objections.

Your Rights and Protections Under New York Rent Laws

New York's rent laws strongly protect renters against unfair or excessive pass-through increases. Key protections include:

• Landlords must prove the benefit and valid cost of any improvement or renovation
• NYSDHCR must approve all pass-throughs for regulated apartments
• Strict limits on how much can be added to rent for MCIs/IAIs
• Written advance notice to tenants before any increase
• The right to object or appeal to NYSDHCR

Always make sure you only pay officially approved increases and always receive formal notice and documentation.

Steps for Renters: What To Do If You Get a Pass-Through Notice

• Read any notice or form carefully, paying attention to deadlines
• If you disagree, collect evidence and submit objections using Form RA-89 or a relevant tenant response form
• Contact NYSDHCR or a local tenant advocacy group for help
• Never pay unauthorized rent increases—ask for decisions in writing

Following correct steps will protect your rights under the law and stop unlawful rent hikes.

FAQ: Rent Increases and Pass-Throughs in New York

1. Can my landlord charge me for building upgrades any time?
   No, for rent-regulated apartments, landlords must apply to NYSDHCR and receive approval before charging you more for upgrades.
2. How do I object to a pass-through rent increase?
   Use Form RA-89 to file your objection with NYSDHCR within the stated deadline.
3. Do the same rules apply for market-rate apartments?
   Market-rate apartments are generally not covered by rent stabilization, so landlords have more freedom unless your lease states otherwise. Always check your lease and local laws.
4. Where can I find the official rules and legal text?
   Refer to the New York State Real Property Law – Tenant Rights and NYSDHCR website.
5. What should I do if I think my rent was raised illegally?
   File a complaint with NYSDHCR and provide any supporting evidence. Contact a tenant advocacy service if you need help.

Key Takeaways for New York Renters

• Pass-through rent increases are only allowed for regulated apartments when NYSDHCR approves them
• Tenants have the right to be notified, object, and appeal any rent increase for improvements
• Always use official forms and resources to protect your rights

Staying informed and acting quickly are your best protections as a New York renter.

Need Help? Resources for Renters

• NYSDHCR (Division of Housing and Community Renewal) – Handles rent disputes and complaints
• Tenant Forms and Applications – Find forms to respond to or challenge rent increases
• NYC HPD – Resources for Tenants
• NYC HRA – Free Tenant Legal Assistance

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1. New York State Real Property Law – Tenant Rights
2. NYSDHCR – Rent Regulation Overview
3. NYSDHCR – MCIs and IAIs
4. NYSDHCR – Forms for Tenants

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