Are You Paying Too Much to Live in New York City?

Ain’t nothing going on but the rent, y’all! So there I was about to sign my third and final NYC apartment lease (thank you Lord!) when I decided I needed to be sure sure I was not being overcharged. Yes, I had already asked for a decrease in rent from year 1, but after learning a bit more about rent stabilized buildings in NYC—which mine is—I sought after additional information. I started asking questions. “Blessed are those who ask the questions, brotha!”

Now let’s be honest, we are ALL paying too much money to live in this city. After my NYC renting experience, I assure you I am. But what do the laws say? Please be mindful the information I’m sharing in today’s post is for rent stabilized units. If you live outside the confines of rent stabilization, it’s pretty much the wild wild west from what I hear. There are fewer limits on how the rent can change from year to year. Rent stabilized buildings, on the other hand, provide various legal protections to tenants and limit yearly increases in rent. There are some steps I took to determine whether I was or was not being overcharged and I’m sharing them with all of you. Without further ado…

I inquired about my unit’s rent history. Y’all, please do this especially if you are new to the city. The NYC Office of Rent Administration houses our rent histories and this is the first step to determine if you are paying too much. You must know what previous renters paid, especially the ones right before you. You can either call the office to request they mail the rent history to you OR schedule an appointment to pick up the documents. They do not allow walk-ins. I tried lol. Scheduling an appointment is the much quicker option. Calling one of the borough offices instead of the main office also yields faster results. For each year, the rent history displays the rent, name of the renter, incremental rent increase, and rent increase justification. My rent history goes all the way back to 1984 when the rent was $325. If you ask me…that’s exactly what I should be paying now. I digress…

Next, I looked up the rules about rent increase percentages allowed by law. Landlords are able to increase the rent when there is a vacancy, when there is a lease renewal, and when improvements are made to the unit or to the building. Prior to the 2019 Individual Apartment Improvements (IAI) law, there were fewer regulations on how landlords could increase rent when they made “renovations.” And I use this term with air quotes because many a time in NYC, these improvements are light and not worth a huge upcharge in the rent. If y’all really wanna make advancements, rewire the buildings for central heat and air. It’s 2023, y’all. Come on now. Here is the information I discovered:

Laws on rent increases for apartment improvements

Explanation of 2019 IAI law on rent increases for apartment improvements

Laws on rent increases after an apartment vacancy

Guide to rent increases for stabilized apartments – shows exact percentage increases allowed based on old and new laws!

Finally, I did a thorough comparative analysis using all the above information. I looked at vacancy and lease renewal rent increases based on the 2019 laws as I moved into my unit in 2021. I then looked at the percentage increase based on apartment improvements. Unfortunately, my apartment was “renovated” in 2018, before the new 2019 IAI law, so the landlord definitely took the opportunity to up the fee. I also turned over all this information to a lawyer to ensure nothing was missed. Seek legal consultation if you can! I work hard for my coins and I refuse to have anyone take advantage. My lawyer concluded I was not being overcharged since the major increases in rent took place because of apartment renovations prior to 2019. By law, I am being charged appropriately. In fact, I am being charged the preferential covid rate that cannot be wildly increased as long as I am a tenant. We thank God for preferential treatment. This information definitely helped me feel a little lighter when I signed my final lease. Prior to signing, I also used the NYC rent stabilized calculator to ensure the percentage increase from last year’s to this year’s rent was appropriate. It was.

Y’all, when my funds are on the line, I turn into Erin Brockovich with the quickness! I am the Resource Queen, and I want you all to use all the above judiciously. Especially prior to signing a lease in NYC, do your due diligence. I’ve done most of the research for us and now you should be better equipped to do your thing in the city! Also be sure to check out my tips and tricks for moving to New York City. It requires a lot to live here, y’all; more than most cities. I want y’all to be informed and feel equipped to tackle the experience. If you will live in NYC for a specific amount of time and/or do not care too much about comfort and convenience, definitely aim for a rent stabilized unit. There will be caps on rent increases from year to year and you will make out better financially. The caveat is that landlords of these buildings may be less likely to pour resources into upkeep and management as their return is not as high. These buildings are more likely to have tenants who have occupied units for 40+ years and still pay under $1000. Although I complain because we should still absolutely get timely service, common decency and respect, this situation does work for me because I am only here for three years and what I choose to prioritize is saving as much as possible for my future home. I aim to build my own wealth, not make someone else rich by paying off their mortgage. I did not even really understand rent stabilization prior to moving here. God is just so kind that He allowed me to fall into such a unit. Again, even though I have my qualms, I am grateful because in 2022 when NYC landlords decided the pandemic was over, my rent did not skyrocket. In fact, I just learned I am pretty much the only recent NYC transplant I know who is paying under $2000 for rent. There I was trying to decrease further from $XXXX and being just a little too proud to host a rent party (Ha!) when I could be paying $2500+. I just thank you, God! I am ecstatic to one day very soon transition to paying a mortgage, but until then, we buckle down, get the work done, and continue to invest in my future.

I really hope this post helps NYC renters old and new! Know your rights, y’all. As always, happy to answer any questions you may have. Until next time…