The 2026 NYC Rent Regulation Landscape
New York City's rent stabilization system affects over one million apartments and is governed by a complex web of state and local laws that change frequently. For landlords operating in this environment, staying compliant isn't optional, violations can result in rent rollbacks, treble damages, and even criminal penalties.
This guide reflects the regulatory environment as of January 2026, incorporating recent Rent Guidelines Board decisions and the ongoing implementation of the Housing Stability and Tenant Protection Act.
Rent Guidelines Board (RGB) Increases for 2026
The RGB sets allowable rent increases for lease renewals on stabilized apartments. For leases starting between October 1, 2025 and September 30, 2026:
- One-year leases: Check current RGB order for exact percentage
- Two-year leases: Slightly higher than one-year rate
Importantly, these increases only apply to lease renewals, they don't justify mid-lease rent increases, and they can't be combined with other increases except as specifically permitted by law.
Proper Rent Registration
Every rent-stabilized apartment must be registered annually with DHCR by July 31. Failure to register bars rent collection above the last registered legal rent, a costly mistake that we see landlords make every year.
Capital Improvement (MCI/IAI) Changes
The 2019 Housing Stability and Tenant Protection Act dramatically changed how landlords can recoup capital improvement costs through rent increases.
Major Capital Improvements (MCIs)
Building-wide improvements like new boilers, roofs, or windows can still justify rent increases, but with significant limitations:
- Annual increases capped at 2% of current rent
- 30-year amortization (previously 8 years for buildings with 35+ units)
- MCI increases are now temporary, they expire when fully amortized
Individual Apartment Improvements (IAIs)
Renovations to individual apartments during vacancy are now limited:
- $15,000 lifetime cap per apartment (indexed for inflation)
- 30-year amortization period
- Documentation requirements are strict, keep all receipts and contracts
Good Cause Eviction: What Landlords Need to Know
New York's Good Cause Eviction law expanded tenant protections across the state. While rent-stabilized apartments were already covered, this legislation affects market-rate units as well.
Permitted Grounds for Non-Renewal
- Non-payment of rent
- Violation of lease terms
- Illegal activity on premises
- Owner occupancy (with restrictions)
- Substantial rehabilitation requiring vacancy
Rent Increase Limitations
Under Good Cause Eviction, rent increases for covered units cannot be "unreasonable." Courts may find increases unreasonable if they exceed 10% or 5% plus CPI (whichever is greater) without documented justification.
Required Notices and Disclosures
NYC landlords must provide numerous notices to tenants, each with specific timing and content requirements:
- Lease renewal: 90-150 days before expiration (varies by tenancy length)
- Rent stabilization rider: Required with every lease
- Lead paint disclosure: Required for all pre-1978 buildings
- Bed bug history: Must disclose any infestations in past year
- Flood zone notice: Required if property is in a flood zone
Compliance Strategies for NYC Landlords
Managing rent-stabilized properties profitably while maintaining full compliance requires systematic processes:
- Calendar all registration and renewal deadlines
- Maintain meticulous records of all improvements and expenditures
- Use proper DHCR-approved lease forms and riders
- Document all tenant communications in writing
- Conduct annual rent roll audits to catch errors
Get Expert NYC Property Management
Navigating NYC's rent regulation system is a full-time job. Property Perfected specializes in compliant, profitable management of rent-stabilized and market-rate properties. Request your free portfolio analysis to learn how we can help you maximize returns while staying fully compliant.
