New York City Rentals: Leases

Understanding the different types of leases you may run into when searching  New York City rentals may make the difference on where you end up living. For instance, if Chelsea apartments offer a rent controlled lease and Midtown apartments have rent stabilized leases, do you know which is the better option? In this article we’re going to cover the different types of leases you will see in New York City rentals.

Types of Leases

To the unseasoned renter, the different types of available leases can be quite confusing. Especially if you are unaware of the legal implications.

Rent-Controlled New York City Rentals

Rent control was first formed to protect renters after the war to ensure prices would not increase for those who couldn’t afford it. Although rent control is no longer in effect, there still are instances where a certain apartment has been grandfathered in. The rent control status will terminate when the tenant moves out, so there is no way for you, a new occupant, to take advantage of rent-controlled NYC apartment rentals. If anyone is offering you their rent-controlled status, it is illegal. The tenant must have been in continuous residence since 1971 in order to be grandfathered in.

Rent-Stabilized Lease

For the apartments that were part of the rent-controlled buildings, many have been switched over to rent stabilization. This is similar to rent control but has much more liberal terms. Under rent-stabilization, NYC apartment rentals are regulated against certain rent increases, leasing terms, rent renewals, and the required utilities that must be offered. All this is regulated by the city of New York. This, just like rent-controlled New York City rentals is for the benefit of the renter, so they are not unfairly taken advantage of. Other features of rent-stabilized leases include:

Standard rent increases are set at particular limits

Tenants have the right to automatically renew their lease

A landlord does not have the right to terminate or end a lease unless there is documented due cause, such as with a default on the rent or a violation of the lease. Property damage or disturbing the neighbors is also a reason for possible termination but must be proven.

All tenants in New York have the right to sublet their apartments for up to two years. They must let their landlord know in writing.

Decontrolled

A decontrolled lease status for New York City rentals involves all leases in which the apartment is vacant or if the rent is above $2,000 per month. Once it hits this number, the rent can be increased at the discretion of the landlord. Rent stabilization is not applicable to these NYC apartment rentals. An apartment can also enter into a decontrolled status if the tenant’s annual income surpasses $175,000.

Needless to say, luxury Manhattan NYC apartment rentals do not fall into the category of rent stabilized. There are a few new construction apartments which have adopted the stabilization for tax purposes (these are over $2,000 per month) but these are few and far between.

We hope you now have a much clearer understanding of NYC apartment rentals and the way leases work. If you’re still looking for that perfect New York City rental, give us a call at Lara Group today. Whether you are looking for Chelsea apartments, midtown apartments, or somewhere else in the Manhattan area, we have just what you need.

Related posts:

1. Time For a Change: From Suburban to City life in New York City Rentals