The new guideline increases for rent stabilized lease commencing between October 1, 2023 and September 30, 2024:
- on a one-year lease or period, 3%
- on a two-year lease or period, 2.75% for the first year of the lease and 3.2% of the amount lawfully charged in the first year, excluding any increases other than the first-year guideline increase.
Our reading is as follows:
- Assume tenant has an expiring lease that renews during RGB 55. The rent under the expiring lease is $1000. The tenant selects a two year term:
rent for first year $1000 X 1.0275 = $1,027.50
- rent for second year $1,027.50 X 1.032 = $1,060.38
DHCR will need to promulgate renewal offer forms that reflect the bifurcated rent increase for the 2 year term. Do not use the forms in existence for RGBO #54 as they will not reflect the bifurcated increase for two year renewal leases.
If you wish to discuss these new rent increases in greater detail, contact us.