BBG News

Rent Guidelines Board Sets New Rent Increases, With Split Increases in Two Year Leases

Jun 23, 2023

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.

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