New York City is one of the most iconic cities in the U.S. Here, you can find top-class structures, apartments, and commercial buildings. You can easily find a property that fits your needs and preferences. Whether renting an apartment for your family or finding a lucrative commercial building for your business, this city provides you with the best rental units with all amenities and a luxurious life.
At present, NYC is the most expensive city in the U.S., with an average rent of $3,887 per month. This is approximately 150% higher than the national average monthly rent, which is $1,555. Although the rent is relatively high in NYC here, you can rent a property stress-free. There are many rent laws that protect your rights as a tenant. These laws are generally modified occasionally to ensure a simple and safe renting process.
This blog provides an overview of the modified NYC rent laws and lists some rules and regulations that landlords and tenants must follow.
Understanding the Changes in the NYC Rent Laws
NYC rent laws aim to protect the interest of the tenant against exploitation by landlords. At the same time, it provides basic guidelines for landlords regarding rent control, rent stabilization, and eviction process. It is a set of rules and regulations that guide the behavior of tenants and landlords.
Here is an overview of the changes in NYC rent laws that every tenant and landlord must know:
1. Capping Security Deposit
The new rent law caps the security deposit limit of the landlord. According to this rule, a landlord can charge a security deposit that is less or equal to a month’s rent only. For example, if the rent of a property is $2,000 per month, the landlord can charge a security deposit of up to $2,000 only. This law is applicable to all rentals.
2. Limiting Late Payment Fees and Background Check Fees
A landlord can charge a late fee from the tenant up to $50 or 5% of the monthly rent, whichever is less. A rent is said to be late only if it is paid after 5 days of the due date. Besides, a landlord can also ask for a fee of $20 for background checks. For this purpose, the landlord has to provide a copy of the background check to the tenant; otherwise, they cannot charge you.
3. No More “Tenant Blacklist”
According to new rent laws, a landlord cannot deny you the right to rent any property based on your past legal conflicts. For example, in the past, if you have sued your landlord for not returning a security deposit or have a default in payment of rent, the landlord cannot deny you to rent the property on these grounds. The law also provides that a landlord has to pay a fine if they fail to give a good reason (other than past experiences) for denying renting services to the tenant.
4. Making it Easier to Break a Lease
The new law provides that if a tenant wants to move out or vacate the property before the lease ends, the landlord must try his best efforts to find a new tenant. If the landlord successfully finds a tenant who is paying the rent equal to the previous tenant or more than that, the law considers that the previous lease came to an end.
5. Landlord Must Provide a Receipt of the Transactions
If the tenant is paying the rent in cash, cheque, or money order, the landlord should provide a receipt of the payment made. The landlord must give the tenant the receipt every month. Moreover, the landlord should keep proof of all the payments made through cash for 3 years.
6. Tenant Rights in Eviction Process for Non-Payment of Rent
The landlord cannot evict a tenant unless they provide a 14-day prior notice in writing to vacate the property. However, if the tenant pays all the amount due, the landlord cannot forcefully evict them. Furthermore, the landlord cannot initiate an eviction process for non-payment of other fees like late, legal, maintenance, or any other charges.
7. Repayment of Security Deposit
The new laws simplify the repayment of security deposits. The landlord must return the security deposit within 14 days of vacating the property. If the landlord deducts any expenses or damage from the security deposit they have to issue a receipt to the tenant for the same, elaborating the damage and the cost. Moreover, if the landlord fails to repay or return the security deposit within 14 days, they must repay you the entire amount, whether there is damage or not. Simply, after 14 days, the landlord cannot deduct any amount from the security deposit.
Simplify Renting: Partner with a Property Management Firm to Know Everything about NYC Rental Laws
Whether you are a tenant or a landlord, thoroughly understanding the NYC rent laws and regulations is a must. For a tenant, the knowledge of rental laws is a must to avoid exploitation and secure their rights. For landlords, understanding each and every law is essential to eliminate unnecessary legal disputes. From rent control to the eviction process, each law plays a vital role in simplifying the tenant-landlord relationship.
However, in a complex market like NYC, it is quite challenging to manage the legal aspect of property management on your own. It is better to consult with a property management expert like Citadel Property Management Corp. to know every minute detail about the NYC rent laws.
Frequently Asked Questions
1. What is the most expensive borough in NYC to rent a property?
The most expensive borough in NYC to rent a property is Manhattan.
2. What are the new rules for Major Capital Investment (MIC) in NYC?
The new rule for Major Capital Investment states limits the increase in rent due to a major MIC to 2%.
3. What is the new rule for Individual Apartment Improvements (IAI) in NYC?
The new rules state that a landlord can increase the monthly rent due to an IAI up to $89.29 in a building with 35 or fewer apartments and up to $83.33 in a building with more than 35 units
4. What is the average rent of a bedroom apartment in NYC?
The average rent of a one-bedroom apartment in NYC is $3,887 per month.
