Market rate apartment rental rates and lease terms are negotiated between the owner and tenant. The New York City Rent Guidelines Board (NYCRGB) determines rent increases for lease renewals of rent stabilized apartments, lofts, hotels and single room occupancies (SROs). It does not set the rent increase for vacancy leases, rent controlled apartments, unregulated apartments, or subsidized housing. Rent increase percentages for rent stabilized apartments and lofts are adjusted each year.
For renewal leases beginning between October 1, 2016, through September 30, 2017, the rent increase for rent stabilized apartment and loft renewals is:
However, if a tenant is paying a "preferential rent," which an owner agrees to charge and is lower than the legal regulated rent that the owner could lawfully collect, the owner may be allowed to increase the rent up to the "legal regulated rent," even if the increase is greater than the rent increase guidelines that are in effect.