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How Apartment Improvement Rent Increases are Calculated

A building owner may raise the rent in an individual apartment based on increased services, new equipment, or improvements. This increase is in addition to the regular annual Rent Guidelines Board increases for rent stabilized apartments, and Maximum Base Rent increases for rent controlled apartments.

If an owner adds new services, improvements, or new equipment to an occupied rent stabilized or rent controlled apartment, the owner must get the tenant’s written consent to pay the increase. The owner may charge the tenant a rent increase equal to 1/40th of the cost of the new equipment, including installation costs, but not finance charges. An order from DHCR is not required before the owner may collect this type of rent increase. However, for rent controlled housing accommodations before an owner may collect this increase, the owner must file an “Owner’s Notice of a Rent Increase Based on Increased Services/New Furnishings/Equipment/Painting; and Tenant’s Statement of Consent” (DHCR Form RN-79b) with DHCR.

If any apartment is vacant, the owner does not have to get either prior approval by DHCR or written consent of a tenant to collect the 1/40th increase.

The owner should keep all bills for improved services, new equipment, or improvements to prove their cost in the event a tenant challenges the rent increase.

For more information or assistance, call the DHCR Rent InfoLine, or visit your Borough or County Rent Office.

Central
92-31 Union Hall Street
4th Floor
Jamaica, NY 11433
(718)739-6400

Brooklyn
55 Hanson Place
7th Floor
Brooklyn, NY 11217

Upper Manhattan
163 West 125th Street
5th Floor
New York, NY 10027
North side of 110 St. and above

Nassau County
50 Clinton Street
6th Floor
Hempstead, NY 11550

Westchester County
55 Church Street
White Plain, NY 10601

Lower Manhattan
25 Beaver Street 5th Floor
New York, NY10004
South side of 110 St. and below

Bronx
1 Fordam Plaza
2nd Floor
Bronx, NY 10458

Staten Island
60 Bay Street
7th Floor
Staten Island, NY 10301

Rockland County
94-96 North Main Street
Spring Valley, NY 10977