Q & A – After Tenants Vacate a Stabilized Unit
By JAY ROMANO Published: December 30, 2010 in the NYTimes.com
Q What are the regulations when a New York City rent-stabilized apartment becomes vacant? What determines how much the rent can be raised, and how is it calculated?
A Lucas A. Ferrara, a Manhattan real estate lawyer, says rent increases for stabilized apartments are set by law. In calculating permissible increases for leases effective Oct. 1, 2010, through Sept. 30, 2011, he said, a landlord is entitled to a 20 percent “vacancy” increase for a new two-year lease, or a 17.75 percent increase for one year. In addition, he said, if certain improvements are made to the apartment before it is re-rented, the owner may collect a rent increase equal to one-fortieth of the cost of the improvements. Mr. Ferrara noted that if, with all allowable increases, the rent on a vacant regulated apartment reached or exceeded $2,000, the apartment would be deemed deregulated, and the landlord could charge whatever rent the market allowed.