Managing a NYC Rent Roll: Stabilized vs. Free-Market Leases, Renewal Notices, and DHCR Filings
10 min read · Updated 2025-01-15
How to manage a NYC rent roll: distinguishing stabilized from free-market leases, calculating allowed renewal increases, sending proper renewal notices, and staying current on DHCR filings.
NYC Rent Roll Management
What information should a NYC rent roll contain?
A comprehensive NYC rent roll should include for each unit: apartment number, tenant name(s), lease start and end dates, monthly rent (actual rent paid vs. legal registered rent for stabilized units), whether the unit is rent stabilized, DHCR-registered legal rent, any preferential rent arrangement, lease renewal status, any pending lease renewals or expirations, security deposit held, and any outstanding balances. For stabilized units, also track the annual RGB increase percentage applicable to each lease.
How do I determine if a unit is rent stabilized?
Methods to verify stabilization status: (1) Check DHCR's apartment registration history (available on DHCR's website by unit); (2) Check the building's original certificate of occupancy and age (pre-1974 buildings with 6+ units are typically stabilized unless exempt); (3) Check whether the building has or had a 421-a or J-51 abatement (these impose stabilization); (4) Review prior leases — rent-stabilized leases have specific required language, including DHCR rider. Do not rely solely on prior owner representations.
How far in advance must I send a rent stabilized lease renewal?
Rent stabilized landlords must offer lease renewals 90 to 150 days before the lease expiration date. The tenant then has 60 days to return the signed renewal. The renewal must be at the RGB-allowed increase. Failure to timely offer a renewal lease is a serious violation — if the landlord fails to offer a renewal, the tenant can treat the existing lease as automatically renewed on the same terms. This can also affect the landlord's ability to collect RGB increases.
What must a rent stabilized lease renewal contain?
A rent stabilized renewal must: (1) Be on the approved DHCR lease form (or contain all required provisions); (2) Offer both one-year and two-year renewal options at the current RGB-approved rates; (3) Include the DHCR Tenant's Rights rider; (4) Correctly state the current legal regulated rent; (5) Be signed by all persons listed on the current lease as tenants. Errors in the renewal form — especially incorrect base rent — can create legal problems for the landlord.
What is the free-market lease renewal process?
For free-market (non-stabilized) apartments, there is no mandated form, advance notice period, or limitation on rent increases. The landlord can offer a renewal at any rent, on any term, or not renew at all (subject to Good Cause Eviction law if applicable). Best practice is to contact the tenant 60-90 days before lease expiration with a renewal offer. For month-to-month tenancies, give 30-day written notice to change rent terms.
What is the NYC Good Cause Eviction law and how does it affect free-market tenants?
The NYC Good Cause Eviction law (enacted as part of a 2024 state housing legislation package) significantly expands tenant protections for free-market tenants. Under the law, landlords who do not renew a lease must have a qualifying "good cause" — which excludes a desire to raise rent substantially beyond a specified cap. The rent increase cap is tied to the local Consumer Price Index plus a percentage. The law applies broadly but has various exemptions (recently constructed buildings below a certain size, owner-occupied small buildings). Check with an NYC housing attorney to understand which of your units are covered.
What DHCR filings must I make annually for stabilized units?
Annual filings include: (1) Annual Apartment Registration (Form RR-2A) by July 31 — reporting rent, tenant, and lease information for each stabilized unit; (2) Annual Building Registration (Form RR-2) by July 31. If you are applying for an MCI or IAI increase, additional filings are required as those proceedings progress. DHCR also must be notified of specific events like apartment vacancy or regulatory status changes.
How should I handle a tenant who is month-to-month?
Month-to-month tenants are holdover tenants whose original lease expired and who continue to pay rent without a new lease. For stabilized tenants, the landlord must continue offering renewal leases and cannot simply let the tenancy drift into month-to-month as a strategy to avoid renewal obligations. For free-market tenants (subject to Good Cause Eviction protections), continuing to accept rent from a holdover creates an implied month-to-month tenancy. Have a clear policy and keep track of all lease expiration dates.