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  1. #1
    Join Date
    Dec 2019
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    1

    Default How to Increase Rent for Renovations

    My question is for rent stabilized units in NYC:

    Iíve lived in the same unit for 30 years. Itís rent stabilized, has largely been untouched for 30 years, and changed hands 3 times. I spoke to my currently landlord about modernizing the apartment. We came to an agreement where he would modernize my unit for rent increase but had to figure out a way to implement it due to the law law passed this past June.

    Is there any legal way for our agreement to work out as Iíd really want the unit to be modernized.

  2. #2
    Join Date
    Jul 2018
    Posts
    2,336

    Default Re: How to Increase Rent for Renovations

    Please cite or link to the particular law with which you are concerned.

  3. #3
    Join Date
    Nov 2013
    Posts
    6,887

    Default Re: How to Increase Rent for Renovations

    The agreement can work out because it is governed by the NYC Rent Guidelines Board.

    A rent stabilized apartment in NYC can be renovated at the landlord's expense if the tenant agrees (in writing) to a rent increase. That increase can be 1/40th or 1/60th of the cost of the renovation per annum depending on how the landlord is depreciating the capital improvement.

    So if you wanted a new refrigerator that cost $600.00 you would pay about $1.25 increase per month. If the renovations cost $10,000, you would pay about $21,00 per month.

    You should contact the NYC Rent Guidelines Board for more information when you know what the improvements cost and what your landlord is proposing as a rent increase.

  4. #4
    Join Date
    Mar 2013
    Posts
    17,917

    Default Re: How to Increase Rent for Renovations

    Quote Quoting Shankedup
    View Post

    Is there any legal way for our agreement to work out as I’d really want the unit to be modernized.
    Here is the part of the Rent Stabilization Code that addresses rent adjustments for capital improvements.

    https://govt.westlaw.com/nycrr/Docum...efault)&bhcp=1

    As you can see, it's rather complicated and the building owner must apply, and get approval, for any increase in rent.

    Any "agreement" that you and the owner make could be meaningless in light of the approval criteria so make sure he finds out what his limitations are. I'm sure he will want to recover his costs over a very short period of time when the code may require otherwise.

    Using Budwad's example of $10,000 in capital improvements resulting in a $20 per month allowable increase in rent isn't likely to sit well with the building owner who will have to wait 41 years to recover his investment.

    You might have to pay for your own modernization if you want it badly enough. Or move to a more modern apartment which I know that NYers are reluctant to do because of substantial increases in rent.

    My sister in Manhattan has paid for several improvements in the 20 some years she has lived in her apartment.

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