In
general, the landlord
can increase the rent by the following method:
A provision in the Rent Regulation Reform Act of 1997 allows owners of rent stabilized units to raise by a certain percentage the legal rent of a vacant unit. For an incoming tenant who opts for a twoyear lease, the vacancy allowance is 20%. For an incoming tent who opts for a oneyear lease, the vacancy allowance is 20% minus the percentage difference between the Rent Guidelines Board's (RGB’s) thencurrent guidelines for a twoyear and a oneyear lease.
However, with passage of the Rent Act of 2015, if a vacating tenant was paying a preferential rent, the vacancy lease rent increase that can be applied to the vacating tenant’s legal rent will be limited to 5% if the last vacancy lease commenced less than two years ago, 10% if less than three years ago, 15% if less than four years ago and 20% if four or more years ago. For more information on how the Rent Act of 2015 changes procedures for determining the vacancy lease rent, please contact the NYS Division of Housing and Community Renewal (DHCR), the agency that regulates rent stabilized apartments in NYC.
The RGB is currently unable to provide a vacancy lease calculator for any vacancy lease commencing on or after June 15, 2015. Contact DHCR for assistance in calculating vacancy leases.
For
vacancy leases commencing between Oct. 1, 2014 and June 14, 2015:
 If a tenant chooses a oneyear lease: 18.25% [The vacancy increase for oneyear leases is determined each year by taking 20% minus the difference between one and twoyear renewal leases. Under the 20142015 rent guidelines period, the difference is 1.75%, so 20%  1.75% = 18.25%.]
 If a tenant chooses a twoyear lease: 20%
 To
see how much the rent can be raised for a particular apartment for vacancy
leases going into effect during this period, try the 201415
RGB Vacancy Lease Calculator. You plug in the numbers and the calculator
figures out how much the rent can be raised over the amount paid by the
previous tenant.
For earlier vacancy leases, see bottom of page.
In
addition, the following also applies:
• An
additional 0.6% per year if the previous tenant was in the apartment 8 or
more years;
• Higher
rates for units previously renting for $500 or less;
• Rent increases permitted under a vacancy may not be taken more than once in any calendar year (for vacancy leases with effective dates on or after June 24, 2011);
• The permanent increase in the legal regulated rent for the affected housing accommodation shall be 1/40th, in the case of a building with thirtyfive or fewer housing accommodations, or 1/60th, in the case of a building with more than 35 housing accommodations where such permanent increase takes effect on or after September 24, 2011, of the total cost incurred by the landlord in providing such modification or increase in dwelling space, services, furniture, furnishings or equipment, including the cost of installation, but excluding finance charges.
Additional
information on vacancy leases may also be found in DHCR
Fact Sheet #5.
Vacancy
calculation steps (for vacancy leases with effective dates between Oct. 1, 2014 and June 14, 2015):
Choose applicable column below to determine vacancy increase
NOTE: These steps exclude any qualifying
apartment improvements:
If:
Previous Vacancy
occurred in last
8 years
And:
Most recent legal rent
was over $500


If:
Previous Vacancy
occurred in last
8 years
And:
Most recent legal rent
was $500 or less


If:
Previous Vacancy
occurred over
8 years ago
And:
Most recent legal rent
was $500 or less


If:
Previous Vacancy
occurred over
8 years ago
And:
Most recent legal rent
was over $500

FOR A TWOYEAR VACANCY LEASE:
(1) If
the vacancy lease is for a term of two years, the legal rent
can be raised 20%.
FOR A ONEYEAR VACANCY LEASE:
If
the vacancy lease is for a term of one year, the legal rent can be
raised 20% minus the difference between the RGB's one and twoyear
lease renewals: If the vacancy lease commences between October
1, 2014 and September 30, 2015, for a oneyear lease, the maximum vacancy
increase is 18.25%.


If the legal
regulated rent is less than $300,
the total increase is calculated in
the column to the left plus $100
per month.
If the legal
regulated rent is at least $300 and
no more than $500, the total increase
is as outlined in
the column to the left OR $100, whichever
is greater 

Multiply
the number of years since the last vacancy (or since the unit was first
stabilized) times 0.6%. Add this figure to the figure calculated in
the far left column to determine the percentage increase.
THEN for
units under $300 ADD $100.
THEN for
units between $300 and $500 determine if this increase is at
least $100. If NOT, the increase is $100. 

Multiply
the number of years since the last vacancy (or since the unit was first
stabilized) times 0.6%. Add this figure to the figure calculated in
the far left column to determine the percentage increase.

Vacancy
calculation examples (for vacancy leases with effective dates between Oct. 1, 2014 and June 14, 2015):
Example 1:
The existing legal rent is $900. The last vacancy occurred 4 years ago.
The new tenant chooses a oneyear lease effective October 1, 2014.
The applicable
column in the table above is the first column above,
since there has been a vacancy in the last eight years and the rent is over
$500. Since the tenant wants a oneyear lease the correct percentage increase
is 20% MINUS the difference between the twoyear lease renewal guideline
and the oneyear lease renewal guideline or 20%  1.75% =
18.25%. Thus, the maximum rent which can be charged is 1.1825 x $900, or $1,064.25.
Example 2:
The existing legal rent is $480. The last vacancy was 11 years ago. The
tenant chooses a oneyear lease effective February 1, 2015.
The applicable
column in the table above is the third column above,
since there hasn't been a vacancy in the last eight years and the rent is
under $500. First, compute the percentage increase. Since the tenant wants
a oneyear lease, start with 18.25%. Then, add the vacancy portion (11 x 0.6%,
or 6.6%) for a total of 24.85%. Multiply 1.2485 x $480, which equals
$599.28.
Example 3:
The existing legal rent is $950. The last vacancy was 14 years ago. The
new tenant chooses a twoyear lease effective April 1, 2015.
The applicable
column in the table above is the fourth column above,
since there hasn't been a vacancy in the last eight years and the rent is
over $500. Since it has been 14 years since the last vacancy, you can add
14 x 0.6%, or 8.4% to the increase. Then, calculate the vacancy allowance as
in column one: A twoyear guideline allowance is 20%. Add the two: 8.4% longevity
allowance plus 20% vacancy allowance for a total increase of 28.4%. Thus, the
increase is calculated by multiplying $950 x 1.284, totaling the new maximum
rent of $1,219.80.
Example 4:
The existing legal rent is $1,300. The last vacancy was 2 years ago. The
new tenant chooses a oneyear lease effective May 1, 2015.
The applicable
column in the table above is the first column above,
since there has been a vacancy in the last eight years and the rent is over
$500. Since the tenant wants a oneyear lease the increase is 18.25%. Thus, the maximum rent which can be charged is 1.1825 x $1,300, or $1,537.25.
For assistance, please contact the NYS Division of Housing and Community Renewal (DHCR), the agency that regulates rent stabilized apartments in NYC, or visit their website.
Earlier vacancy lease calculators:
For
vacancy leases commencing between Oct. 1, 2013 and Sept. 30, 2014:
 If a tenant chooses a oneyear lease: 16.25% [The vacancy increase for oneyear leases is determined each year by taking 20% minus the difference between one and twoyear renewal leases. Under the 20132014 rent guidelines period, the difference is 3.75%, so 20%  3.75% = 16.25%.]
 If a tenant chooses a twoyear lease: 20%
 To
see how much the rent can be raised for a particular apartment for vacancy
leases going into effect during this period, try the 201314
RGB Vacancy Lease Calculator. You plug in the numbers and the calculator
figures out how much the rent can be raised over the amount paid by the
previous tenant.
For
vacancy leases commencing between Oct. 1, 2012 and Sept. 30, 2013:
 If a tenant chooses a oneyear lease: 18% [The vacancy increase for oneyear leases is determined each year by taking 20% minus the difference between one and twoyear RENEWAL leases. Under the 20122013 rent guidelines period, the difference is 2%, so 20%  2% = 18%.]
 If a tenant chooses a twoyear lease: 20%
 To
see how much the rent can be raised for a particular apartment for vacancy
leases going into effect during this period, try the 201213
RGB Vacancy Lease Calculator. You plug in the numbers and the calculator
figures out how much the rent can be raised over the amount paid by the
previous tenant.
For
vacancy leases commencing between Oct. 1, 2011 and Sept. 30, 2012:
 If a tenant chooses a oneyear lease: 16.5% [The vacancy increase for oneyear leases is determined each year by taking 20% minus the difference between one and twoyear RENEWAL leases. Under the 20112012 rent guidelines period, the difference is 3.5%, so 20%  3.5% = 16.5%.]
 If a tenant chooses a twoyear lease: 20%
 To
see how much the rent can be raised for a particular apartment for vacancy
leases going into effect during this period, try the 201112
RGB Vacancy Lease Calculator. You plug in the numbers and the calculator
figures out how much the rent can be raised over the amount paid by the
previous tenant.
For
vacancy leases commencing between Oct. 1, 2010 and Sept. 30, 2011:
 If a tenant chooses a oneyear lease: 17.75% [The vacancy increase for oneyear leases is determined each year by taking 20% minus the difference between one and twoyear RENEWAL leases. Under the 20102011 rent guidelines period, the difference is 2.25%, so 20%  2.25% = 17.75%.]
 If a tenant chooses a twoyear lease: 20%
 To
see how much the rent can be raised for a particular apartment for vacancy
leases going into effect during this period, try the 201011
RGB Vacancy Lease Calculator. You plug in the numbers and the calculator
figures out how much the rent can be raised over the amount paid by the
previous tenant.
For
vacancy leases commencing between Oct. 1, 2009 and Sept. 30, 2010:
 Where heat is provided or required to be provided to a dwelling unit by an owner from a central or individual system at no charge to the tenant: 20%
if the tenant chooses a twoyear lease, 17% if the tenant chooses a
oneyear lease; NOTE:
the vacancy increase for oneyear leases is determined each year by taking
20% minus the difference between one and twoyear RENEWAL leases. Under
the 20092010 rent guidelines period, the difference is 3%, so 20%  3%
= 17%. see how much the rent can be raised for a particular apartment for vacancy
leases going into effect during this period, try the 200910
RGB Vacancy Lease Calculator (for use where heat is provided or required to be provided to a dwelling unit by an owner from a central or individual system at no charge to the tenant). You plug in the numbers and the calculator
figures out how much the rent can be raised over the amount paid by the
previous tenant.
 Where heat is neither provided nor required to be provided to a dwelling unit by an owner from a central or individual system: 20%
if the tenant chooses a twoyear lease, 17.5% if the tenant chooses a
oneyear lease; NOTE:
the vacancy increase for oneyear leases is determined each year by taking
20% minus the difference between one and twoyear RENEWAL leases. Under
the 20092010 rent guidelines period, the difference is 2.5%, so 20%  2.5%
= 17.5%. To
see how much the rent can be raised for a particular apartment for vacancy
leases going into effect during this period, try the 200910
RGB Vacancy Lease Calculator (where heat is neither provided nor required to be provided to a dwelling unit by an owner from a central or individual system). You plug in the numbers and the calculator
figures out how much the rent can be raised over the amount paid by the
previous tenant.
For
vacancy leases commencing between Oct. 1, 2008 and Sept. 30, 2009: 20%
if the tenant chooses a twoyear lease, 16% if the tenant chooses a
oneyear lease; NOTE:
the vacancy increase for oneyear leases is determined each year by taking
20% minus the difference between one and twoyear RENEWAL leases. Under
the 200809 rent guidelines period, the difference is 4%, so 20%  4%
= 16%. To
see how much the rent can be raised for a particular apartment for vacancy
leases going into effect during this period, try the 200809
RGB Vacancy Lease Calculator. You plug in the numbers and the calculator
figures out how much the rent can be raised over the amount paid by the
previous tenant.
For
vacancy leases commencing between Oct. 1, 2007 and Sept. 30, 2008: 20%
if the tenant chooses a twoyear lease, 17.25% if the tenant chooses a
oneyear lease; NOTE:
the vacancy increase for oneyear leases is determined each year by taking
20% minus the difference between one and twoyear RENEWAL leases. Under
the 200708 rent guidelines period, the difference is 2.75%, so 20%  2.75%
= 17.25%. To
see how much the rent can be raised for a particular apartment for vacancy
leases going into effect during this period, try the 200708
RGB Vacancy Lease Calculator. You plug in the numbers and the calculator
figures out how much the rent can be raised over the amount paid by the
previous tenant.
For
vacancy leases commencing between Oct. 1, 2006 and Sept. 30, 2007: 20%
if the tenant chooses a twoyear lease, 17% for a oneyear lease; NOTE:
the vacancy increase for oneyear leases is determined each year by taking
20% minus the difference between one and twoyear RENEWAL leases. Under
the 200607 rent guidelines period, the difference is 3%, so 20%  3% =
17%. To see how much the rent can be raised for a particular apartment
for vacancy leases going into effect during this period, try the 200607
RGB Vacancy Lease Calculator. You plug in the numbers and the calculator
figures out how much the rent can be raised over the amount paid by the
previous tenant.
For assistance, please contact the NYS Division of Housing and Community Renewal (DHCR), the agency that regulates rent stabilized apartments in NYC, or visit their website.
Page Updated
8/13/2015