Is your landlord trying to hike the rent just because you’re a new tenant?

Can My Landlord Raise the Rent 20% Just Because I’m a New Tenant?

No. The automatic 20% bonus is illegal.

Vacancy increases are now governed solely by Rent Guidelines Board Order #56, which sets the vacancy increase at 0% (same as renewal rates). However, landlords can add permanent rent increases if they perform Individual Apartment Improvements (IAIs).

The "Zombie Math" (Illegal Calculation)

• The Myth: "Landlords can add 20% to the rent every time a tenant moves out."

• Why It’s Wrong: This "Statutory Vacancy Bonus" (RSL § 26-511(c)(5-a)) was repealed by the HSTPA in 2019.

The Current Law (Order #56)

• The Statute: RGB Order #56 applies to leases starting between Oct 1, 2024, and Sept 30, 2025.

• The Permitted Rates:

  • 1-Year Lease: 2.75% increase.

  • 2-Year Lease: 5.25% increase.

  • Vacancy Bonus: 0%. (See Footnote 1 of Order #56).

⚠️ "Renovation" Loophole (2024 Update)

While the automatic bonus is dead, the 2024 State Budget (Part FF) restored permanent increases for renovations.

• Tier 1 IAI: Cap of $30,000 in work. Permanent rent increase of ~$166/month (1/180th).

• Tier 2 IAI: Cap of $50,000 in work (for units vacant in 2022-2024). Permanent rent increase of ~$320/month (1/156th).

• Actionable Advice: If your vacancy rent jumped by more than 2.75%, demand the IAI Rent History. The landlord must prove they actually spent the money (at least $30,000) to justify a significant hike.

Suspect Your Landlord is Using "Zombie Math"? If your rent jumped more than 2.75% for a 1 year lease and your landlord is claiming vague "upgrades" to justify it, you need to see the receipts. Under the new IAI rules, they must prove they spent at least $30,000 to justify a Tier 1 increase. Don't fight them alone. Schedule a consultation with us by filling out the Landlord Tenant Intake Forms. Let’s demand the proof and protect your wallet.