New York Lease Extension & Renewal Guide

Complete guide to NY lease renewals, rent stabilization laws, and tenant rights

Understanding New York Lease Extensions and Renewals

New York lease extensions and renewals are governed by complex state and local regulations, particularly in rent-stabilized and rent-controlled apartments. Whether you're a landlord or tenant in New York City, Westchester, or other regulated areas, understanding your rights and obligations regarding lease renewals is essential for compliance and avoiding disputes.

A lease renewal in New York creates a new lease term with updated conditions, while a lease extension simply extends the existing lease beyond its original end date. New York law, particularly the Rent Stabilization Law and Housing Stability and Tenant Protection Act of 2019 (HSTPA), establishes specific requirements for renewal notices, rent increases, and tenant protections that landlords must follow.

This comprehensive guide covers everything you need to know about New York lease extensions and renewals, including the differences between the two, rent increase limitations, renewal notice requirements, timeline considerations, legal obligations, and tenant rights under New York law.

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Lease Extension vs. Lease Renewal: Key Differences

Aspect Lease Extension Lease Renewal
Definition Continues existing lease beyond original term Creates entirely new lease agreement
Documentation Simple addendum or amendment to original lease New complete lease document
Terms & Conditions All original terms remain unchanged Terms can be modified (rent, rules, etc.)
Complexity Quick, minimal paperwork More comprehensive, requires review
Best Used When Temporary continuation, short-term need Long-term tenancy, updating lease terms
Rent Increases (Market Rate) May include rent increase via addendum New rent specified in renewed lease
Rent Stabilized Units Subject to RGB guidelines Subject to RGB guidelines
Important: For rent-stabilized apartments in NYC, both extensions and renewals must comply with Rent Guidelines Board (RGB) approved increases, regardless of which method is used.

New York Rent Stabilization and Renewal Requirements

New York's rent stabilization system affects over 900,000 apartments in New York City and thousands more in Westchester, Nassau, and Rockland counties. Understanding whether your unit is rent-stabilized is critical, as it significantly impacts renewal procedures and rent increase limits.

Rent-Stabilized Unit Criteria

  • NYC Buildings: Built before 1974 with 6+ units, or built between 1974-2013 receiving J-51 or 421-a tax benefits
  • Vacancy Decontrol Eliminated: HSTPA 2019 eliminated high-rent vacancy decontrol; once stabilized, always stabilized
  • Emergency Tenant Protection Act (ETPA): Covers Westchester, Nassau, and Rockland counties under similar protections

Rent Guidelines Board (RGB) Increases

For rent-stabilized units, landlords can only increase rent by amounts approved annually by the NYC Rent Guidelines Board:

Recent RGB Increases (2024)
  • 1-Year Lease: 2.75% increase
  • 2-Year Lease: 5.25% increase
  • Effective October 1, 2024 - September 30, 2025
Market-Rate Units
  • No statutory rent increase limits
  • Landlord can propose any increase
  • Tenant can negotiate or choose not to renew
  • Must provide proper notice (see below)

New York Lease Renewal Notice Requirements

New York law mandates specific notice periods for lease renewals, varying by unit type and rent amount:

Unit Type Notice Period Legal Requirement
Rent-Stabilized (NYC) 90-150 days before lease expires RSL § 26-511 - Landlord must offer renewal
Rent-Controlled (NYC) 90-150 days before lease expires Rent Control Regulations
Market-Rate (>5% increase) 30 days for tenancy < 1 year or month-to-month RPL § 226-c (HSTPA 2019) - Statewide
Market-Rate (>5% increase) 60 days for tenancy 1-2 years RPL § 226-c (HSTPA 2019) - Statewide
Market-Rate (>5% increase) 90 days for tenancy 2+ years RPL § 226-c (HSTPA 2019) - Statewide
Market-Rate (≤5% increase) One rental period notice (typically 30 days) Common law - Statewide
Critical HSTPA 2019 Update: For market-rate units, New York's Housing Stability and Tenant Protection Act now requires 30/60/90-day notice statewide for rent increases exceeding 5%, based on tenancy length. For rent-stabilized units, landlords must send renewal offers between 90-150 days before lease expiration.

New York Lease Renewal Timeline and Process

For Rent-Stabilized Apartments

  1. 150-90 Days Before Expiration: Landlord must send lease renewal offer with proper RGB increase, choice of 1 or 2-year term
  2. Within 60 Days of Receiving Offer: Tenant must respond accepting or rejecting renewal offer
  3. If Tenant Accepts: Tenant chooses 1 or 2-year renewal term; landlord prepares renewal lease
  4. If Tenant Rejects or Doesn't Respond: Landlord can begin eviction proceedings, but tenant may have defenses
  5. Lease Start Date: New lease begins on date specified in renewal offer (typically the day after old lease expires)
  6. Rent Increase Effective Date: New rent takes effect on renewal lease start date

For Market-Rate Apartments

  1. 90/60/30 Days Before Expiration: If proposing rent increase >5%, landlord must provide notice based on tenancy length (RPL §226-c): 30 days for <1 year, 60 days for 1-2 years, 90 days for 2+ years
  2. Tenant Consideration Period: Tenant reviews proposed rent increase and new terms
  3. Negotiation (Optional): Landlord and tenant may negotiate rent and terms
  4. Acceptance or Rejection: Tenant accepts renewal, negotiates further, or declines
  5. If Declined: Tenant must vacate by lease end date; landlord can advertise for new tenant
  6. New Lease Execution: Both parties sign renewed lease agreement before old lease expires

Costs Associated with New York Lease Renewals

Rent-Stabilized Units
  • Rent Increase: Limited to RGB-approved percentage (typically 2-5% for 1-2 year leases)
  • Renewal Fee: Prohibited - landlords cannot charge administrative fees
  • Legal Fees: Landlord responsible for preparing renewal document
  • Example: $1,500/month rent with 2.75% increase = $1,541.25 new monthly rent
Market-Rate Units
  • Rent Increase: No limit - landlord sets new rent based on market
  • Typical Increases: NYC market averages 3-8% annually
  • Renewal Fee: Typically prohibited in NYC (check lease)
  • Negotiation: Tenant can negotiate; landlord may prefer stable tenant over vacancy
Cost Savings Tip: Long-term tenants in market-rate units often negotiate smaller increases by offering 2-year commitments, highlighting good payment history, or agreeing to minor property improvements.

Legal Requirements and Tenant Rights

Tenant Rights in Lease Renewals

  • Right to Renew: Rent-stabilized tenants have automatic right to renewal
  • Choose Lease Term: Stabilized tenants choose between 1 or 2-year renewals
  • Proper Notice: Must receive timely renewal offer (90-150 days)
  • Written Offer: Renewal must be in writing with all required information
  • Reasonable Terms: Cannot include illegal clauses or waive tenant rights
  • No Retaliation: Landlord cannot refuse renewal for exercising legal rights
  • Anti-Discrimination: Cannot be refused based on protected characteristics
  • Preferential Rent Protections: HSTPA 2019 strengthened preferential rent rules
  • Good Cause Eviction: Some localities require good cause for non-renewal
  • Lease Violations: Must be substantial to justify non-renewal

Landlord Obligations

  • Timely Renewal Offer: Must offer renewal within 90-150 day window (stabilized units)
  • Proper RGB Increase: Can only charge approved percentage increase
  • Lease Registration: Must register rent-stabilized leases with DHCR
  • Provide Lease Rider: Must include required rent stabilization rider
  • No Prohibited Clauses: Cannot include waivers of warranty of habitability or other illegal terms
  • Notice Requirements: Must follow proper notice procedures for market-rate units

Frequently Asked Questions - NY Lease Renewals

For rent-stabilized apartments, landlords generally cannot refuse to renew your lease. Rent-stabilized tenants have a legal right to renewal as long as they are not in substantial violation of their lease. The limited grounds for refusing renewal include:

  • Tenant's refusal to access the apartment for necessary repairs
  • Tenant's illegal use of the apartment
  • Creation of a nuisance
  • Landlord or immediate family member needs the unit for personal occupancy (owner occupancy)
  • Landlord plans to withdraw the unit from the rental market

For market-rate apartments, landlords have more discretion. In most of New York State, landlords can choose not to renew for any non-discriminatory reason. However, New York City requires proper notice periods, and some municipalities have enacted "good cause eviction" laws requiring landlords to have valid reasons for non-renewal. Additionally, landlords cannot refuse renewal in retaliation for tenant complaints about violations or exercising legal rights.

Rent increase limits depend entirely on whether your apartment is rent-stabilized or market-rate:

Rent-Stabilized Apartments: The NYC Rent Guidelines Board sets maximum allowable increases annually. For leases renewing in 2024, the approved increases are:

  • 1-year renewal: 2.75%
  • 2-year renewal: 5.25%

These percentages apply to your current legal regulated rent. For example, if your current rent is $2,000/month, a 1-year renewal would increase it to $2,055/month.

Market-Rate Apartments: There is no statutory limit on rent increases in New York for market-rate units. Landlords can propose any increase they choose. However, practical considerations include:

  • Market conditions - increases typically range from 3-8% in NYC
  • Competition - extremely high increases may result in vacancy
  • Tenant retention costs - many landlords prefer smaller increases to avoid turnover expenses
  • Local "good cause eviction" laws - some areas limit increases to prevent constructive eviction

Remember that tenants in market-rate apartments can negotiate increases or choose not to renew if the increase is unacceptable.

The consequences of not responding to a lease renewal offer vary by apartment type:

Rent-Stabilized Apartments:

  • You have 60 days from receiving the renewal offer to respond
  • If you don't respond within 60 days, the landlord may begin eviction proceedings
  • However, courts typically give tenants an opportunity to accept the renewal even after the deadline, especially if the delay was not in bad faith
  • The landlord cannot automatically terminate your tenancy - they must go through legal eviction process
  • You may become a month-to-month tenant paying the stabilized rent until the situation is resolved

Market-Rate Apartments:

  • If you don't respond, the landlord may assume you're not renewing
  • When your lease expires, you may become a month-to-month tenant (holdover tenant)
  • The landlord can begin eviction proceedings for holdover tenancy
  • Some leases include automatic renewal clauses - check your lease carefully
  • Best practice: Always respond to renewal offers in writing, even if declining

Best Course of Action: Respond promptly to any renewal offer. If you need more time to decide, request an extension in writing. If you're experiencing hardship or need assistance, contact a tenant advocacy organization or legal aid service.

Yes, tenants can negotiate lease renewal terms, though your negotiating power varies significantly:

Rent-Stabilized Apartments:

Limited negotiation is possible:

  • Rent increase: Cannot be negotiated - must follow RGB guidelines
  • Lease term: You choose between 1 or 2-year renewal (landlord must offer both)
  • Other terms: You may negotiate minor lease provisions that don't conflict with rent stabilization protections
  • Repairs: You can negotiate having repairs completed as condition of renewal
  • Prohibited changes: Cannot waive essential rights or agree to terms that violate rent stabilization law

Market-Rate Apartments:

Substantial negotiation is often possible:

  • Rent increase: Fully negotiable - propose a lower increase or request no increase
  • Lease term: Negotiate 1, 2, or even 3+ year terms
  • Improvements: Request upgrades or repairs in exchange for accepting increase
  • Concessions: Negotiate free month(s), parking, utilities included, etc.
  • Payment terms: Discuss payment schedule, automatic rent increases, etc.

Negotiation Tips:

  • Research comparable rental rates in your neighborhood
  • Highlight your history as a reliable, low-maintenance tenant
  • Offer longer lease term in exchange for smaller increase
  • Propose specific improvements you'll handle yourself for rent concession
  • Get all agreements in writing before signing
  • Consider timing - negotiate when market conditions favor tenants

A preferential rent is when a rent-stabilized tenant pays less than the maximum legal regulated rent that the landlord is allowed to charge. This occurs when landlords voluntarily charge below the legal limit to attract tenants in competitive markets.

Before HSTPA 2019:

Landlords could raise preferential rents to the full legal regulated rent at renewal, resulting in massive rent spikes (sometimes 20-40% increases).

After HSTPA 2019 (Current Law):

  • Permanent protection: Once you receive a preferential rent, future RGB increases apply to the preferential rent, not the legal maximum
  • Example: If legal rent is $2,000 but you pay $1,500 (preferential), a 3% RGB increase applies to $1,500, making new rent $1,545, not $2,060
  • Lease requirement: Preferential rents must be specified in your lease
  • Registration: Both preferential and legal rents must be registered with DHCR
  • Exception: Landlords can only raise to legal maximum if preferential rent was time-limited AND explicitly stated in the lease

Your Rights:

  • Request rent history from DHCR to verify legal vs preferential rent
  • Challenge improper rent increases that exceed preferential rent + RGB
  • File overcharge complaints if landlord improperly raises rent
  • Consult tenant advocacy groups if you believe your preferential rent was improperly raised

The 2019 HSTPA reforms significantly strengthened preferential rent protections, making them one of the most important tenant safeguards in rent-stabilized housing.

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