Rent Stabilization and Rent Control laws differ in a few distinct ways. It is important to understand the difference in order to protect your financial well being and get the best deal on your rental. New York City is a place that Rent Stabilized and Rent Controlled buildings are highly sought after. If you live in a Rent Stabilized or Rent Controlled building your rent does not rise with the market rates. This is incredibly attractive as rental prices have continually risen in recent years.
How is Rent Stabilization and Rent Control Different?
Rent Stabilization applies to the apartments in buildings of six or more units built between February 1, 1947 and January 1, 1974. Rent Stabilization came into law after World War II when apartment prices were rapidly increasing. Today, Rent Stabilization is still enacted in municipalities that never ended the rental housing emergency law after World War II. In Rent Stabilized units, the Rent Guidelines Board specifies percentage increases for rent annually.
Rent Control is slightly different than Rent Stabilization. Rent Control apartment units, by law, can only have the rent increased by a certain percentage every year. The unit is not subject to market price fluctuations. Also, if improvements are made to the apartment the rent can only be increase by 1/40th of the cost of improvements to the unit. To have a Rent Controlled apartment means the apartment has continuously been occupied since April 1, 1953. Rent Controlled apartments are usually passed from friend to friend so there is never a lapse in occupancy. This is a great way to have cheap rent!
Your Financial Well-Being with Rent Control and Rent Stabilization
Renting an apartment is a great way to keep your financial house in order. Your bills are fixed every month and you don’t have to worry about paying for things like the washer and dryer breaking. If you are lucky enough to find a Rent Controlled or Rent Stabilized unit, you are ahead of the game! Another way to make sure you don’t find yourself in financial turmoil is to get a renters insurance policy. You can find inexpensive renters insurance in any city you live in. For example, renters insurance NYC only costs about $15 a month! Find the right Rent Controlled or Rent Stabilized apartment and protect your possessions.
