The real estate industry has been severely affected by the COVID-19 pandemic. And, as New York City slowly begins reopening in phases, landlords and tenants alike are entering an uncertain time.
With eviction moratoriums still in place until August and late-payment fees banned, officials have been working to ease renters’ worries, while landlords continue to struggle with limited income. Meanwhile, the changes continue. A rent freeze has been approved for NYC rent-stabilized apartments.
What are the guidelines?
The Rent Guidelines Board authorized:
- A rent freeze on one-year leases
- A partial freeze for two-year leases
What can landlords do?
Unfortunately, landlords’ options are fairly limited:
- They cannot increase rent at all for one-year leases.
- They cannot increase rent in the first year for two-year leases. However, by the second year, they may increase rent by 1%.
These guidelines go into effect on October 1, 2020, and last through September 30, 2021. The goal is to assist nearly two million renters in rent-stabilized apartments across New York City.
“Renters have never faced hardship like this. They desperately need relief, and that’s why we fought for this rent freeze.”New York City Mayor, Bill De Blasio
Considering that property taxes are due July 1, this decision to freeze rent is sure to increase tension with landlords as they face yet another major setback amidst the pandemic.