Q: I live in a rent-stabilized apartment in Manhattan and my two-year lease expires May 31. I was offered the option of a one-year lease extension with a 3 percent increase or two years with a 4.5 percent increase. Mayor Mamdani has promised a rent freeze for rent-stabilized units. So should I do the one-year lease in anticipation of a stop next year? I’m also thinking about inflation, which seems to be falling, so next year’s rate hikes could be more favorable. Or should I just take the two years at 4.5 percent like a bird?
A: Mayor Mamdani has promised a rent freeze for rent-stabilized tenants and intends to make appointments to the Rent Guidelines Board to implement this vision. Will this actually happen? And if so, will it arrive before you have to sign your 2027 lease? That’s hard to say.
The RGB, which votes annually on the amount of rent increases for these units, most recently set an increase of 3 percent for one-year leases starting between October 1, 2025 and September 30, 2026, and 4.5 percent for two-year leases in the same time frame. Which option is better for you depends in part on your risk tolerance and whether a potential money saving is worth a year of uncertainty.
We put your question to four attorneys who handle landlord-tenant issues, and all said they would lean toward a one-year extension with a 3 percent increase, with the hope that the second year increase would be less than 1.5 percent.
“In general, entering into a one-year lease gives the tenant flexibility if the mayor is successful in obtaining a freeze next year,” said Jennifer Rozen, managing attorney at Rozen Law Group in Manhattan.
It is important to note that while Mr Mamdani wants to freeze rent, it is ultimately up to the nine-member RGB, which reviews various economic data and takes into account input from landlords, tenants and other stakeholders. The mayor will have the power to shape the board, but he has not announced any appointments.
“That means there is no guarantee of a rent freeze even if the mayor appoints a replacement for the RGB in the near future,” said Jeremiah Schlotman, director of housing litigation at Legal Services NYC.
Even if there is no freeze, there could be an agreement to raise rents below 1.5 percent in a year, or a middle option, such as a rent freeze for a one-year extension and a capped RGB increase of perhaps 1 percent for a two-year extension, Mr. Schlotman said.