Full question:
I bought a co-op in 1998 and another in 2002 in the same building. Last October (2008), we where advised by the co-op board that our land lease rent was going up around 115%. My wife and I were shocked. I went back and checked my closing statements. There was a disclosure stating that we had a land lease which we new about, but nothing stating anything about a rent increase on the land lease. I spoke to a number of other shareholders to ask if they were advised of the increase when they bought. All said that they were and given a disclosure showing the increase stating the land lease would go up as of January 2009 at fair appraised value plus 8%. My lawyer never advised us of this. I called my lawyer and asked him for a copy; he told me I should have a copy in my closing statement. I told him I did not and for him to send me a copy. It has been 2 weeks and I haven't received it. I have emailed him a number of times without receiving a reply. What can I do? I did a quick calculation to see what this will cause me over the time of the lease. It comes to about $700,000.
- Category: Landlord Tenant
- Date:
- State: New York
Answer:
In general, if your apartment is not subject to rent stabilization or rent control, the landlord can set any rent agreed upon, and rent increases may occur when the lease is renewed. If your apartment is under rent regulation, rent and increases are determined by law. You may challenge the regulated rent with the DHCR (Division of Housing and Community Renewal). If successful, DHCR can order a refund for overcharges plus interest and possibly impose penalties.
Landlords can seek rent increases for major capital improvements (MCI) or other lawful reasons. They must provide written receipts for rent payments made in cash or other forms, except personal checks, for which a receipt can be requested.
It's important to note that state laws do not require proposed rent increases to be included in property condition disclosures. The notice of a rent increase typically falls under contract law, depending on the agreements made.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.