What are the RGB rent increase limits for 2026?

For rent-stabilized leases starting between October 1, 2025, and September 30, 2026 (Order #57), the limits are 3% for 1-year renewals and 4.5% for 2-year renewals.

Does the Good Cause Eviction Law apply to rent-stabilized apartments?

No, rent-stabilized and rent-controlled units are exempt from the Good Cause Eviction Law because they already have similar or stronger protections under existing state regulations.

Can I increase the rent for a stabilized unit after making improvements?

Yes, under the Individual Apartment Improvement (IAI) rules, you can increase rent based on two tiers: Tier 1 ($30,000 cap) and Tier 2 ($50,000 cap), provided the work meets statutory requirements and is documented properly.

- Landlord Management

What is the most common mistake with preferential rents?

In Bed-Stuy and Crown Heights, many landlords have historically offered "preferential rents": a rent amount lower than the legal regulated rent: to attract tenants during market dips. Since the Housing Stability and Tenant Protection Act (HSTPA) of 2019, the rules around these rents have become a major pitfall for owners.

The law currently states that if a tenant is paying a preferential rent, that rent becomes the base for all future increases for the duration of that tenancy. You cannot "revive" the higher legal rent upon a lease renewal.

The Mistake: Many landlords still attempt to jump the rent back up to the legal maximum when the market strengthens. This is a direct violation of NYS law and can result in significant overcharge penalties (often including triple damages). If you are looking for Property Management Services in Crown Heights, ensuring your rent ledger reflects these permanent preferential rent rules is one of the first things a professional manager will audit.

How do the new 2024 IAI and MCI rules affect your 2026 budget?

Individual Apartment Improvements (IAIs) were significantly overhauled in April 2024, and those changes are now in full effect for 2026. If you are renovating a vacant unit in a stabilized building, you must adhere to the new "Tier" system:

Tier 1: A cap of $30,000 in improvements over a 15-year period. This allows for a permanent monthly rent increase of approximately $178.
Tier 2: A higher cap of $50,000 is available, but only if the apartment was vacant in 2022, 2023, and 2024, or if the prior tenant occupied the unit for 25+ years. This allows for a monthly increase of up to $347.

Landlords often make the mistake of failing to file the required IAI forms with the DHCR or failing to keep itemized receipts and photographic evidence of the work. (Without meticulous documentation, the DHCR may strip the increase during a subsequent challenge.) Similarly, Major Capital Improvements (MCIs): such as a new boiler or roof: are now capped at a 2% annual increase and will phase out after 30 years.

Is your "market-rate" unit actually subject to the Good Cause Eviction Law?

One of the most significant changes for any Property Management Company in Bed-Stuy is the 2024 Good Cause Eviction Law. In 2026, this law covers nearly all non-stabilized apartments in Brooklyn, with a few key exceptions.

If your building was built before 2009 and you own more than 10 units in New York, your "market-rate" tenants now have a right to a renewal lease unless you have a "good cause" to evict (such as non-payment or nuisance). Furthermore, any rent increase above the "Local Rent Standard": which is currently calculated as 5% plus the Consumer Price Index (CPI), or 10%, whichever is lower: is presumed to be "unreasonable."

In early 2026, the threshold for a "reasonable" increase in NYC has hovered around 8.8%. If you attempt to raise a market-rate tenant's rent by 15% without a clear justification (such as a massive spike in property taxes or insurance premiums), the tenant can challenge the increase in housing court.

Why is documentation the biggest risk for landlords in Crown Heights and Bed-Stuy?

Whether you are managing a 30-unit building or a smaller 4-unit property, the "burden of proof" in New York City almost always falls on the landlord. In 2026, the DHCR and the courts have high standards for record-keeping.

Common documentation failures include:

Missing Disclosure Notices: Every lease and renewal for a unit covered by Good Cause must include a specific notice (RPL 231-c) stating whether the unit is exempt and why.
Incomplete Rent Histories: Failing to register your stabilized units annually with the DHCR can lead to a "rent freeze," where you are legally unable to collect any increases until the registrations are corrected.
Poor Maintenance Records: Under the new laws, if you have outstanding hazardous violations (like HPD Class C violations), your ability to implement certain rent increases or pursue evictions may be restricted.

Consider the difference in scale: a 300-unit building typically has a full-time compliance officer, whereas a 30-unit building owner often handles this personally. The risk is actually higher for the 30-unit owner, as a single overcharge claim can represent a much larger percentage of their annual revenue.

Practical considerations for 2026 compliance

To avoid the most common pitfalls, landlords in Brooklyn should implement a proactive compliance calendar. This includes:

Annual DHCR Registration: Ensure all stabilized units are registered by the July 31 deadline.
Lease Audit: Review every active lease to ensure the correct Good Cause disclosure or Rent Stabilization rider is attached.
Expense Tracking: Maintain a dedicated ledger for MCIs and IAIs, including copies of all permits and cancelled checks.
Notice Windows: Set alerts for the 90–150 day window for stabilized renewals and the 30–90 day window for market-rate renewals.

How does Landlord Management (LLM) provide proactive compliance?

At Landlord Management (LLM), we understand that property owners in Crown Heights and Bed-Stuy are facing unprecedented regulatory pressure. Our approach is designed to move beyond traditional "rent collection" and into comprehensive asset protection.

As a dedicated Property Management Company in Bed-Stuy, we specialize in:

Regulatory Audits: We review your building’s history to identify units that may have been improperly deregulated or miscalculated.
Compliance Integration: We ensure that every lease renewal issued in 2026 meets the exact requirements of RGB Order #57 and the Good Cause Eviction Law.
Proactive Maintenance: By addressing HPD and DOB violations before they escalate, we protect your ability to implement legal rent increases.
Hands-on Operations: We treat your 30-unit building with the same level of professional scrutiny and administrative rigor usually reserved for institutional-grade assets.

Managing a building in Brooklyn today requires more than just knowing your tenants; it requires a deep, technical understanding of the evolving legal landscape. By avoiding these common mistakes and adopting a proactive management strategy, you can protect your investment and ensure long-term financial stability.

Next Steps for Brooklyn Landlords

If you are unsure about your building's compliance status or need help navigating a recent DHCR filing, contact our team today. We provide hands-on Property Management Services in Crown Heights and throughout Brooklyn to help you stay ahead of the curve.