Many NYC renters are told that landlords can automatically add 20% to the rent when a unit becomes vacant. This is false. Under RGB Order #56, the vacancy increase is currently 0%. Here's how to spot illegal "Zombie Math" and when IAI exceptions might apply.
No. The Automatic 20% Bonus is Illegal.
Vacancy increases are now governed solely by Rent Guidelines Board Order #56, which sets the vacancy increase at 0% (same as renewal rates). However, landlords can add permanent rent increases if they perform Individual Apartment Improvements (IAIs).
🧟 The "Zombie Math" (Illegal Calculation)
The Myth: "Landlords can add 20% to the rent every time a tenant moves out."
Why It's Wrong: This "Statutory Vacancy Bonus" (RSL § 26-511(c)(5-a)) was repealed by the HSTPA in 2019.
📜 The Current Law (Order #56)
The Statute: RGB Order #56 applies to leases starting between October 1, 2024 and September 30, 2025.
The Permitted Rates:
| Lease Type | Permitted Increase |
|---|---|
| 1-Year Lease | 2.75% |
| 2-Year Lease | 5.25% |
| Vacancy Bonus | 0% (See Footnote 1 of Order #56) |
⚠️ "Renovation" Loophole (2024 Update)
While the automatic bonus is dead, the 2024 State Budget (Part FF) restored permanent increases for renovations.
Tier 1 IAI
- Cap: $30,000 in work
- Permanent rent increase: ~$166/month (1/180th)
Tier 2 IAI
- Cap: $50,000 in work (for units vacant in 2022-2024)
- Permanent rent increase: ~$320/month (1/156th)
Actionable Advice: If your vacancy rent jumped by more than 2.75%, demand the IAI Rent History. The landlord must prove they actually spent the money (at least $30,000) to justify a significant hike.
