When a landlord makes an improvement to the building, they may want more rent so that they can make up for their expenses. They can raise rent for “major capital improvements,” but not all work on the building can fall under this definition. A New York City rent dispute lawyer can tell you more about MCIs and when an increase in rent is warranted.
Major capital improvements are significant projects that help increase the value of the building and its apartments. These are not repairs. These are more elaborate projects that represent a large investment of time and money on behalf of the landlord. These major capital improvements are meant to benefit all tenants in some way, so upgrading one apartment won’t qualify.
Fixing a leak is not a major improvement and neither is repairing a hole in the roof. Cosmetic improvements, like repainting, are also not something that can be used to justify raising the rent. These kinds of tasks are a part of the landlord’s normal responsibility. Redoing the entire plumbing infrastructure of the building or replacing the roof with a new one would count though. This represents a landlord going beyond their normal duty and finding a way to make the building a better place to live.
These major capital improvements are often a big investment on the part of the landlord, so it’s understandable that they would want to recoup what they spent. They can raise the rent, but they have to follow the rules and make sure that they have filed the proper paperwork with the Division of Housing and Community Renewal.
There are some limitations though. In a rent-stabilized or rent-controlled apartment, rent can only be increased by two percent due to any major capital improvements made. The landlord is meant to make their money back over time, not right away.
Landlords also have to notify tenants that they have made an improvement and plan to increase rent as a result. As a tenant, you have 60 days to answer your landlord’s letter and make your thoughts on this topic clear. You and other tenants can challenge their plans by arguing that:
If you have questions about major capital improvements or doubts about whether your landlord’s recent projects actually qualify as MCIs, contact Robert Rosenblatt & Associates. We can only offer advice once we hear about your specific situation, so reach out and schedule a consultation today.
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