Luxury decontrol. These are two words that often terrify tenants who reside in rent-stabilized apartments. With good reason too, because if your monthly rent and income exceed certain thresholds as a rent-stabilized tenant, the landlord escapes rent-regulation. When your apartment isn’t rent-regulated, your landlord has the right to charge you market rates for the unit, or can decide not to renew your lease altogether.
In 2011, changes were made to the luxury decontrol provisions of the law. Presently, if your is apartment rent-stabilized and the rent is over $2,500 a month, it can be deregulated and adjusted to market rates in certain circumstances. Specifically, if your household income exceeds $200,000 as reported on your federal income tax returns for two year in a row. The question becomes whether the total income of all tenants and co-tenants is over that amount. If so, your unit can be deregulated.
Traps for the Unwary Tenant…
While the new law raised the rent and income thresholds over what they were previously, a potential luxury decontrol dispute can still be a dangerous threat to your rent-stabilized tenancy.
For example, if you live with family members, or have roommates, their income factors into the threshold equation. That means if someone moves into your apartment, and either now or later earns an income that meets or exceeds $200,000 when added to yours, you’re at risk once your monthly rent exceeds $2,500.
If you’re facing a potential luxury decontrol problem and are in danger of losing your rent-stabilized status, or if you suspect this may be a problem for you down the road, get legal help now. A Tenants’ lawyer can review the facts of your particular situation, and develop a legal strategy that might preserve your rent-regulated status.
Tenants’ lawyer Jeff McAdams has dealt with numerous issues related to luxury decontrol in New York City, and has helped many tenants to protect their rent-stabilized rights.
Remember, a rent-stabilized apartment in New York City is a precious asset nowadays, which can almost never be replaced once it’s lost. By getting proper legal advice, you’ll be in a better position to make smart decisions and plan effectively for the future.
You can find out more about luxury decontrol issues in New York City in these tenant tips Jeff has published on his NYC Tenant Lawyer Blog:
Call Tenant Rights attorney Jeff McAdams today to learn more about your rights regarding luxury decontrol of your rent-stabilized apartment. You’ll receive a free, brief initial phone consultation with Jeff. You can reach him at 212-406-5145.
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