Commercial Lease Guide: New York 2026

Sawai Gyoseishoshi Office • 2026
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Chapter 1. Overview & Statutory Framework

1-1. New York Has the Most Tenant-Protective Regime in the US

New York State, and especially New York City, has the most extensive tenant protection regime in the United States. The framework rests on three pillars:

  1. NY Real Property Law (RPL) — statewide baseline rules covering all residential tenancies
  2. Housing Stability and Tenant Protection Act of 2019 (HSTPA) — landmark reform expanding tenant rights statewide
  3. Rent Stabilization Law / Emergency Tenant Protection Act — additional protections for ~1 million rent-stabilized apartments in NYC and select NY counties

A residential landlord in New York must understand which layer applies to a given unit. All units are subject to RPL + HSTPA. Rent-stabilized units are additionally subject to RSL/ETPA + DHCR (NYS Division of Homes and Community Renewal) regulations.

Primary Source — NY Real Property Law: https://www.nysenate.gov/legislation/laws/RPP

Primary Source — HSTPA L.2019 c.36 chapter: https://www.nysenate.gov/legislation/laws/2019/36

Primary Source — DHCR (Homes and Community Renewal): https://hcr.ny.gov/

1-2. The HSTPA 2019 Reform — Top 10 Changes

The Housing Stability and Tenant Protection Act of 2019 (signed 14 June 2019) was the most significant tenant-protection reform in NY history. Key changes:

# Change Section Pre-HSTPA Post-HSTPA
1 Security deposit cap GOL §7-108(1-a) Multiple months allowed Maximum 1 month rent
2 Late fees RPL §238-a Unregulated Maximum 5% of monthly rent or USD 50, whichever less
3 Application fees RPL §238-a Unregulated Maximum USD 20 for credit/background check
4 Eviction notice (non-payment) RPAPL §711 3 days 14 days
5 Eviction notice (holdover) RPL §226-c 30 days 30/60/90 days by tenancy length
6 Sheriff warrant of eviction RPAPL §749 Immediate execution Up to 1 year stay possible
7 Rent stabilization decontrol RSL Vacancy/high-income/luxury decontrol All decontrol mechanisms repealed
8 Preferential rent RSL Could revoke at renewal Locked for tenancy
9 MCI (Major Capital Improvement) RSL Permanent rent increase Cap at 2%; expires after 30 years
10 IAI (Individual Apartment Improvement) RSL Uncapped Cap at USD 15,000 over 15 years

Primary Source — HSTPA Part III analysis (NY State Bar): https://nysba.org/nys-housing-stability-and-tenant-protection-act-of-2019-part-iii-what-lawyers-must-know/

1-3. Three Categories of NYC Apartments

Category Approximate Units Rules Applicable Rent Increase
Rent-controlled (pre-1971 continuous tenancy) ~16,000 RSL + Rent Control + DHCR Maximum Base Rent (MBR) increases set by DHCR
Rent-stabilized (pre-1974 buildings 6+ units, plus select 421-a/J-51 buildings) ~1,000,000 RSL + ETPA + DHCR Annual Rent Guidelines Board (RGB) percentages
Free market ~1,000,000+ RPL + HSTPA only Unregulated (subject to GOL §7-108 deposit cap, RPL §238-a fee caps, etc.)

For 2025–2026 (lease starting 1 Oct 2025 – 30 Sep 2026): The NYC RGB Order #57 set rent increases for rent-stabilized leases at 2.75% (1-year lease) / 5.25% (2-year lease).

Primary Source — NYC RGB Order #57: https://rentguidelinesboard.cityofnewyork.us/2025-26-apartment-loft-order-57/


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Quick Decision Matrix

Navigate your lease situation in 5 seconds.

Your Role Your Situation Priority Action Go To
Tenant Signing a new lease Review key terms before signing Chapter 3
Tenant Deposit dispute Know your rights and timelines Chapter 4
Tenant Repair or maintenance issue Understand landlord obligations Chapter 4
Landlord First rental property Registration + legal requirements Chapter 2
Landlord Ending a tenancy Notice periods and procedures Chapter 5
Landlord Rent increase Legal limits and notice requirements Chapter 4

5-second answer: Whether you're a landlord or tenant, start with Chapter 2 for the legal framework, then Chapter 3 for your specific obligations.

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