Key Takeaways
- RPL §226-c(2)(f) restricts evictions based on rent increases — you cannot evict a tenant for non-payment if the increase was above the “unreasonable rent increase” threshold, which is currently 10% above the prior year’s legal rent or the CPI adjustment, whichever is lower.
- Good cause eviction applies statewide in New York — this is not limited to rent-stabilized units. All residential tenancies (except owner-occupied 1-2 family homes and specific exemptions) must comply with RPL §226-c.
- Violating good cause protections exposes you to penalties up to treble damages — tenants can sue for actual damages, attorney’s fees, and up to three times the overcharge amount under RPL §223.
- You must provide written notice of any rent increase 30 days in advance — failure to provide proper notice invalidates the increase and can trigger tenant defenses in eviction proceedings.
- The 10% threshold resets annually on lease renewal dates — you must calculate the increase against the tenant’s legal rent in the prior 12-month period, not your initial lease amount.
- Document all rent history and lease terms meticulously — the burden of proving a rent increase was “reasonable” falls on you in court; inconsistent records will destroy your credibility.
What Is Good Cause Eviction Under RPL §226-c?
New York’s good cause eviction statute, codified at Real Property Law §226-c, is among the nation’s strongest tenant protections. Enacted in 2024 and effective June 18, 2024, this law fundamentally restricts when and why landlords can evict tenants. It applies statewide to all residential tenancies except owner-occupied buildings with 1-2 units where the owner lives on the premises, and certain other narrow exemptions.
The statute creates two distinct pathways for lawful eviction: (1) cause-based eviction (nonpayment of rent, lease violations, etc.) and (2) no-cause eviction with proper notice (only permitted at lease end, with 30, 60, or 90 days’ notice depending on tenancy length). However, §226-c(2)(f) carves out a critical exception: you cannot evict for nonpayment if the nonpayment stems from an unreasonable rent increase.
This provision—the unreasonable rent increase threshold—is where self-managing landlords face the highest compliance risk. Understanding exactly what “unreasonable” means, how to calculate it, and what documentation you need is essential to avoid costly litigation.
Defining “Unreasonable Rent Increase” Under §226-c(2)(f)
The statute does not define “unreasonable” in a vacuum. Instead, it cross-references the rent stabilization framework and CPI adjustments. Specifically, a rent increase is presumed unreasonable if it exceeds 10% above the tenant’s legal rent in the prior 12 months, or the percentage increase in the Consumer Price Index (CPI) for the region, whichever is lower.
As of July 2026, the most recent CPI adjustment for the Northeast (which includes New York) was published by the U.S. Bureau of Labor Statistics. Landlords must compare their proposed increase against both thresholds and apply the lower figure as the legal cap. If your increase exceeds that cap, it is presumed unreasonable—and tenants can raise this as an affirmative defense in an eviction action for nonpayment.
Critical distinction: This is not rent stabilization for all buildings. Even market-rate buildings outside rent-stabilized zones must comply. The statute treats the 10%/CPI threshold as a statewide floor for all tenancies.
The Calculation: A Practical Example
Assume you have a market-rate tenant in Brooklyn whose current legal rent is $2,000 per month (base rent, no utilities). The tenant’s lease renews on July 1, 2026. Current Northeast CPI is 3.2% (hypothetical). You propose a $300 increase to $2,300.
Step 1: Calculate 10% of prior legal rent: $2,000 × 0.10 = $200
Step 2: Calculate CPI adjustment: $2,000 × 0.032 = $64
Step 3: Apply the lower threshold: $64 (CPI is lower than 10%)
Result: Your $300 increase is $236 above the legal threshold. The tenant can refuse the increase, remain in the unit at $2,000, and if you pursue eviction for nonpayment of the $2,300, the tenant successfully raises §226-c(2)(f) as a complete defense. You cannot evict.
The tenant would owe only $2,000 per month—the legal rent. Your only remedy is to non-renew the lease at the end of the term (if no other basis for eviction exists) and provide proper notice.
Notice Requirements for Rent Increases Under RPL §226-b and §226-c
Before a rent increase can be enforced—and before you can sue for nonpayment based on that increase—you must comply with notice-of-increase procedures.
Minimum Notice Period
RPL §226-b(1) requires at least 30 days’ written notice before a rent increase takes effect. The notice must:
- Be in writing (email may satisfy this if the lease permits electronic delivery)
- Clearly state the current legal rent and the new proposed rent
- State the effective date of the increase
- Include the tenant’s right to request a detailed lease history and all prior rent amounts (if any)
- Be hand-delivered, mailed, or sent via email (depending on the lease terms)
If you fail to provide 30 days’ notice, the increase is void. The tenant is entitled to pay the old rent, and you cannot pursue an eviction for nonpayment of the new (illegal) increase.
Content Requirements for the Notice
New York courts have held that rent increase notices must be sufficiently detailed for a reasonable tenant to understand their legal obligation. Vague notices (“rent will increase”) are unenforceable. Your notice should state:
| Required Element | Format/Content | Example |
| Current Legal Rent | Dollar amount (base + utilities if any) | $2,000/month (base rent) |
| New Proposed Rent | Dollar amount (base + utilities if any) | $2,064/month (base rent + 3.2% CPI) |
| Effective Date | Specific date at least 30 days away | Effective August 1, 2026 |
| Percentage Increase | Express percentage or calculation | 3.2% annual increase |
| Justification (if over CPI) | Reason for increase above threshold (if applicable) | Increases in building insurance and utilities (market-rate) |
Use a formal written notice template. Do not rely on verbal notice, text messages, or lease clauses that purport to allow automatic increases without specific written notice for each increase.
Penalties for Violating Good Cause Eviction Protections
The financial consequences of violating RPL §226-c are severe. Tenants can pursue civil actions against landlords under RPL §223(c), which provides remedies for illegal rent increases and evictions not supported by good cause.
Damages Available to Tenants
- Actual damages: All overcharged rent paid by the tenant (including interest)
- Attorney’s fees and costs: The tenant can recover all legal fees if they prevail
- Treble damages: Up to three times the amount of any overcharge (if the overcharge was willful or reckless)
- Civil penalties: $1,000–$10,000 per violation (depending on severity and intent)
Additionally, if you pursue an eviction for nonpayment based on an unreasonable rent increase, the tenant can file a counterclaim in the eviction proceeding. The court will dismiss the eviction and may award damages to the tenant without requiring a separate lawsuit.
Regulatory Consequences
The New York Attorney General’s office and local housing departments have begun enforcement actions against landlords who systematically violate good cause protections. Violations can result in:
- Cease-and-desist orders
- Administrative fines ($5,000–$50,000 per violation pattern)
- Referral to criminal prosecution (in cases of repeat or egregious violations)
- Negative publicity and reputational damage in tenant review forums
One 2025 enforcement action by the NY AG resulted in a $500,000 settlement against a small multi-unit owner who had evicted tenants for refusing unreasonable increases above the §226-c threshold.
Exemptions and Narrow Exceptions
RPL §226-c does not apply uniformly to all residential tenancies. Key exemptions include:
Owner-Occupied 1-2 Family Homes
If you own a building with 1-2 rental units and you live on the premises, §226-c does not apply. However, if you live off-premises or own a 3+ unit building, the law applies to all units.
Luxury Deregulated Units
Rent-stabilized apartments that have been deregulated (because rent exceeded $2,700/month as of 2019, with inflation adjustments) are subject to §226-c but may have different thresholds if they were previously covered by the RGB (Rent Guidelines Board). Consult a specialist if you own deregulated stock.
New Construction
Units that have never been occupied are subject to §226-c upon first occupancy. You cannot impose unlimited rent increases on the first tenant under the guise of “new construction.” The good cause framework applies immediately.
Non-Renewal vs. Eviction
§226-c does not prevent you from non-renewing a lease at its end date. However, you must provide the proper notice period (30, 60, or 90 days depending on tenancy length per RPL §226-c(3)) and cannot cite an unreasonable rent increase as the reason in writing. If a tenant can show the non-renewal was pretext for avoiding the good cause framework (e.g., you immediately re-rent the unit at the illegal higher amount), courts may find it a retaliatory non-renewal.
Step-by-Step Compliance Checklist for Rent Increases
Use this checklist every time you prepare to increase a tenant’s rent:
- Obtain current CPI: Check the U.S. Bureau of Labor Statistics website for the most recent Northeast CPI. As of July 2026, verify the current rate.
- Calculate 10% threshold: Multiply tenant’s current legal rent by 0.10. Document this calculation.
- Apply lower threshold: Compare 10% to CPI. Use the lower percentage as your legal cap.
- Determine proposed increase: Decide on your increase amount. Ensure it does not exceed the legal threshold. If you believe an increase above the threshold is justified (market-rate building with documented cost increases), consult an attorney; you will likely lose this argument.
- Draft written notice: Use a template that includes all required elements: current rent, new rent, effective date, percentage increase. Date and sign the notice.
- Deliver notice 30+ days in advance: Hand-deliver, mail, or email per lease terms. Obtain proof of delivery (signed receipt, certified mail stub, email read receipt).
- File notice in your records: Keep a copy in the tenant file with the date of delivery documented.
- Confirm tenant’s payment: If tenant pays the new rent amount on the effective date, issue a receipt showing the new legal rent. Do not accept partial payments without documenting the deficit.
- Document ongoing payments: Each lease renewal, repeat steps 1–7. Do not assume tenants will accept repeated increases without notice.
- Preserve lease history: Maintain a complete record of all prior rents for the tenant’s entire occupancy. If a dispute arises, you must prove the prior year’s “legal rent” to calculate the next increase.
Common Compliance Mistakes Self-Managing Landlords Make
Mistake 1: Conflating Market-Rate Increases with CPI
Many self-managing landlords believe they can raise rent to “market rate” at will. This is false. Even in a competitive market, RPL §226-c imposes the 10%/CPI cap. If market rent is $2,500 but CPI allows only a $64 increase on your current $2,000 rent, the tenant can stay at $2,064 and you cannot evict for nonpayment of the difference.
Mistake 2: Failing to Provide Timely Written Notice
Verbal notice, text messages, or notices provided fewer than 30 days before the increase date are all unenforceable. Tenants can ignore the increase, pay the old rent, and you have no legal basis to evict. Always use written notice with proof of delivery.
Mistake 3: Losing Lease History Documentation
If you cannot prove what the tenant paid in prior years, you cannot defend your rent increase calculation in court. Tenants’ attorneys will argue that your “prior year’s legal rent” is inaccurate. Maintain a ledger (digital or paper) of all payments, lease amendments, and any prior increases.
Mistake 4: Retaliatory Non-Renewal After Tenant Raises §226-c Defense
If a tenant refuses an unreasonable increase and you respond by non-renewing the lease, you may face a retaliatory conduct lawsuit under RPL §223-f. Courts will examine whether the non-renewal was prompted by the tenant’s exercise of statutory rights. Non-renewal shortly after a tenant invokes §226-c is strong evidence of retaliation.
Mistake 5: Misclassifying Owner-Occupied Properties
Some landlords incorrectly believe they are exempt from §226-c if they own a 2-unit building. Reread the exemption: it applies only if you live on the premises. If you own a 2-unit building and live elsewhere, §226-c applies to both units.
Using Technology to Stay Compliant
Self-managing landlords with multiple units face exponential compliance risk if they rely on spreadsheets, email, or paper files to track rent increases, CPI thresholds, and notice deadlines. Errors in calculation or documentation are nearly impossible to defend in court.
LeaseBase’s compliance tools automatically calculate the legal rent increase ceiling for each tenant based on current CPI, compare it to your proposed increase, and flag violations before you send a notice. The platform maintains an immutable lease history for each tenant, generates compliant rent increase notices with delivery tracking, and alerts you to retaliation risks if you attempt a non-renewal shortly after a tenant raises §226-c defenses.
For portfolio-level compliance monitoring, portfolio management tools aggregate rent data across all your units and highlight properties where increases are trending above the legal threshold or where notice delivery is incomplete.
FAQ: Good Cause Eviction & Unreasonable Rent Increases
Q1: Can I evict a tenant for refusing to pay an unreasonable rent increase?
A: No. If you serve a Notice to Cure or Quit based on nonpayment, and the nonpayment is because the tenant refused an increase that exceeds the §226-c threshold, the tenant’s defense will prevail in court. The eviction will be dismissed. You cannot evict for nonpayment of rent that was never lawfully increased. Your only remedy is to non-renew the lease at the end of the term (subject to proper notice and anti-retaliation rules).
Q2: Does the 10% cap apply to rent-stabilized apartments?
A: No and yes. Rent-stabilized apartments have their own annual increase limits set by the RGB (Rent Guidelines Board), which currently range from 1–3% for most leases as of 2026. Those limits supersede the §226-c threshold if they are lower. However, §226-c still provides a floor: you cannot increase a stabilized unit by more than the RGB allowance, and you must provide 30 days’ written notice. If the RGB allows a 2.5% increase and you propose 5%, you violate both rent stabilization law and §226-c.
Q3: What if the tenant’s lease is silent on rent increases?
A: The absence of a rent-increase clause in the lease does not prevent you from increasing rent upon renewal. However, you must still comply with §226-c: provide 30 days’ written notice, limit the increase to 10% or CPI (whichever is lower), and calculate against the prior year’s legal rent. Courts treat renewal rent increases as subject to the same rules as mid-term increases.
Q4: If the tenant pays a higher rent for one month and then stops, can I evict?
A: This is a gray area that depends on whether the tenant made a one-time payment or acknowledged the new rent as lawful. Generally, a single payment does not constitute acceptance of an unreasonable increase if the tenant immediately disputes it or pays only under protest (“paid under duress”). However, if the tenant pays the higher amount for 2–3 months without objection, a court may find the tenant accepted the increase. If you receive a higher payment and later the tenant claims it was unreasonable, document the payment carefully and do not assume acceptance. When in doubt, refund the overage and provide a corrected notice at the legal threshold.
Q5: What is the deadline to provide notice for a lease renewal 30 days before the lease expires?
A: If a lease expires on August 31, 2026, you must provide a rent increase notice by August 1, 2026, at the latest (30 days before). If you serve notice on August 2, the increase cannot be effective until September 1 at the earliest (still 30 days from service). Many leases allow automatic renewal unless a party provides notice; in those cases, a rent increase notice is your way of proposing renewal terms, and the tenant has the right to refuse the increase and treat the lease as non-renewed. Follow your lease language and provide notice within the timeline required.
Documentation and Record-Keeping Best Practices
Tenant disputes over rent increases often turn on documentation. Here is what you should retain:
- Lease and all amendments: Scanned copies of original lease and any modifications, signed by both parties.
- Rent history ledger: Month-by-month record of rent payments, increases, effective dates, and any periods of rent abatement or credits.
- Rent increase notices: Original notices sent to tenant, with date of service and method (hand-delivery receipt, mail stub, email proof).
- CPI documentation: Screenshot or printout of the CPI rate used to calculate the increase, dated and sourced.
- Calculation worksheet: Document showing your math: prior legal rent × CPI% = legal ceiling. This is your defense if the tenant argues you miscalculated.
- Tenant communications: Emails, texts, or letters in which the tenant acknowledged or disputed the increase.
- Payment records: Bank deposits, cancelled checks, or online payment confirmations showing what the tenant paid and when.
Store these documents securely and separately by tenant. Cloud-based file systems (Google Drive, Dropbox, or lease management platforms) are preferable to paper files because they are searchable, time-stamped, and backed up automatically.
Interaction with Other Tenant Protections
RPL §226-c does not exist in isolation. It interacts with other New York tenant protections:
Retaliation (RPL §223-f)
If a tenant asserts §226-c rights (refusing an unreasonable increase, filing a complaint with the AG), you cannot retaliate by non-renewing, reducing services, or increasing harassment. A non-renewal within 6 months of the tenant’s assertion of rights is presumed retaliatory unless you have clear, documented non-retaliatory cause.
Habitability (RPL §235-b and §27-2005)
You cannot use a rent increase to offset the cost of repairs you are legally required to make to maintain habitability. If you increase rent and the unit has code violations, the tenant can raise habitability as an offset and claim the increase was retaliatory.
Harassment (Executive Law §510)
Aggressive rent increases combined with other conduct (reducing maintenance, entering without notice, threatening eviction) may constitute harassment and trigger criminal liability and statutory damages of $1,000 per day.
Conclusion: Compliance Is Non-Negotiable
RPL §226-c represents a fundamental shift in New York landlord-tenant law. The days of unilateral, unlimited rent increases are over. Self-managing landlords who ignore the 10%/CPI threshold, fail to provide proper notice, or retaliate against tenants who invoke good cause protections face six-figure liability, treble damages, attorney’s fees, and potential criminal exposure.
The path forward is straightforward: (1) calculate the legal ceiling annually using current CPI, (2) serve timely, detailed written notice, (3) document everything, and (4) respect tenant defenses when they arise. Compliance is not a barrier—it is your protection against costly litigation and regulatory action.
For self-managing landlords with 10+ units, the margin for error shrinks proportionally. Compliance tools that automate CPI calculations, generate notices, and flag violations are not luxuries—they are essentials. LeaseBase’s platform consolidates lease management, rent increase compliance, and notice generation in one place, so you can scale without sacrificing adherence to statute.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney licensed in New York for guidance specific to your situation. Rent increase laws, CPI adjustments, and good cause eviction provisions change annually. Verify current thresholds with the U.S. Bureau of Labor Statistics and the New York Attorney General’s office before implementing any increase.