Westchester County Rent Stabilization Outside NYC — New York Landlord Compliance Guide (2026)

What Is the ETPA and Does It Apply to Your Westchester Property?

The Emergency Tenant Protection Act (ETPA), codified in New York’s Rent Stabilization Law (RSL), extends rent regulation beyond New York City into surrounding counties—including Westchester. Unlike popular belief, NYC’s rent control rules do not automatically govern all rental housing in the state. Instead, Westchester County has its own stabilization framework, administered by the Rent Stabilization Commission (RSC) and the New York State Division of Housing and Community Renewal (DHCR).

ETPA coverage in Westchester applies to:

• Buildings with 6 or more units
• Built or substantially rehabilitated before January 1, 1974
• Occupied as primary residences (not hotels, motels, or transient housing)
• Not exempt under specific statutory exceptions (owner-occupied 2-unit buildings, etc.)

If your Westchester property meets all four criteria, the ETPA applies. Ignorance of ETPA coverage is not a legal defense. Many self-managing landlords discover stabilization obligations only after receiving a tenant complaint or DHCR notice—by which point they may owe years of back rent adjustments plus penalties.

The Rent Stabilization Commission (RSC) vs. the Rent Guidelines Board (RGB)

This distinction is critical. New York City uses the Rent Guidelines Board (RGB) to set annual rent increase percentages. Westchester County uses the Rent Stabilization Commission (RSC). These are separate bodies with separate orders.

In 2026, the Westchester RSC establishes increase limits independent of the NYC RGB. For example:

• One-year lease renewal: 2.75% maximum increase (2026 RSC order)
• Two-year lease renewal: 4.5% maximum increase (2026 RSC order)

Compare this to NYC’s RGB, which may set different percentages. A landlord managing properties in both jurisdictions must track two separate increase schedules. Charging a tenant the NYC RGB allowance when only the lower Westchester RSC amount is permitted violates the ETPA and triggers overcharge liability.

Property Registration: The Mandatory First Step

If your Westchester building is stabilized under the ETPA, you must register it with the New York State DHCR. This is not optional. Registration is the baseline compliance requirement.

Registration Requirements

Who Must Register: The owner or agent of any building subject to the ETPA with 6+ units.

What You Must Register:

• Building address and unit count
• Owner name and contact information
• Current tenant roster (names, unit numbers, lease expiration dates)
• Rents charged to each tenant
• Any rent increase history

Deadline: Registration must occur within 90 days of the building becoming subject to the ETPA. For buildings already stabilized, the deadline has likely passed. You should verify your registration status immediately with DHCR.

Penalty for Non-Registration: Under RSL § 226, failure to register results in:

• The building loses rent stabilization protection (rent de-stabilizes)
• Tenants can pay the lower of: (a) the rent charged when the building should have been registered, or (b) the initial stabilized rent
• Tenants are entitled to sue for overcharges plus attorney fees and costs
• DHCR can assess civil penalties up to $1,000+ per violation

The practical effect: failing to register can render your entire building unregulated, forcing you to accept whatever below-market rents tenants demand.

How to Register

Visit the DHCR website (housing.ny.gov) and complete the Apartment Registration Form (RGB-1 or RSC-1). Westchester properties use the RSC-1. You may register online, by mail, or through an authorized property manager. The form requires notarization in most cases.

Once registered, DHCR issues a building identification number (BIN). Keep this number on file—you’ll need it for annual re-registration.

Rent Increase Limits Under the Westchester RSC

The RSC sets annual increase percentages each year in a formal “Order.” These orders are published by July 1 of each year and take effect on October 1. Landlords must comply immediately; there is no grace period.

2026 Westchester RSC Increase Guidelines

Lease Type	Maximum Increase (2026)	Effective Date
One-year lease renewal	2.75%	October 1, 2026
Two-year lease renewal	4.5%	October 1, 2026

Key Rules:

• You cannot charge more than the RSC allowance. If the tenant’s current rent is $1,000, you can increase it to no more than $1,027.50 for a one-year renewal (1,000 × 1.0275).
• You can charge less than the allowance. There is no minimum increase requirement. However, most landlords charge the full RSC allowance to maintain purchasing power.
• The increase applies to the entire renewal term. If you charge 2.75% in year one of a two-year renewal, you cannot apply an additional increase mid-lease.
• Increases are calculated from the rent paid, not the “legal regulated rent.” If a tenant has been underpaying, you still calculate from their actual rent.

Lease Renewal Notice Requirements

You must provide notice of lease renewal terms at least 90 days before the lease expires (Westchester RSC § 2540.6). This notice must include:

• The proposed new rent (calculated from the RSC allowance)
• The renewal lease term offered (1 year or 2 years)
• The effective date of the renewal
• A copy of the RSC Order showing the allowable increase

Failure to provide timely notice does not automatically void the lease renewal; however, it weakens your legal position if the tenant disputes the increase. Best practice: send renewal notice by certified mail with return receipt at least 120 days before expiration (adding a 30-day buffer).

Overcharge Liability and Treble Damages

Charging rent above the RSC allowance is an overcharge. Overcharges trigger significant tenant remedies under RPL § 223-e.

What Constitutes an Overcharge

An overcharge occurs when you charge:

• More than the legally allowable rent increase
• An illegal fee or surcharge (e.g., charging for heat when it’s included in rent)
• Rent for a unit not properly registered
• Rent under a lease that does not comply with RSL and ETPA requirements

Ignorance is not a defense. Even unintentional overcharges create liability.

Tenant Remedies

A tenant who proves overcharge can recover:

• Actual overcharge amount: All rent paid above the legal limit
• Treble damages: Three times the overcharge amount (if overcharge was willful)
• Attorney fees and costs: The tenant’s legal expenses are paid by the landlord
• Interest: Accrues from the date of overcharge

Example: A tenant overpays $5,000 due to a 5.5% increase when only 2.75% was allowed. If the overcharge was willful, the tenant recovers:

• $5,000 (actual overcharge)
• $15,000 (treble damages)
• $3,000+ (estimated attorney fees)
• Total: $23,000+

The “willful” standard is low. Courts find willfulness even when landlords claim they misunderstood the RSC order. The only defense is good-faith reliance on written advice from a qualified attorney—and even that is uncertain.

Statute of Limitations

A tenant can sue for overcharges occurring within the past 6 years (CPLR § 213). For leases signed before July 2020, the lookback extends further under prior law. This means a single error can expose you to 6+ years of back rent liability.

Special Rules: Initial Stabilized Rents and Lease Commencement

When a unit first becomes stabilized under the ETPA, the initial rent is called the “initial stabilized rent” (ISR). This rent is frozen unless you complete a Major Capital Improvement (MCI) or individual apartment improvement (IAI).

What Is an Initial Stabilized Rent?

The ISR is the rent in effect on the date the building becomes subject to the ETPA. For most Westchester buildings, this date was January 1, 1974 (the ETPA’s effective date). However, if your building was constructed after 1974, the ISR is the rent when the building first became subject to the law.

Key Rule: The ISR can only increase by the RSC annual allowance. You cannot charge above this baseline.

Burden of Proof: If a tenant challenges the ISR, you must prove it by documentary evidence (lease, rent roll, DHCR records). DHCR will not accept oral testimony or estimates.

Major Capital Improvements (MCIs)

If you make a capital improvement that benefits the entire building (roof replacement, boiler upgrade, etc.), you may apply for an MCI rent increase surcharge. This is a separate increase on top of the RSC annual allowance.

MCI Requirements:

• The improvement must cost at least $15,000 per unit (as of 2026; adjusted annually for inflation)
• You must file an MCI application with DHCR before increasing rent
• The increase is spread over 9 years
• Tenants have the right to challenge the application

Many landlords attempt MCI increases without DHCR approval. This is an overcharge. Always file the application first.

Non-Compliance Enforcement and Penalties

The DHCR actively enforces stabilization rules in Westchester. Violations result in civil penalties, tenant lawsuits, and damage to your rental license.

DHCR Enforcement Actions

Who Investigates: The DHCR Rent Administration Unit handles complaints. They may initiate investigations based on tenant complaints or routine audits.

Common Violations Found:

• Charging above the RSC allowance (most common)
• Failing to register the building
• Illegal lease terms that violate RSL
• Improper ISR documentation
• Failure to provide renewal notices

DHCR Penalties:

• Civil violation fine: Up to $1,000 per violation (often one violation per unit per year)
• Order to refund overcharges plus interest
• Negative DHCR record (affects future rent increase approvals, licensing)
• Building rent de-stabilization (in cases of bad-faith non-compliance)

Tenant Overcharge Lawsuits

Tenants often sue directly in housing court rather than file DHCR complaints. Housing court can award treble damages, attorney fees, and court costs—often exceeding $50,000 for a single unit across multiple years.

Tenant’s Burden: The tenant must prove the overcharge by a preponderance of the evidence. They do not need to prove willfulness to recover actual damages, but willfulness is required for treble damages.

Your Defense Options (Limited):

• Prove the increase was permitted by a valid RSC order
• Prove the tenant is not stabilized (building does not meet ETPA criteria)
• Prove the increase was for a lawful surcharge (fuel, water) authorized by RSL

“I didn’t know the building was stabilized” is not a defense.

Lease Requirements and Lease Renewals

Stabilized leases in Westchester must comply with RSL and RSC regulations. Prohibited lease terms include:

• Charges for essential services (heat, hot water, electricity to common areas)
• Automatic renewal clauses that exceed two years
• Waiver of tenant rights
• Charges for normal wear and tear
• Increased deposits beyond one month’s rent

Inclusion of prohibited terms in a lease does not void the lease, but it allows the tenant to challenge the terms in housing court and recover damages.

Lease Renewal vs. New Tenancy

When a stabilized lease expires and the tenant remains in occupancy, the renewal is treated as a new lease with the RSC-approved increase. You cannot:

• Refuse to renew solely to deregulate the unit (called “preferential rent,” which is illegal)
• Charge above the RSC allowance as a “concession” for early renewal
• Add new fees or surcharges not previously charged

However, you can offer renewal terms of 1 year or 2 years (at the respective RSC rates), and the tenant must choose. If they do not respond to renewal notice within 30 days, the lease is treated as expired, and the tenant becomes a month-to-month tenant at the renewal rent.

Year-to-Year Tenancies and Month-to-Month

If a stabilized lease expires and the tenant continues to pay rent without a new lease (a “holdover” situation), the tenancy is deemed month-to-month at the last stabilized rent. You may not increase rent until you serve a proper renewal notice and lease proposal.

Rent Increase Notice Timing: For month-to-month tenancies, you must provide 90 days’ notice of a rent increase in a stabilized unit. This is longer than the typical 30-day notice required in non-stabilized properties.

Many landlords accidentally create month-to-month stabilized tenancies by allowing leases to lapse without renewal documentation. The tenant then claims the lower, prior rent indefinitely. Avoid this by renewing leases at least 90 days before expiration.

De-Regulation and High-Income Threshold

In New York City, units can be de-regulated if the tenant’s income exceeds a threshold and the stabilized rent exceeds a second threshold. However, Westchester County does NOT have an income-based de-regulation policy. All tenants in covered buildings remain stabilized regardless of income or rent amount.

This is a key difference from NYC. A high-income tenant in a Westchester stabilized unit still has all RSL protections.

Compliance Checklist for Westchester Landlords

Before You Collect Rent:

• ☐ Confirm your building meets ETPA criteria (6+ units, pre-1974 construction)
• ☐ Register the building with DHCR using RSC-1 form
• ☐ Obtain DHCR building ID number and keep it on file
• ☐ Document the initial stabilized rent (ISR) with supporting lease or rent roll
• ☐ Ensure all leases comply with RSL (no prohibited terms)

Each Year (Before Lease Renewals):

• ☐ Check the DHCR website for the current year’s RSC Order (published by July 1)
• ☐ Calculate the maximum rent increase using the RSC percentage
• ☐ Prepare renewal notices 90+ days before lease expiration
• ☐ Send renewal notices by certified mail with return receipt
• ☐ Include a copy of the RSC Order in the renewal notice package
• ☐ Offer 1-year or 2-year terms at the respective RSC rates

During Tenancy:

• ☐ Do not charge for essential services (heat, hot water, basic electricity)
• ☐ Do not implement surcharges or fees not authorized by RSL
• ☐ Maintain lease and rent payment records for 6+ years
• ☐ If tenants dispute the rent, do not retaliate (illegal under RSL § 223-f)
• ☐ Monitor for DHCR notices or tenant complaints

If Planning Major Repairs:

• ☐ Determine if the work qualifies as an MCI (cost threshold, building-wide benefit)
• ☐ If MCI-eligible, file MCI application with DHCR before increasing rent
• ☐ Do not implement surcharges without DHCR approval

Using Technology to Stay Compliant

Self-managing Westchester stabilized properties requires tracking multiple data points: ISRs, RSC orders, lease renewal dates, increase calculations, and tenant communications. Spreadsheets create error risk—especially when managing multiple units or properties.

A rent management system like LeaseBase automates rent calculation and payment tracking, stores lease documents with expiration date alerts, and flags when renewal notices are due. Compliance automation can alert you to RSC order changes and calculate maximum increases by jurisdiction, eliminating manual calculation errors that trigger overcharge liability.

Keeping clear, documented records—lease agreements, DHCR confirmations, increase calculations, and tenant communications—is your best defense if a DHCR investigation or lawsuit occurs.

Frequently Asked Questions

Q: My Westchester building has 5 units. Am I covered by the ETPA?

A: No. The ETPA requires 6+ units. A 5-unit building is not subject to rent stabilization, even if built before 1974. You can charge market rent and increase as you wish (subject to general landlord-tenant law). However, confirm that your building doesn’t meet other state or local regulations—some municipalities have separate rules.

Q: I increased rent by 3% last year. The RSC 2026 order allows 2.75%. Do I owe back rent?

A: Yes, you may owe an overcharge. If the 3% increase violated the prior year’s RSC order (e.g., if the order capped increases at 2.5%), you owe the difference plus interest. If 3% was within the prior year’s allowance but now the tenant claims harm, the tenant has 6 years to sue. File your records with a qualified attorney immediately. Do not continue overcharging in 2026—apply the 2.75% limit now to all renewals.

Q: Can I de-stabilize a unit by refusing to renew the tenant?

A: No. Refusing to renew a stabilized lease solely to avoid the RSC increase caps is illegal under RSL § 223-e(1). If the tenant can prove your refusal was retaliatory (connected to their rent dispute or complaint), they can sue for damages. The only lawful reason to refuse renewal is for lease violations (non-payment, property damage, etc.), not to reduce your regulatory burden.

Q: I just discovered my building hasn’t been registered with DHCR. What happens now?

A: Register immediately. DHCR may issue a violation, but prompt registration often reduces penalties. However, any rents you collected above the ISR + cumulative RSC increases are overcharges. Calculate the overcharge amount per unit going back 6 years and consult an attorney about settlement options. Waiting delays liability; fixing it now limits damage.

Q: The tenant says the building is stabilized; I say it’s not. How is this resolved?

A: If the tenant sues for an overcharge in housing court, the judge will determine whether the building meets ETPA criteria. You must prove: (1) fewer than 6 units, or (2) construction date after January 1, 1974, or (3) an exemption applies. If the tenant proves stabilization applies, you owe overcharges and attorney fees. Have your property’s deed, construction permits, and DHCR records available to support your position.

Key Takeaway: Compliance Is Mandatory, Not Optional

Westchester County’s ETPA is not a gray area or guideline—it is binding law. Many self-managing landlords assume their property is not stabilized because it’s outside NYC. This assumption is dangerous. If your building has 6+ units and was built before 1974, stabilization applies regardless of geography or your belief.

The penalty for non-compliance is severe: treble damages, attorney fees, DHCR enforcement, and potential rent de-stabilization. Compliance requires just three actions: (1) register with DHCR, (2) apply the RSC increase each year, and (3) follow lease renewal procedures.

Use documentation, timelines, and automated compliance tracking to remove guesswork. The small cost of proper management is far less than the liability of a single overcharge lawsuit.