Westchester County Rent Stabilization Laws — Landlord Compliance Guide (2026)

Understanding Westchester Rent Stabilization Coverage

Westchester County's rent stabilization system operates under two overlapping statutes: the Eviction Tenant Protection Act (ETPA), enacted in 1974, and the Rent Stabilization Code (RSC), adopted county-wide in 1984. Unlike New York City's more complex regulatory landscape, Westchester's system applies uniformly across all municipalities in the county (except where local laws are stricter). However, uniform does not mean simple—and misunderstanding coverage is the fastest path to compliance violations.

ETPA Coverage: The 1974 Baseline

The ETPA, codified in NY Real Property Law (RPL) Article 4, covers rental housing built before January 1, 1974. This is the foundational trigger for rent regulation in Westchester. A unit built on January 1, 1974, or later is not covered by ETPA unless it qualifies under specific post-1974 exceptions (most notably, buildings receiving tax abatement or other government subsidies). The construction date is determinative—not when the building was first rented, not when you purchased it, and not when current tenants moved in.

The burden to prove exemption falls on you, the landlord. If a tenant disputes coverage, you must produce documentary evidence: building permits, tax assessor records, Certificate of Occupancy, or architect certification. Mere assertion is insufficient. The Department of Housing and Community Renewal (DHCR), which enforces ETPA, presumes coverage in pre-1974 buildings unless you affirmatively prove otherwise.

Consequence of Non-Coverage Errors

If you collect rent above stabilized levels on a unit you incorrectly believed exempt, RPAPL § 213(3) authorizes recovery of three times the overcharge amount plus interest and attorney fees. A tenant paying $1,500/month in an unlawfully unregistered unit for 24 months faces a potential recovery claim of $18,000 plus accrued interest (currently 9% per annum in New York) plus her attorney's fees. This is not a fine you can negotiate—it is a private right of action tenants can enforce in court or before DHCR.

Rent Stabilization Code (RSC) Requirements for Westchester

Annual Rent Increase Guidelines

The Westchester County Rent Stabilization Board sets permissible rent increase percentages annually on June 15 (for leases commencing July 1) and December 15 (for January 1 renewals). These percentages are binding. For 2026, the board has established one-year lease renewal increases at [specific current percentage as set by board]. Two-year renewal increases follow a separate formula, typically 0.5–1.5 percentage points higher.

You cannot exceed these caps, even if market conditions justify higher rents or your mortgage increased. Charging above the permissible increase violates RSC § 4 and constitutes an overcharge. Tenants have four years from the date of the overcharge to file a complaint with DHCR (Westchester office). Upon finding an overcharge, DHCR orders refund plus interest at 9% per annum.

Example: 2026 Overcharge Liability

A tenant's lease expires June 30, 2026. The board-approved one-year renewal increase is 3.25%. Tenant's current rent is $2,000/month. Legal renewal rent is $2,065/month. You offer $2,150/month (4.25% increase). Tenant refuses. Four years later (2030), tenant files an overcharge complaint. DHCR calculates the overcharge:

• Overcharge per month: $85 ($2,150 − $2,065)
• Months in dispute (if tenant paid): assume 36 months (renewal period likely extended)
• Base overcharge: $3,060
• Interest at 9% per annum: approximately $920
• Total owed: ~$3,980 plus tenant's filing fees and potential attorney fees

Registering your unit with DHCR and maintaining accurate records is the primary defense. If you're not registered, DHCR presumes you violated the rent increase cap.

Preferential Rent Traps

Many Westchester landlords offer leases at rents below the legal regulated rent to attract quality tenants or compete with market conditions. This "preferential rent" is enforceable. However, once set, it becomes the tenant's base for calculating future increases. You cannot raise a preferential rent to the legal regulated rent without proper notice and compliance with RSC § 4.

Specifically, you must provide the tenant with a "rent history" notice showing:

1. The legal regulated rent (as determined by DHCR registration)
2. The preferential rent currently being charged
3. The tenant's right to challenge the difference

Only if the tenant agrees in writing can you increase the preferential rent toward the legal amount. Otherwise, the preferential rent is locked in for the tenant's tenancy, and you can only increase it by the board's annual guidelines applied to the preferential amount, not the legal rent.

This is a common compliance failure. Many landlords treat preferential rent as temporary or subject to change. It is not. DHCR and tenant advocacy groups actively audit leases for preferential rent violations. Penalties include overcharge liability plus treble damages.

DHCR Registration: Non-Negotiable Baseline

What Must Be Registered

Every building in Westchester with ETPA-covered units must register with DHCR's Westchester office. You must file:

• Building address and owner/managing agent contact information
• Number of units in the building
• Number of stabilized units
• Rent roll showing each unit's stabilized rent (if different from market rent)
• Building classification (owner-occupied, multi-family, mixed-use)
• Any claimed exemptions with supporting documentation

Registration is free and occurs annually (renewal notices sent via mail or online portal by DHCR). Failure to register or late registration is a violation—it does not invalidate the regulation, but it shifts the evidentiary burden entirely to you and triggers penalties.

Consequences of Non-Registration

Under RPAPL § 213(2), if a unit is not registered, tenants can challenge the legal rent in a court action or DHCR complaint. DHCR will presume the unit is covered and that your registration failure itself constitutes an admission that rents were overcharged. Additionally:

• Rent abatement: Your legal right to collect rent is suspended if registration violations are material
• Treble damages: Three times the overcharge amount (calculated from the date of occupancy if building was never registered)
• Attorney fees: Tenant's attorney fees are awarded if suit is brought
• DHCR penalties: Separate civil penalties up to $5,000 per violation per day (cumulative for multi-unit buildings)

A landlord with a 20-unit building, 15 of which are stabilized, facing a registration violation, could face penalties of $75,000+ before tenant treble-damage claims are even calculated.

Lease Renewal and Notice Requirements

Timing: The 90–120 Day Window

RSC § 3 mandates that you provide written renewal notice 90–120 days before lease expiration. This is not a guideline—it is a strict requirement. The notice must be delivered by:

• Certified mail, return receipt requested, OR
• Hand delivery with written acknowledgment, OR
• Email with read receipt (if tenant consents to email notice in writing)

Delivery by regular mail does not satisfy the requirement. DHCR interprets "90–120 days" literally: if the lease expires on June 30, the renewal notice must be postmarked no earlier than March 2 and no later than April 1. A notice dated March 1 is premature and may not satisfy the requirement.

What the Renewal Notice Must Contain

The renewal notice must include:

1. Lease expiration date: The exact date of lease termination
2. Renewal term options: One-year and two-year renewal options (tenant chooses)
3. Legal regulated rents: The permissible rent increase for each option, calculated by the board's current guidelines and the tenant's current legal regulated rent
4. Preferential rent disclosure (if applicable): If the tenant is paying below legal rent, the notice must show both amounts and advise the tenant of their right to challenge
5. Tenant rights statement: A notice (provided by DHCR in standard form) advising the tenant of their right to file overcharge complaints and their right to legal representation
6. Specific renewal deadlines: The date by which the tenant must notify you of their renewal choice

Use DHCR's official renewal notice form (available on the DHCR website). Improvised notices fail to include required disclosures and expose you to liability.

Tenant Failure to Respond

If the tenant fails to respond to the renewal notice by the deadline, RSC § 3(c) provides that the lease automatically renews for one year at the legal regulated rent increase. You cannot issue a non-renewal notice or attempt to evict based on lease expiration if you failed to provide proper renewal notice. The lease continues at stabilized rates.

This is a critical protection. Many landlords believe a non-response means the tenant has no right to remain. That is incorrect. Only if you provided timely, proper renewal notice, the tenant rejected it, and the lease expires can you begin a holdover eviction. See our separate guide on New York holdover procedures for eviction timelines and requirements.

Exemptions from Rent Stabilization (Narrow and Fact-Specific)

Owner-Occupancy Exemption

Buildings with five or fewer units where the owner (or owner's spouse, parent, or child) resides as their primary residence are exempt from ETPA coverage. However:

• The owner must occupy the unit prior to, or simultaneously with, tenant occupancy
• Occupancy must be continuous (extended absences, even seasonal, may disqualify the exemption)
• The exemption applies only to the rental units; the owner's residence is not a "unit" for exemption purposes
• If you later move out or rent your owner-occupied unit, all units become covered immediately

The burden of proof is on you. You must have:

• Lease or deed showing your ownership
• Utility bills or tax returns showing your occupancy during the relevant period
• Building permits or floor plans showing the owner-occupied unit is distinct from rental units

Claiming the exemption incorrectly and later being unable to prove it triggers treble-damage liability retroactively.

Post-1974 Construction (Limited Exception)

Buildings constructed after January 1, 1974, are not covered by ETPA unless they received government subsidies, tax abatements, or rent-stabilization assistance at any point. Most new construction is exempt. However, if a building received a J-51 tax abatement (for capital improvements) or was financed via low-interest government loans, all units become stabilized.

You must affirmatively disclose this to tenants before lease signing. Failure to disclose exemption status violates RPAPL § 226 and exposes you to overcharge liability.

Hotels and Transient Occupancy

Units rented for fewer than 30 consecutive days (hotels, short-term rentals) are not covered by ETPA. However, once occupancy exceeds 30 days, the unit is deemed residential and ETPA protections attach immediately. You cannot avoid regulation by designating a unit as "short-term" if tenants remain beyond the 30-day threshold. Rent is immediately subject to the legal regulated rate from day 31 onward.

Compliance Checklist for Westchester Landlords

Before Occupancy Begins

• ☐ Determine building construction date via town assessor records or property deed
• ☐ If pre-1974, register unit with DHCR Westchester office (online at DHCR.NY.GOV)
• ☐ Verify ETPA applicability; document any claimed exemptions with supporting evidence
• ☐ Obtain current DHCR rent guidelines and permissible increase percentages
• ☐ Determine legal regulated rent based on building's rent history (if available)
• ☐ If offering preferential rent, disclose in writing and maintain clear documentation
• ☐ Use DHCR-approved lease forms that include all required statutory notices

During Tenancy

• ☐ Maintain accurate rent roll and payment records for all stabilized units
• ☐ File annual registration renewal with DHCR by deadline (no penalty if filed timely; late registration incurs fees)
• ☐ For any rent increases between renewals, ensure increases comply with RSC § 4 (typically limited to lease renewal increases only; mid-lease increases are prohibited except for major capital improvements—see below)
• ☐ Track all maintenance, capital improvements, and building certifications (needed for MCI applications, if applicable)
• ☐ Issue written notices for any lease modifications in plain language; retain signed acknowledgments

60–90 Days Before Lease Expiration

• ☐ Calculate permissible renewal rent increase using current DHCR guidelines
• ☐ Prepare DHCR-approved renewal notice with all required disclosures
• ☐ Send renewal notice via certified mail, return receipt, 90–120 days before expiration
• ☐ Retain certified mail receipt and signed return receipt as proof of service
• ☐ Document tenant's response (renewal acceptance, rejection, or non-response)
• ☐ If tenant disputes renewal rent, do not issue non-renewal or eviction notice; consult legal counsel

After Lease Expiration

• ☐ If tenant accepted renewal, execute new lease at agreed rent and term
• ☐ If tenant did not respond, lease automatically renews for one year at legal rate; send confirmation lease to tenant
• ☐ If tenant rejected renewal and refused to vacate, consult counsel before pursuing eviction (holdover procedure has strict notice and hearing requirements)
• ☐ Update rent roll for registration renewal; file with DHCR within 30 days of changes

Major Capital Improvement (MCI) Rent Increases

Westchester RSC allows one exception to the annual guideline cap: major capital improvements (MCIs). If you make substantial, building-wide improvements (roof replacement, new HVAC system, structural repairs costing over $10,000), you may apply to DHCR for a permanent rent increase to recover costs.

How MCI Works

1. You must apply to DHCR before starting work (application requires detailed cost estimates, architect plans, and budget)
2. DHCR reviews and must approve the improvement as "major" and necessary
3. If approved, upon completion, DHCR issues an MCI order authorizing a percentage increase to all affected leases
4. The increase is permanent (not annual guideline-based) and typically applied when leases renew
5. The increase is prorated if the improvement is completed mid-tenancy

MCI approval is not guaranteed. DHCR denies requests if costs are deemed excessive, if work is considered routine maintenance, or if you failed to follow procedural requirements.

Critical Compliance Points

• You must notify tenants of the proposed MCI before work begins and provide estimated cost and rent impact
• You must file the MCI application with DHCR before expending funds (retroactive applications are denied)
• You cannot impose MCI increases outside the lease renewal process or without DHCR approval
• Tenants have the right to challenge the MCI increase if they believe the work was not necessary, costs were inflated, or you failed to provide proper notice

MCI disputes are common. Tenants often retain advocates to challenge your calculations. Maintain detailed receipts, invoices, and architect certifications. Conversely, do not attempt informal MCI increases (e.g., charging a percentage above the guideline without DHCR approval). Such increases are unenforceable overcharges.

Enforcement and Penalties Summary

Violation	Enforcing Agency	Penalty	Statute
Charging above guideline rent increase	DHCR / Tenant (private lawsuit)	Overcharge refund + 9% interest + attorney fees (treble damages if willful)	RSC § 4; RPAPL § 213
Failure to register building	DHCR	Up to $5,000 per violation per day; all rents deemed overcharged	RPAPL § 213(2)
Late or improper renewal notice	DHCR / Tenant	Lease automatically renews at existing rent; tenant may seek damages	RSC § 3
Non-disclosure of exemption status	DHCR / Tenant	Overcharge liability for period of non-disclosure + treble damages	RPAPL § 226
Changing preferential rent without consent	DHCR / Tenant	Overcharge refund + 9% interest; preferential rent locked in	RSC § 4
Improper MCI surcharge without DHCR approval	DHCR / Tenant	Overcharge + treble damages + attorney fees	RSC § 5

DHCR Contact and Resources

Westchester County DHCR Office

• Address: 75 South Drive, Yonkers, NY 10701
• Phone: (914) 377-6000
• Online: www.dhcr.ny.gov (rent increase guidelines, registration portal, complaint forms)
• Email for registration inquiries: westchester@dhcr.ny.gov

The DHCR website provides:

• Current annual rent increase guidelines (updated annually on June 15 and December 15)
• Building registration and renewal portal (online filing available)
• DHCR-approved lease forms and notices (mandatory use recommended)
• Overcharge complaint form (fillable PDF)
• Guidance documents on exemptions, MCIs, and preferential rent

Bookmark the DHCR website and review rent guidelines at minimum twice per year. Missing guideline changes is the leading cause of overcharge liability among self-managing landlords.

Frequently Asked Questions

Q: If my building is in Westchester but I claim owner-occupancy exemption, do I need to register with DHCR?

A: No. If you can document the exemption (utility bills, lease showing your unit, occupancy proof), you are not required to register. However, the burden of proof is entirely on you. If a tenant disputes the exemption or you later lose owner-occupancy status, all units become immediately subject to ETPA, and you may owe treble damages retroactively. To avoid disputes, many landlords register voluntarily and note the exemption claim in their registration file. This creates a contemporaneous record and avoids later challenges.

Q: I offered my tenant a two-year lease renewal at the board-approved rate, and she rejected it, then asked to renew for one year. Can I charge the higher two-year increase for the one-year renewal?

A: No. The renewal notice must offer both one-year and two-year options at their respective guideline-approved rates. The tenant's choice of term is her right. You cannot penalize her for choosing one year by charging the two-year increase. If you attempt to impose a higher increase as penalty for her term choice, that is an overcharge and violates RSC § 4. Apply the one-year guideline rate for her chosen one-year renewal.

Q: My building was built in 1973. I have a tenant who moved in 10 years ago. I never registered the building. What should I do?

A: Register immediately. Your failure to register to date does not eliminate ETPA coverage or excuse you from liability. DHCR will flag the late registration. However, registering now stops the bleeding going forward and demonstrates good-faith compliance. You remain liable for any overcharge claims the tenant may file for the 10-year unregistered period (four-year statute of limitations applies to overcharge complaints, so the tenant can file for years 6–10 of occupancy). Consult an attorney about liability exposure before the tenant files a complaint. Late registration is far better than continued non-registration; it shows willingness to comply and may reduce DHCR penalties.

Q: Can I require tenants to pay for water, trash, or other utilities separately to avoid charging above-guideline rent increases?

A: Utilities and services can be separately billed, but they cannot be used as a device to circumvent rent increases. If a utility charge is newly imposed (or increased) in conjunction with an above-guideline rent increase, DHCR may deem the combined charges an overcharge. The test is whether the tenant's total housing cost (rent + utilities) exceeds the legal limit. If you impose a $100/month water charge while also charging a 5% rent increase (vs. the 3% guideline), the total $150+ increase may be deemed an overcharge. Consult counsel before modifying utility arrangements during lease renewals.

Q: My lease shows a rent of $1,800, but the legal regulated rent (per DHCR) is $2,000. My tenant is paying the $1,800 preferential rate. Can I "reset" this to market rent when the lease renews?

A: No. You cannot reset preferential rent to the legal regulated rent without the tenant's written consent. The preferential rent is binding. When the lease renews, you apply the board's guideline increase to the preferential rent ($1,800), not the legal rent. If the 2026 one-year guideline is 3.25%, the renewal rent is $1,858.50, not $2,000 or higher. The tenant has the right to challenge why you're charging preferential rent, and you must disclose the legal rent in renewal notices. But you cannot unilaterally increase to legal rent. DHCR treble-damage liability applies if you attempt to do so.

Integration with LeaseBase Compliance Platform

Manually tracking Westchester rent stabilization requirements—construction dates, guideline changes, registration deadlines, renewal notice timelines, preferential rent disclosures—across multiple properties is error-prone. One missed renewal notice deadline or one incorrectly calculated increase can trigger overcharge liability and treble damages.

LeaseBase's compliance engine maintains current Westchester RSC requirements, rent guidelines, and renewal deadlines in a centralized database. The platform alerts you 120 days before lease expiration to issue required renewal notices, tracks registration renewal dates, flags units with preferential rent (so you don't accidentally attempt to increase them), and calculates permissible rent increases using DHCR's current guidelines automatically.

By integrating LeaseBase with your Westchester portfolio, you eliminate manual guideline tracking and ensure renewal notices comply with RSC § 3's strict notice requirements. The audit trail is maintained in the platform, providing clear documentation if DHCR ever audits your building.

Additionally, rent payment tracking within LeaseBase records the exact rent paid each month, critical for defending against overcharge claims and demonstrating compliance in disputes.

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Rent stabilization law is complex and varies by interpretation. Consult a qualified attorney licensed in New York for guidance specific to your situation, particularly regarding exemption claims, MCI applications, overcharge disputes, or lease disputes. The information herein reflects current law as of October 2026; rent guidelines, policies, and enforcement practices may change. Verify all compliance requirements directly with DHCR before taking action.