Whether you own rent-stabilized property in New York City under the Rent Stabilization Law (RSL) or in Westchester County under the Emergency Tenant Protection Act (ETPA), it is crucial that you understand the legal obligation to register your apartments annually with the New York State Division of Housing and Community Renewal (DHCR)—and the serious consequences if you fail to do so.
What the Law Requires
Landlords of rent-stabilized apartments in both NYC and Westchester County must:
- File an Initial Registrationwhen a unit first becomes subject to rent stabilization.
- Submit Annual Registrationswith the DHCR by July 31st of each year, including:
- Legal Registered Rent
- Preferential Rent
- Lease Terms
- Vacancy Status
- Rental Assistance Share
- Current Tenant Name(s)
This applies to all stabilized apartments, regardless of occupancy or vacancy status.
What Happens If You Fail to Register?
DHCR May Freeze Rent
If you fail to register, you may lose the right to collect any legal rent increases, including:
- Rent Guidelines Board (RGB) increases
- Major Capital Improvement (MCI) or Individual Apartment Improvement (IAI) increases
- Preferential rent increases upon lease renewal
After you come into compliance, the penalty is eliminated prospectively.
Overcharge Liability
Issuing rent increases while out of compliance can expose you to overcharge complaints. If a tenant files with DHCR, you may be ordered to:
- Refund overcharges, and
- Pay treble damages (triple the overcharge) if the violation is deemed willful.
Legal Proceedings Can Be Dismissed
Courts and DHCR may not enforce a rent increase or eviction if the unit is not properly registered. That means your non-payment or holdover cases could be thrown out—even if the tenant owes rent.
Tenants May Refuse to Pay Increases
If your tenant finds out the apartment isn’t registered, they may lawfully refuse to pay the increased rent.
How to Get Back in Compliance
If you’ve missed a filing:
- File late registrations for all unfiled years through the DHCR portal.
- Pay any associated fines.
- Provide accurate tenant and rent information.
- Resume future rent increases only after compliance is restored.
Remember: you cannot retroactively apply increases for the years you missed. These registrations must accurately reflect the rent actually collected.
Bottom Line
Whether your building is in NYC or Westchester, issuing rent increases without proper DHCR registration can cost you thousands in lost rent, overcharge penalties, and court dismissals.
At James G. Dibbini & Associates, P.C., we represent owners and landlords throughout New York City and Westchester County. Our team is here to help you audit your rent roll, file late registrations, ensure compliance, protect against tenant claims, handle regulatory penalties, and represent clients on DHCR complaints.
The attorneys at James G. Dibbini & Associates, P.C. collectively have over 70 years of experience providing legal services in the areas of:
