Think you don’t need the services of that 24-hour doorman in your co-op anymore? Better check with the rent stabilized tenants with whom you share the building. Chances are their leases provide protection against the elimination of building services.
With the diverse status of occupants residing in co-ops or condos, including those who are rent regulated (either under controls or stabilization), shareholders, as well as tenants of shareholders, it’s easy for confusion to arise regarding who is entitled to what. Shareholders and owners commonly face opposition from tenants who feel their "rights" are being violated. So what exactly are the rights of people still covered by rent control and rent stabilization? And what are the legal ways to deregulate these apartments?
Who is Covered by Rent Regulations?
Rent control applies to buildings constructed before 1947, dating back to the housing shortage following World War II, when New York City was unable to meet the housing needs of an influx of workers. For an apartment to be under rent control, the tenant must have been living in that apartment continuously since before July 1, 1971, or must be an eligible successor.
Rent control operates under the Maximum Base Rent (MBR) system. MBR is established for each apartment and adjusted every two years to reflect costs of operation. Owners may increase rent up to 7.5 percent each year until the MBR is reached.