You've probably seen the headlines or heard the whispers in the hallway—something is changing with New York leases again. Honestly, keeping up with the legal shift in this state feels like a full-time job. Between the "Good Cause" ripple effects and the brand-new transparency rules hitting the streets this month, the landscape for January 2026 looks a lot different than it did even six months ago.
If you’re a renter trying to figure out if your landlord is pulling a fast one, or an owner just trying to stay out of Housing Court, there’s a lot to wade through. Basically, the "wild west" era of NYC rent pricing is getting another layer of digital and physical armor.
The Rent Transparency Act: Why Your Lobby Just Got New Signage
Starting January 1, 2026, a new reality hit NYC apartment buildings. It’s called the Rent Transparency Act (Intro 1037), and it’s a big deal. You might have already noticed some fresh paper taped up in your building's common area.
Landlords are now legally required to post signs in both English and Spanish that explicitly state which units in the building are rent-stabilized. But it goes further than just a list. These signs have to explain exactly how a tenant can contact New York State Homes and Community Renewal (HCR) to get their official rent history.
Why does this matter? Because for years, thousands of New Yorkers lived in stabilized units without even knowing it. They were paying "market rates" for apartments that should have been regulated.
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Pro Tip: If you see that sign and your apartment is on the list, but your lease says "Market Rate," you might be sitting on a massive rent overcharge claim.
Good Cause Eviction: The 2026 Reality Check
We’ve had about a year and a half to see how the "Good Cause" eviction laws actually play out. By now, over 17 municipalities across New York have opted into these protections. If you’re in an unregulated, market-rate apartment, your landlord can’t just decide not to renew your lease because they feel like it anymore.
They need a "good cause."
- Non-payment of rent (obviously).
- Nuisance behavior (think: your 2 AM bagpipe practice).
- Owner occupancy (they actually want to move back in).
But the part that’s catching people off guard in 2026 is the price-gouging cap. For this year, the "local rent standard" is pegged at 8.79%. That’s the magic number. If your landlord tries to hike your rent by 10% or 15% and you’re covered by Good Cause, that increase is "presumptively unreasonable." You can literally walk into court and use this law as a shield to keep your home.
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Who Is Actually Exempt?
It's not everyone. Don't get it twisted. You aren't covered if:
- Your building was built in the last 30 years (new construction has a long grace period).
- Your landlord is a "small landlord" (owns 10 or fewer units).
- Your rent is sky-high—specifically over 245% of the Fair Market Rent. For a one-bedroom in NYC right now, that means if you're paying over $6,005, you're likely on your own.
The "Squatter" Definition Refinement
One of the more dramatic updates we've seen recently involves the clarification of who counts as a tenant. There was a lot of noise in the media about "squatters" taking over homes and claiming tenant rights after 30 days.
The legislature finally stepped in to draw a hard line. The law now explicitly states that squatters are not tenants. This makes it significantly easier for property owners to involve the police for immediate removal rather than waiting two years for a Housing Court date. It’s a move toward balance that even some tenant advocates admitted was necessary to keep the system from being abused.
New Fees and the $20 Cap
If you’re hunting for a place right now, remember: the era of the $100 "application fee" is dead.
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By law, a landlord or broker can only charge you a maximum of $20 for a background or credit check. And here is the kicker—if you provide your own background check that you’ve done in the last 30 days, they can’t charge you a dime.
They also can't ask for "last month's rent" upfront anymore. It’s just the first month and one month of security. Period. If they ask for more, they are breaking the law.
Legislative "Watch List" for 2026
We are currently watching a few bills moving through Albany that could change things by the summer:
- The Tenants Organizing Act (S1557): This would give tenant unions more power to meet in building common areas and invite outside guests (like lawyers) without being charged "event fees" by the landlord.
- The Tenants' Bill of Rights (S08857): This would require a standardized "rights" flyer to be attached to every single lease execution in the state.
- TOPA (Tenant Opportunity to Purchase Act): This is the "holy grail" for many activists. It would give tenants the first right of refusal to buy their building if the landlord decides to sell. It's a long shot, but it has more momentum this session than ever before.
Actionable Next Steps for Tenants and Landlords
If you’re a tenant:
Go to the lobby. Look for that new Rent Transparency sign. If it’s not there, and you suspect your building is older than 1974, call 311. Also, request your Rent History from the DHCR website immediately. It’s free, and it’s the only way to know if your rent is legal.
If you’re a landlord:
Audit your notices. If you are sending a rent increase of 5% or more, you must include the Good Cause Eviction notice—even if you think the law doesn't apply to you. Failing to include the required "applicability" or "inapplicability" notice can lead to your eviction case being thrown out of court on a technicality before it even starts.
New York law doesn't care if you "didn't know." In 2026, the courts are leaning heavily on procedural perfection. Get your paperwork right, or expect to pay for it.