Rent stabilization
A weaker cousin of rent control that limits annual increases and often adds tenant protections. New York City is the best-known example.
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Why a seller cares
Stabilization limits rent increases and adds tenant protections, and the unit stays stabilized when it changes hands. A buyer values a stabilized unit on its regulated rent and on the rules for raising it.
Part 2 of 4
A simple example
Your unit is stabilized at $1,600 with increases set each year by a board. A buyer prices it on that rent, not on the $2,400 the unit next door gets.
| The unit | How a buyer values it |
|---|---|
| Stabilized, occupied | On the regulated rent and the allowed increases |
| Stabilized, vacant | Depends on whether the rules allow a vacancy increase |
| Not stabilized | On market rent |
Stabilization is a rule attached to the unit, and the unit is what is sold.
Part 3 of 4
What people get wrong
That stabilization ends when the tenant leaves. In most systems the unit stays regulated, and the next tenant inherits the protections.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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