<P> To qualify for rent control, a tenant must have been continuously living in an apartment since July 1, 1971, or be a qualifying family member who succeeded to such tenancy . When vacant, a rent - controlled unit becomes "rent stabilized", except in buildings with fewer than six units, where it is usually decontrolled . In units within single and two - family homes, the tenant must have resided in the unit continuously since March 31, 1953, to qualify for rent control . Once the unit becomes vacant, it is decontrolled . Rent control does not generally apply to units built after 1947 . </P> <P> Rent control limits the price a landlord can charge a tenant for rent and also regulates the services the landlord must provide . Failure to provide these may allow the tenant to receive a lower rent . Outside of New York City, the state government determines the maximum rents and rate increases, and owners may periodically apply for increases . </P> <P> In New York City, rent control is based on the Maximum Base Rent system . A maximum allowable rent is established for each unit . Every two years, the landlord may increase the rent up to 7.5% (as of 2012) until the Maximum Base Rent is reached . However, the tenant may challenge these increases on grounds that the building has violations or that the higher amount exceeds that needed to cover expenses . </P> <P> Maximum Base Rent (MBR) is calculated to ensure the rent from rent control units covers the cost of building maintenance and improvements . The formula reflects real estate taxes, water and sewer charges, operating and maintenance expenses, return on capital and vacancy and collection loss allowance . The MBR is updated every two years to reflect changes in these expenses . Owners must apply for the Maximum Base Rent system for the tenants . </P>

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