A friend who recently received a lease renewal notice sighed at the café. The notice stated that the rent would increase by 8%, and they asked me if Fort Lee has rent control.

Honestly, I wasn't exactly sure either. So, I decided to look up the original text of the borough ordinance.

To cut to the chase, Fort Lee does have rent control. However, it doesn't apply uniformly to all homes, so we need to determine where our home falls.

The basis for this is Chapter 324 of the Fort Lee borough ordinance. It has been in effect since March 1979 and has been amended several times since.

The key number is 5%. It states that at least 12 months must pass after the last increase before a new one can occur, and even then, it cannot exceed 5% of the previous base rent.

The ordinance clearly states that any increase beyond this limit is invalid. Therefore, if the 8% notice my friend received applies to their home, there is no reason to accept it.

For senior and disabled tenants, the cap is even lower. If qualified, the annual increase cannot exceed 3.5%.

This qualification is obtained by submitting an application to the rent leveling office. It's not a one-time approval; a confirmation of continued eligibility must be submitted every two years.

So, what are the exceptions? The first to be filtered out are cases where the landlord lives in one unit of a building with fewer than three units.

In simple terms, if the landlord lives on the first floor and rents out the second floor in a two-family home, this ordinance does not apply. Hotels and motels are also excluded.

Rental properties owned by the Fort Lee Housing Authority are also exempt. Similarly, specific buildings owned by non-profit organizations for low-income housing with fewer than 12 units are excluded.

Newly constructed buildings are treated differently. New Jersey state law (N.J.S.A. 2A:42-84.2) exempts newly constructed rental buildings with four or more units that received building permits after the law took effect in 1987 from regular increase limits.

The exemption period is the shorter of 30 years after completion or the initial mortgage repayment period. If there was no mortgage from the start, it would be 30 years.

Recently constructed high-rise rental buildings are likely to fall under this category. I initially thought new buildings were great, but it was surprising to learn that they might have less protection regarding increases.

However, conditions apply. The landlord must provide written notice before the contract stating that the building is exempt from rent control, and this must be included in the lease.

Additionally, an exemption application must be submitted to the city's building official at least 30 days before the certificate of occupancy (CO) is issued. In 2022, the New Jersey Appellate Court ruled in the Union City case that landlords who could not provide this documentation would lose their exemption.

For condos, co-ops, or single-family homes, there are vacancy decontrol regulations. If a tenant voluntarily leaves or is legally evicted, a new rent can be set through mutual agreement with the next tenant.

However, it's not completely unrestricted. Once a new rent is established, the ordinance applies again, and the landlord must register the new contract with the rent leveling board within 60 days.

In contrast, in regular rental apartment buildings where this regulation does not apply, even if a tenant agrees to move to a different unit in the same building, the base rent cannot be increased by more than 15%.

The method of notifying about increases is also specified. The landlord must send a certified mail to the tenant containing the base rent and the calculation basis, and they must also inform the rent leveling board.

So, if you receive a text or email stating the new rent starting next month, it's worth checking the procedure.

If you're unsure whether your home is subject to these regulations, check in order. First, look at how many units are in the building and whether the owner lives there.

Next, check when the building was constructed and whether there are exemption clauses in the lease. If it's a condo or single-family home, you can also ask if a new rent was registered when you moved in.

If you still don't know, the quickest way is to ask the rent leveling office directly. The Fort Lee Housing Authority manages this office, located at 1403 Teresa Drive, and their phone number is 201-676-3008.

If you believe the increase is unjust, you can file an appeal with the board. The filing fee is $20, and you can request a refund for overpaid rent for up to six years prior to the application date.

I also learned for the first time that there are harassment regulations. Actions such as reducing services or making baseless eviction threats are violations, and the court can impose fines of up to $2,000 per incident.

Of course, landlords have their side too. If taxes or operating costs rise significantly and they are not making a reasonable profit, the ordinance allows them to apply for additional increases.

So, rather than fighting blindly, it's best to check the numbers first. I recommend confirming with the office whether the ordinance document I read reflects the latest amendments.

If the situation is complicated, discussing it with a tenant rights counseling agency or a real estate attorney is also an option.

In the end, my friend decided to pull out their lease to check for exemption clauses and call the office. I plan to keep the 5% figure I learned this time in mind during future lease renewals.