Renters · Guide

The NYC renter glossary: every rental term, defined.

40x, net effective, preferential rent, rider, walk-up. Here is every word you will hear while renting in New York, in plain English, with the law behind it.

Gabe Einhorn, co-founder of NessooPublished Oct 16, 2026

7 min read

The short answerNessoo Report · nessoo.com

This glossary defines the words NYC renters run into, from the 40x rule to the warranty of habitability, with the state or city rule behind each legal term.

→Legal terms are checked against New York State and New York City sources.
→Rules of thumb like 40x and 80x are common practice, not law.
→Each term links to a full guide when we have one.

NYC listings come with their own language.

“Net effective.”
“Flex 2.”
“Guarantor required, 80x.”

Nobody explains these words. You are just expected to know them. And the people who don’t know them are the ones who get rushed into a bad lease.

So here is every term I think a renter in this city should know. Plain English. The legal ones are checked against New York State and New York City sources, listed at the bottom. Rules of thumb are labeled as rules of thumb.

0-9

311. The city’s line for non-emergency services and information. You can call it or use the 311 site to report a housing problem or a broker fee you should not have been charged.

40x rule. The common landlord practice of asking that your yearly income be at least 40 times the monthly rent. It is not a law. Full guide.

80x rule. The same idea for a guarantor: their yearly income should be at least 80 times the monthly rent. Also common practice, not law. Full guide.

A

Affordable housing lottery. See Housing Connect.

Alcove studio. A studio with an extra nook off the main room, often big enough for a bed or a desk. Still one open space, not a separate bedroom.

Application fee. In New York, the total fee for background and credit checks is capped at $20, or the actual cost if that is less. What you pay upfront.

Assignment. Handing your whole lease over to someone else, so you walk away from it. A landlord can refuse without a reason. If the refusal is unreasonable, your remedy is to be released from the lease.

B

Bedbug disclosure. For a new lease in NYC, the owner must give you a form showing the property’s bedbug history for the previous year.

Broker fee. What a real estate agent charges for a rental. Under the FARE Act, whoever hires the broker pays the broker. Who pays now.

C

Co-signer. Someone who signs on with you so the landlord has a second person to collect from. In NYC, many people use the word interchangeably with guarantor, so ask exactly what the landlord means.

Concession. A deal the landlord offers to fill a unit, most often a free month. In September 2026, 17.6% of NYC rentals on the market offered at least 1 month free.

Convertible. See Flex.

D

DCWP. The city’s Department of Consumer and Worker Protection. It enforces the FARE Act, and it is where you file a complaint if you are charged a fee you should not pay.

DHCR. The older name most people still use for NY State Homes and Community Renewal (HCR), the state agency that keeps rent stabilization records. See HCR.

Doorman building. A building with staff at the front door, full time or part time. Usually more expensive, and great for packages.

F

FARE Act. The NYC law, in effect since June 11, 2025, that says whoever hires the broker pays. The city presumes an agent who posts a listing works for the landlord. Explained here.

Fee disclosure. Under the FARE Act, every fee a renter will pay must be in the listing. Before signing, you get an itemized list in writing.

Flex. An apartment where a wall can be added to make an extra bedroom, like a “flex 2” made from a large one-bedroom. Ask whether the wall is allowed and who puts it up.

G

Gross rent. The rent written in your lease, the amount you actually pay each month. Compare with net effective rent.

Guarantor. Someone who agrees to pay your rent if you don’t. Landlords usually ask for one when your income is under 40x. Full guide.

H

HCR. NY State Homes and Community Renewal. It keeps the yearly rent registrations for stabilized apartments and answers rent history requests. How to check a unit.

Housing Connect. The city’s portal for affordable housing lotteries, run by HPD. Each lottery has income limits based on household size. It is free to apply.

HPD. The city’s Department of Housing Preservation and Development. It enforces the Housing Maintenance Code and the notices owners must give tenants.

HSTPA. The Housing Stability and Tenant Protection Act of 2019, in effect June 14, 2019. It changed many rent stabilization rules, including preferential rents.

I

Institutional guarantor. A company that acts as your guarantor for a fee. Prices and terms vary, and not every landlord accepts them. Confirm before you pay.

J

Junior one-bedroom. Usually a studio with a separate sleeping area, sometimes behind a partial wall. Smaller than a true one-bedroom. The term is not standardized, so check the floor plan.

L

Landlord’s agent. The broker the owner hired to lease the unit. Under the FARE Act, they cannot charge you their fee. For agents.

Late fee cap. A late fee can only be charged if rent is not paid within 5 days of the due date. It can be no more than $50 or 5% of the monthly rent, whichever is less. Read your lease.

Lead paint notice. In buildings with 3 or more apartments, owners must give a lead and window falls notice with each lease, plus a pamphlet on lead hazards.

Lease renewal. For most apartments, if a landlord will not renew or wants to raise rent 5% or more, they must give written notice: 30 days if you have lived there under 1 year, 60 days for 1 to 2 years, 90 days for 2+ years. Stabilized tenants get a renewal offer 90 to 150 days before the lease ends, and pick a 1-year or 2-year term.

Lease rider. An add-on page to a lease. For a rent stabilized apartment, a completed rider must be attached to the first lease and every renewal.

Legal regulated rent. The highest rent the owner of a stabilized apartment can lawfully charge. Owners register it with the state every year.

M

Market rate. An apartment that is not rent stabilized or rent controlled. The rent is whatever the owner and tenant agree to.

Move-in costs. What you pay before you get the keys: usually first month’s rent and a security deposit (max 1 month), plus any disclosed fees. Line by line.

Move-in inspection. The landlord must offer you an inspection before you move in. If you ask for one, you both sign a written record of the apartment’s condition.

Move-out inspection. The landlord must tell you that you can ask for an inspection before you leave. It happens 1 to 2 weeks before the end of your tenancy, so you can fix things first.

N

Net effective rent. The average monthly rent after a concession is spread across the lease. Example: $4,150 with 1 month free on a 12-month lease is $4,150 x 11 / 12 = about $3,804 net effective. You still pay $4,150 in the paying months.

No-fee. A listing where the renter pays no broker fee. Since the FARE Act, the renter only pays a broker they hired themselves.

P

Pre-war. A building built before World War II. Usually thicker walls and higher ceilings, often with older systems.

Preferential rent. A stabilized rent the owner agrees to charge that is lower than the legal regulated rent. If you were paying one on or after June 14, 2019, you keep it for as long as you rent the apartment.

R

Railroad apartment. Rooms lined up in a row, one after another, so you walk through one room to get to the next.

Rent controlled. A rare older system. In NYC, generally buildings built before February 1, 1947, where the tenant has lived there continuously since before July 1, 1971.

Rent Guidelines Board. The city board that sets yearly increases for stabilized renewals. For leases starting October 1, 2026 to September 30, 2027, it set 0% for 1-year and 2-year renewals.

Rent history. The state’s record of the rents an owner registered for a stabilized apartment. Request it from HCR. How to get it.

Rent stabilized. Generally apartments in buildings with 6 or more units built before 1974. Tenants are protected from sharp increases and have the right to renew. About 1 million NYC apartments are stabilized.

S

Security deposit. Capped at 1 month’s rent in New York.

Security deposit return. Within 14 days after you move out, the landlord must give you an itemized statement of anything kept and return the rest. Miss that, and they lose the right to keep any of it.

Sublet. Renting your apartment to someone else while you keep the lease. In buildings with 4 or more units, the landlord cannot unreasonably refuse. Ask by certified mail; no answer in 30 days counts as consent.

T

Tenant’s broker. A broker you hire yourself to search for you. You can agree to pay them. That is your choice, not a requirement.

V

Verified renter. On Nessoo, a renter who has verified their income and identity once, upfront, so they can be matched to units that fit. Why verify once.

W

Walk-up. A building with no elevator. A “4th floor walk-up” means 4 flights of stairs, every day.

Warranty of habitability. Every residential lease in New York comes with a promise that the apartment is fit to live in and free of conditions dangerous to your life, health or safety. You cannot waive it.

Window guard notice. The same notice as the lead notice. It asks whether a child under 11 lives in the apartment. If so, the owner must install window guards.

Here is how I see it

Most bad leases are not scams. They are words nobody explained.

Learn the terms.
Check them against the law.
Then sign.

If you want the whole process in order, start with renting in New York, step by step.

“Know the words, and nobody can rush you into a lease.”
Gabe Einhorn, co-founder of Nessoo

Frequently asked questions

What does net effective rent mean in NYC?

It is the average monthly rent after a concession like free months is spread across the lease. The rent you actually pay each month, the gross rent, is usually higher. Your lease and renewals are based on the gross rent.

What is the 40x rule for renting in NYC?

It is the common landlord practice of asking that your yearly income be at least 40 times the monthly rent. It is not a law. For a $4,150 apartment, that is $166,000 a year.

What is the difference between rent stabilized and rent controlled?

Rent stabilized apartments, generally in pre-1974 buildings with 6 or more units, have yearly increases set by the Rent Guidelines Board and a right to renew. Rent control is much rarer: generally pre-1947 buildings where the tenant has lived continuously since before July 1, 1971.

Cite this

Einhorn, Gabe. “The NYC renter glossary: every rental term, defined.” Nessoo Report, Nessoo (nessoo.com), Oct 16, 2026.

About Gabe Einhorn

Co-founder of Nessoo, the verify-first rental marketplace in New York. He writes every Nessoo Report. nessoo.com

Sources

The NYC renter glossary: every rental term, defined.

0-9

A

B

C

D

F

G

H

I

J

L

M

N

P

R

S

T

V

W

Here is how I see it

Frequently asked questions

More from Nessoo