A house with a second apartment raises questions about both homeownership and an existing or future tenancy. Before treating rent as part of a purchase budget, separate the physical condition of the apartment from the rules that apply to its occupant. The agency guidance below provides a starting point for that review. It is general consumer information; the answers for a particular home depend on its records and circumstances.
Considering a Two-Family Home in Southern Queens
Start with how you intend to use each apartment. Would you live in one, and is the other occupied? Keep those questions alongside the asking price and inspection notes. An owner-occupied arrangement can matter under Good Cause Eviction, while a tenant's existing rent-regulation status requires its own review. Avoid assuming that a listing's description of a two-family home answers every question about the second unit.
Inspecting the Rental Unit and Its Certificate of Occupancy
Make the second apartment part of the property review. Ask to compare the layout you see with the certificate of occupancy and other available building records. Note questions about rooms, entrances, shared areas, and the systems serving each apartment. Bring unresolved differences to the professionals reviewing the purchase rather than deciding from photographs or a floor plan alone.
Keep physical and tenancy questions on separate lists. A satisfactory inspection does not answer whether a tenant has rent protections, and a discussion of rent rules does not establish the apartment's condition. Request the existing lease and available rent records so those questions can be examined together.
Good Cause Eviction: Covered and Exempt
According to NYC Housing Preservation and Development's Good Cause Eviction guidance, the law protects some tenants in unregulated homes. In covered homes, landlords need a good-cause reason to end a tenancy, and tenants may raise the law as a defense in Housing Court.
HPD lists several exemptions: owners with 10 or fewer units statewide; buildings with 10 or fewer apartments when the owner lives there; homes in co-op or condo buildings; homes built on or after January 1, 2009; and homes already subject to rent or eviction regulation. The statewide ownership count and the owner-occupied building exemption are separate tests. For a purchase, identify which facts support any claimed exemption instead of relying only on the label "small landlord."
Rent Increases and Required Notices
For covered homes, HPD describes a local rent standard of inflation plus 5%, capped at 10%. Its figure as of May 4, 2026 is 8.38%, reflecting local inflation of 3.38%. An increase above that standard could be found unreasonable by a court. HPD emphasizes that the court makes the final decision and may consider a landlord's reasons, including significant repairs or increased property taxes.
The standard is not a prediction of rental income. HPD also says landlords must provide notice of Good Cause applicability or inapplicability for certain actions, including rent increases greater than 5%. Keep that notice question distinct from the question of whether the home is covered.
Is It Rent Stabilized?
The Rent Guidelines Board's stabilization FAQ directs questions about an apartment's status to New York State Homes and Community Renewal (HCR). It specifically recommends checking buildings with six or more units that are not condos or co-ops. That general guidance does not establish the status of a particular two-family home; seek a determination rather than inferring one from the unit count alone.
For rent-stabilized apartments, RGB Order #58 sets 0% increases for one- and two-year leases commencing October 1, 2026 through September 30, 2027. Those percentages apply to stabilized apartments within the order's lease dates, rather than every rental home.
Renting the Second Unit Under the FARE Act
The Department of Consumer and Worker Protection's FARE Act guidance says a landlord's broker cannot charge a prospective tenant a broker fee. This includes a listing agent advertising with the landlord's permission. A tenant may choose to hire and pay their own broker.
Landlords or their agents must disclose other required fees in listings and rental agreements. They must also provide an itemized written disclosure, with descriptions of the fees, for the tenant to sign before signing the lease. DCWP says to retain that signed disclosure for three years and provide a copy to the tenant. Review the proposed fee arrangements before advertising the apartment.
What the Seller Must Disclose
Under Real Property Law §462, subject to statutory exemptions, the seller of a one- to four-family home must complete and sign the Property Condition Disclosure Statement and deliver it before the buyer signs a binding contract. Condo units and co-op apartments are outside the form's definition.
The form asks about FEMA flood-hazard areas, federal flood assistance, flood insurance, elevation certificates, and flood-damage claims. It warns that flood-insurance obligations associated with federal disaster assistance pass to future owners. Read those answers alongside available supporting documents. For the broader purchase sequence, see the Queens home buyer's guide.