Rent stabilization is a type of rent regulation. Under rent stabilization laws, landlords are limited in how much they can increase rent for existing tenants in certain residential properties. Rent stabilization laws also often provide tenants with additional protections, such as the right to renew their lease. Rent stabilization is meant to help keep rental housing affordable and to protect tenants from sudden, dramatic rent increases.
In some cases, a TIC arrangement might involve a rental property that is subject to rent stabilization laws. If so, the owners (tenants in common) of that property would need to comply with the rent stabilization laws when leasing units in the property to tenants. This means that the tenants in common could be limited in how much they can increase rent, and they might have to offer certain lease renewal rights to tenants.
However, it’s essential to note that rent stabilization laws typically apply to specific types of rental properties (often multi-family buildings) and in specific areas (usually cities with these regulations). Whether rent stabilization laws apply to a particular TIC property will depend on various factors, including local and state laws and the specifics of the property and its use.
If you are considering entering into a TIC agreement involving a rental property, or if you are a tenant in a TIC-owned property, it might be wise to consult with a real estate attorney who can provide guidance based on your specific situation and the applicable laws in your area.