Rent control question. help

[Rachid Baghdad]

Hi everyone,

Back in 2019, I purchased my first investment property in New Jersey when my son started college there. I got him a couple of roommates and registered the unit with the city at the fair market rent at that time, minus my son's share. Each year, I increased the rent according to the city's official annual increase rate.

Now that my son has moved out, I wanted to re-register the unit at the current market rate. I found new tenants, and everything seemed to be going well. However, the rent control authorities are not allowing me to increase the rent by that much—the difference between the approved rent and the current market rate is $750 per month.

My question is: Can I draft a lease agreement at the approved rent but include an additional charge in a separate section for things like HOA fees, parking, and furnishings to make up for the $750 difference?

I’d really appreciate any feedback or guidance. Thank you!

[Michael Fraulo]

Tough situation. In most rent-controlled areas, adding extra charges to get around the regulated rent, like for parking, furnishings, or HOA, can get you in trouble. Even if you list them separately, the city might still count them as part of the rent.

If those extras are truly optional and not required to live there, maybe there’s a way, but it’s risky. I’d talk to a local landlord-tenant attorney or call the rent control office before moving forward. Better to be safe than deal with rent rollbacks or fines later.