What is exempt from rent control in East Orange, NJ?

dwellings with 3 or fewer units; motels, hotels, licensed rooming houses; dwellings with 5 or fewer units (Protected Tenancy Act purposes); HUD-subsidized developments; developments with HUD-insured mortgages; first-time rentals. New construction is also exempt statewide for 30 years from certificate of occupancy under N.J.S.A. 2A:42-84.2.

East Orange rent control: maximum rent increase (2026)

Essex County — Chapter 218, Rent Control and Conversions. Full ordinance text ↗

Summary

Cap formula

Different caps apply by tenancy type: for a new tenant, the lesser of a 5% increase over the prior tenant's rent or the CPI percentage change (3 months before lease end vs. 3 months before lease start); month-to-month/week-to-week tenants: up to 4% of the existing rent; year-to-year tenants: up to 4% per 12-month period the lease has been in effect; qualified senior or disabled tenants: up to 2% per 12-month period.

Frequency

For periodic tenants (month-to-month/week-to-week) with a lease term under one year, an increase is capped at 4% of the existing rent per notice of increase; for year-to-year or longer-term tenants, an increase is capped at 4% of the prior rent for each 12-month period the lease has been in effect (2% for qualified senior/disabled tenants). No increase of any amount may be demanded unless the landlord has a current rent roll on file; violation bars any increase from that tenant for 12 months (§218-10(A), (B)).

Notice required

60 days — Landlords must provide 60 days' written notice before an increase takes effect, including specific tenant and rent information.

Who's covered

Buildings with 4 or more units

Exemptions

dwellings with 3 or fewer units
motels, hotels, licensed rooming houses
dwellings with 5 or fewer units (Protected Tenancy Act purposes)
HUD-subsidized developments
developments with HUD-insured mortgages
first-time rentals
new construction (30 yrs from certificate of occupancy, N.J.S.A. 2A:42-84.2)

Vacancy decontrol

Vacancy decontrol until re-rental, subject to inspection standards and tiered application fees based on property size.

Registration

Annual rent roll filing required by September 1 with a $100 fee; rent changes must also be registered within 30 days.

Surcharges

Capital improvement recovery allows 50% cost recovery over five years; hardship increases require demonstrated financial need under Board-approved calculation formulas.

Penalties

Fines between $300-$2,000 per day plus potential imprisonment up to 120 days.

Status

active

Confidence

high

Last verified

2026-09-23

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Ordinance text

The rental of all units and parking spaces for the first time to a new tenant shall be limited to a rent which includes an increase not to exceed 5% over the last rent paid by the former tenant or the percentage difference between the consumer price index three months prior to the expiration or termination of the lease and three months prior to the commencement of the lease term, whichever is less. [...] For a periodic tenant (i.e., month-to-month, week-to-week) whose lease term is less than one year, said owner, agent or employee of the same shall not demand, receive or accept any rent increase which is greater than 4% of the existing rent at the time the notice of increase is delivered to the tenant. [...] For a year-to-year tenant or for a tenant under a lease term in excess of one year, said landlord, owner or agent of the same shall not seek or demand an increase in rent which exceeds 4% of the prior rent for each twelve-month period that the existing lease has been in effect. [...] For a qualified senior tenant or a disabled tenant, said landlord, owner or agent of the same shall not seek or demand an increase in rent which exceeds 2% of the rent charged during the preceding twelve-month period.Chapter 218, Rent Control and Conversions — https://ecode360.com/9565553

State survey entry

Increase limit: For a new tenant: rate shall be limited to a rent which includes an increase not to exceed 5% over the last rent paid by the former tenant or the percentage difference between the CPI three months prior to the expiration or termination of the lease and three months prior to the commencement of the lease term, whichever is less. For a periodic month-to-month or week-to-week tenant: no greater than 4% of the existing rent. For a year-to-year tenant: no greater than 4% of the prior rent for each twelve-month period that the existing lease has been in effect. Hardship or Capital Improvement increases may be approved by the Rent Control Board
Units covered: 4+
Exceptions: Exception(s) - Dwellings containing 3 or fewer separate units, motels, hotels, licensed rooming houses, dwellings containing 5 or fewer separate units for purposes of the implementation of the Protected Tenancy Act, HUD subsidized developments, developments with HUD-insured mortgages, and first-time rentals. Vacancies Decontrol (until re-rental).

Source: NJ Department of Community Affairs, 2026 Rent Control Survey — nj.gov

Rent board

Division of Rent Leveling · (973) 266-5320 · https://www.eastorange-nj.gov/263/Rent-Leveling

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