This question comes up all the time, especially when I am working with a buyer who is looking to purchase a property that has “rent regulated” apartments, a term that encompasses both rent controlled and rent stabilized apartments.
The New York State Division of Housing and Community Renewal (DHCR) is responsible for the enforcement of the rent regulation laws, and can reduce rents and/or penalize owners that break them.
Rent Control
The older of the two rent regulation laws, rent control generally applies to buildings constructed before 1947. It limits the amount an owner can charge tenants for rent, restricts their ability to 
evict tenants, and ensures that they provide their tenants with essential services.
A maximum base rent (MBR) is established for each rent controlled apartment and if the landlord provides essential services and has no violations, every two years the rent can be adjusted up to 7.5 percent to reflect changes in operating costs. Tenants can challenge the rent adjustments if they are not receiving the services they are entitled to.
With DHCR approval, rents can also be increased because of increased fuel costs, owner hardship, if the owner increases services or equipment, makes capital improvements to the entire building, or makes improvements to an apartment.
Rent Stabilization
Generally, rent stabilization covers buildings built after 1947 and before 1974, and apartments removed from rent control. There are approximately one million rent stabilized apartments in New York City.
Rent stabilization also limits the amount an owner can charge tenants for rent, restricts their ability to evict tenants, and ensures that they provide their tenants with essential services. Once a year the Rent Guidelines Board sets rates for rent increases in stabilized apartments.
Like rent control, rents for a rent stabilized apartmnet may be reduced if the owner fails to provide required services.
So, as you can see, there are not a lot of differences between rent control and rent stabilization. For even more information about rent control and rent stabilization, go to DHCR Factsheets.
