Raising rents in rent stabilized units through IAI in NYC

[Ed Nunez]

I am evaluating a property with 6 rent stabilized units in the Bronx. The upside is in potentially raising rents and I'm wondering if anyone has done this. Based on my research (http://www.nyshcr.org/Rent/factsheets/orafac26.pdf) rents can be increased through Individual Apartment Improvements (IAI). There are certain criteria such as new floors, appliances, etc., but I am looking for some clarification. I understand that rents can be increased by 1/40th of the renovation cost. Does that increase apply to the monthly or annual rent? Also, has anyone tried this and How was the experience? Did you still require approval from the city? If there is a tenant in place, increasing the rent can only be done with tenants consent, have you found tenants to be reasonable and cooperative? 

I'm sure there is a discussion on this topic but can't find it. I would appreciate any insight or link to an existing discussion on this topic. 

Thank you