... we had a verbal agreement that heating would be included in the rent and that the rent would increase by $50 each year. ...
To be legally binding, agreements regarding real estate must be in writing.
If the apartment is unregulated and exempt from Good Cause Eviction, am I basically left with only two options: accept the rent increase or move out? ...
Welcome to the real world, oh pampered one. BTDTGTTS, and didn't whine about it. We just moved to a place we could afford. Of course, NYC's rent control laws have constricted the city's housing supply and thereby jacked up the prices of the housing that is available, so enjoy the consequences of rent control.