Can a landlord charge an illegal rental application fee in New York?

What the Law Says

New York strictly limits rental application fees to prevent exploitation and promote housing fairness.

Under New York Real Property Law § 238-a, landlords and their agents are prohibited from charging any fee for processing a rental application — except for the actual cost of a tenant’s credit report, up to a maximum of $20.

If a landlord does not obtain a credit report, they must refund 100% of any fee collected. They must also provide the applicant with a written receipt that includes the amount paid, the purpose, and the name of the credit reporting agency (if applicable).

This law applies to all residential rental properties in New York State and took effect on June 14, 2019, as part of the Housing Stability and Tenant Protection Act.

Statutory Text

No person shall charge or collect any fee for the processing of an application for residential rental housing, except for the actual cost of obtaining a consumer credit report, not to exceed twenty dollars.

— Real Property Law § 238-a(1) — Prohibition on application fees

Statutory Text

If no consumer credit report is obtained, the fee shall be refunded in full to the applicant.

— Real Property Law § 238-a(2) — Refund requirement

Statutory Text

The person collecting the fee shall provide the applicant with a written receipt specifying the amount of the fee, the purpose for which it is collected, and, if applicable, the name of the consumer reporting agency.

— Real Property Law § 238-a(3) — Receipt requirement

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