New York Tenant Screening Laws: What Landlords Can and Cannot Do
New York is one of the most regulated screening states – a strict application-fee cap, a one-month deposit limit, and statewide source-of-income protection. Here is how to screen legally in 2026.
Tenant screening in New York is the opposite of a light-touch state. The Housing Stability and Tenant Protection Act of 2019 reshaped what landlords can charge and how they must treat applicants, layering tight state rules on top of the federal Fair Credit Reporting Act and fair housing law.
This guide walks through the application-fee cap, the deposit limit, source-of-income protection, and adverse action. If you are new to the mechanics, our overview of how to screen tenants step by step pairs well with the New York-specific rules below.
Video: a plain-language walkthrough of New York tenant screening, application fees, deposits, and adverse action.
Key Takeaways: New York Tenant Screening Laws
- Application fees are capped. Under Real Property Law 238-a a landlord may charge no more than the actual cost of a background or credit check, up to a twenty-dollar ceiling.
- Portable reports must be honored. If an applicant provides their own recent background and credit check, the landlord must waive the fee entirely.
- Deposits are limited to one month’s rent and must be returned within fourteen days with an itemized statement.
- Source of income is protected statewide. A landlord generally cannot reject an applicant for paying rent with a voucher.
What New York Law Lets You Screen
New York landlords may still screen for the things that predict whether rent gets paid – credit, rental and payment history, income, and public records – provided the applicant gives written authorization and the process is even-handed. What changed in 2019 is the cost and the conditions around that screening, not the right to do it.
Set objective standards and apply them identically to every applicant. Our guide to the minimum credit score for renting explains how to set a threshold that screens for risk without screening out a protected class – which matters more in a state with broad protections.
The Twenty-Dollar Application-Fee Cap (RPL 238-a)
This is the rule that catches landlords off guard. Under Real Property Law 238-a, a landlord may charge an application fee no greater than the actual cost of the background or credit check, and in no event more than twenty dollars. If you charge a fee, you must provide an itemized receipt or a copy of the screening results.
The cap is statewide and applies to most residential rentals. Charging a flat, higher application fee – common in other states – is simply not lawful in New York, and doing it exposes you to penalties.
Honor portable screening reports
If an applicant gives you their own background and credit check completed within the prior thirty days, New York requires you to waive the application fee entirely – not reduce it to the cap, but waive it.
Security Deposits: One Month, Returned in Fourteen Days
The 2019 reforms also capped security deposits. A landlord may not collect more than one month’s rent as a deposit, and the deposit must be returned within fourteen days after the tenant moves out, accompanied by an itemized statement of any deductions for damage beyond normal wear and tear.
Miss the deadline or fail to itemize, and the landlord can forfeit the right to keep any part of the deposit. Our deeper look at New York security deposit laws covers the inspection rights and itemization rules in detail.
Source of Income Is a Protected Class
New York protects source of income statewide under the Human Rights Law. That means a landlord generally cannot refuse to rent to, or refuse to consider, an applicant simply because their rent would be paid in whole or part with a Housing Choice Voucher or other lawful assistance.
You may still apply the same income, credit, and rental-history standards to a voucher holder that you apply to everyone else – the protected trait is the income source, not the screening criteria. For the full list of protections, see our Fair Housing Act guide for landlords.
Criminal History, Credit, and Eviction Records
New York is tightening the use of criminal history in housing, and HUD’s 2016 guidance already warned that blanket criminal bans can create a disparate-impact violation under the federal Fair Housing Act. The defensible approach is an individualized assessment tied to the offense, how recent it is, and safety – never a flat no-record rule.
Tenant-friendly rules also limit reliance on past eviction filings, so lean on objective, consistently applied credit and income standards. You can read how eviction filings arise on our New York eviction notice laws page.
The FCRA: Consent and Adverse Action
On top of New York’s rules, the federal Fair Credit Reporting Act governs every screening report. You need a permissible purpose and written authorization before ordering the report, and you must send an adverse action notice if the report drives a denial, a higher deposit, or a co-signer demand.
The notice must name the reporting agency, state that it did not make the decision, and explain the applicant’s right to a free copy and to dispute it. Our FCRA compliance guide and the companion walkthrough of the adverse action notice spell out the requirements.
Fair Housing Compliance for New York Landlords
New York’s protected classes are among the broadest in the country, and they stack with the federal Fair Housing Act. The discipline is the same but the stakes are higher: uniform criteria, uniform application, and documentation showing you treated every applicant by the same yardstick.
Publish your criteria before you advertise, screen every applicant against the identical standard, and keep the file. In a state this protective, an inconsistent process is the fastest route to a complaint.
A Compliant New York Screening Process
Turn the rules into one repeatable sequence. First, publish objective criteria. Second, if you charge a fee, keep it within the RPL 238-a cap, give the itemized receipt, and waive it for a valid portable report. Third, get written consent and order the report. Fourth, evaluate every applicant against the identical standard, including voucher holders. Fifth, if you decline based on a report, send the adverse action notice promptly.
Income verification still matters; our guide to verifying tenant income shows how to confirm ability to pay without singling anyone out. Run the same steps for every applicant and your file will tell a clean, consistent story.
Common Mistakes That Create Liability
The recurring New York errors are charging an application fee above the cap, failing to waive the fee for a portable report, over-collecting on the deposit, missing the fourteen-day return, and rejecting voucher holders. Each one is a direct violation of a specific 2019 rule, and each is easy to prevent with a written, compliant process.
The reforms are specific – so is the liability. New York wrote its screening rules down with precision, which means a violation is easy to prove. Build the cap, the waiver, the deposit limit, and source-of-income compliance into your standard workflow.
Documentation and Recordkeeping in New York
New York’s precision cuts both ways: because the rules are specific, your records either prove compliance or expose the gap. For every applicant you charge, keep the itemized receipt or copy of the screening results that Real Property Law 238-a requires, and keep a log of every portable report you were offered and the fee you waived in response. That waiver log is the single best defense against a claim that you charged when you should not have.
On the deposit, retain the itemized statement delivered within the fourteen-day window, the move-in and move-out condition records, and proof of any inspection you offered, since New York gives tenants inspection rights tied to the deposit. Dated photographs and repair invoices convert a disputed deduction into a documented one, and the short return window leaves no room for reconstructing the file after the fact.
Apply one retention policy to every applicant, approved or denied. A consistent multi-year file of applications, itemized fee receipts, waiver logs, screening results, adverse action notices, and deposit accountings is what answers a Division of Human Rights inquiry or a fee complaint. In a state with broad protected classes, the record of identical treatment is as important as any single decision in it.
Do
- ✓Publish your written screening criteria before you advertise, and apply them to every applicant.
- ✓Get written authorization before pulling any report, and keep the signed consent on file.
- ✓Send an FCRA adverse action notice on every denial that rests on a consumer report.
- ✓Assess any criminal record case by case, weighing the offense, how recent it is, and safety.
- ✓Handle the security deposit and its return exactly as the state statute requires, and document it.
Avoid
- ✕Charge uneven application fees, or collect a fee with no genuine screening behind it.
- ✕Treat a permissive state as a lawless one – the FCRA and federal fair housing law always apply.
- ✕Apply a blanket ban on any criminal record, which risks a disparate-impact violation.
- ✕Improvise your standards applicant by applicant instead of following one written rubric.
- ✕Skip the deposit paperwork the statute requires, from itemization to any required notices.
New York Tenant Screening Laws: FAQ
Can a New York landlord run a background check on an applicant?
Yes. With written authorization you may obtain a consumer report covering credit, rental history, income, and criminal convictions. The federal Fair Credit Reporting Act requires a permissible purpose and consent, and New York adds its own limits on fees and on the use of certain records.
How much can a New York landlord charge for an application fee?
Under Real Property Law 238-a, no more than the actual cost of the background or credit check, capped at twenty dollars. If you charge a fee you must provide an itemized receipt or a copy of the screening results.
Does a New York landlord have to accept a portable screening report?
Effectively yes. If the applicant provides their own background and credit check completed within the prior thirty days, the landlord must waive the application fee entirely.
What is the maximum security deposit in New York?
One month’s rent. The deposit must be returned within fourteen days after the tenant moves out, with an itemized statement of any deductions.
Is source of income a protected class in New York?
Yes. New York protects source of income statewide under the Human Rights Law, so a landlord generally cannot reject an applicant solely because rent would be paid with a voucher or other lawful assistance.
Can a New York landlord deny an applicant for a criminal record?
Only with care. HUD’s 2016 guidance and New York’s tightening rules make blanket bans risky, so use an individualized assessment tied to the offense, how recent it is, and safety rather than a flat no-record policy.
Does a New York landlord have to send an adverse action notice?
Yes. If a denial or other adverse decision rests in any part on a consumer report, the FCRA requires an adverse action notice naming the reporting agency and explaining the right to a free report and to dispute it.
Did the 2019 HSTPA change tenant screening in New York?
Substantially. It capped application fees, required waiving the fee for portable reports, limited security deposits to one month, and tightened deposit returns – the core of what makes New York screening different.
How long should a New York landlord keep tenant screening records?
Keep applications, signed authorizations, screening results, adverse action notices, and deposit accountings for every applicant – approved or denied – for several years. In New York, a consistent retention policy is the evidence that you treated every applicant by the same standard if a fair housing or deposit dispute later arises.
When must a New York landlord send the adverse action notice?
Send it promptly whenever a consumer report contributes to an adverse decision – a denial, a higher deposit, or a co-signer requirement. The FCRA notice must name the reporting agency, state that it did not make the decision, and tell the New York applicant how to get a free copy of the report and dispute any error.
Related New York and Screening Guides
- Tenant screening laws by state – compare New York to the rest of the country.
- New York security deposit laws – deductions, itemization, and the return deadline.
- New York eviction notice laws – notice periods and the eviction timeline.
- New York rent increase laws – notice rules for raising the rent.
- New York late fee laws – what you can charge for late rent.
- How a tenant background check works – what a report includes.
- New York habitability laws – your maintenance obligations as a landlord.
Screen New York Applicants the Compliant Way
Order FCRA-ready credit, criminal, and eviction reports and keep your New York process consistent from application to decision.
Published by Tenant Screening Background Check · Editorial Team
Established 2004. Our editorial team has spent two decades helping landlords and property managers run lawful, FCRA-compliant tenant screening across all 50 states. We translate state landlord-tenant codes and federal screening rules into processes you can actually follow.
Legal Disclaimer
This article is for general informational purposes only and is not legal advice. New York and federal laws change, and how they apply depends on your specific facts. Before acting on any screening, fee, deposit, or fair housing question, consult a licensed attorney in New York. Reading this page does not create an attorney-client relationship.
