New York Rental Application Fees: The Actual-Cost and $20 Limit
The Rule
New York Real Property Law §238-a prohibits a residential landlord from demanding an application payment except reimbursement for the cost of a background check and credit check. The cumulative fee may not exceed the actual cost or $20, whichever is less.
The statute speaks in terms of the fee charged to a potential tenant and the landlord's actual screening cost. It does not supply a special household formula.
Multiple-Applicant Workflow
Use counsel's direction for a household with multiple applicants. Document the actual screening cost attributable to each person charged, and never use a per-household or per-person label to evade the limit.
Applicant-Provided Reports
The landlord must waive the fee when the potential tenant provides a background check or credit check conducted within the previous 30 days. The landlord must give the potential tenant a copy of any background or credit check it obtains and the receipt or invoice from the reporting entity.
Compliant Workflow
- Disclose that the charge is only reimbursement for the permitted checks.
- Accept a qualifying applicant-provided report and charge no screening fee in that circumstance.
- Otherwise charge no more than the documented actual cost and never more than $20.
- Give the applicant the report copy and the reporting entity's invoice or receipt.
- Keep the disclosure, report date, invoice, amount charged, and delivery record.
Do not add processing, administrative, convenience, or similar labels to collect more than the statute permits.
Source
- New York State Senate, Real Property Law §238-a, fetched and read August 7, 2026.
ARTICLE_ID: landlords-115
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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