NY rental application fees: the $20 cap explained

In New York State, the only fee a landlord can charge you for applying for an apartment is for a background and credit check, and it can be no more than $20 or the check's actual cost, whichever is less. Separate "application," "processing" or "admin" fees are not allowed for most rentals.

The rule is in Real Property Law § 238-a, added in the 2019 rent law changes, and it covers renters statewide, not just in New York City and not just in rent-stabilized apartments. Two extra conditions make it stronger than it looks: the landlord must hand over a copy of the report, and must waive the fee if you bring your own recent report.

What the law says, in plain English

1. No fees to apply, except the check

A landlord may not demand any payment, fee or charge for processing, reviewing or accepting an application, or any other payment before or at the start of the tenancy, except the background and credit check fee and fees that another statute or regulation specifically allows. Rent and the security deposit are handled by other laws; the deposit, for example, is capped at one month's rent under General Obligations Law § 7-108.

2. The check fee is capped at $20 or actual cost

The landlord may pass on the cost of background and credit checks, but the total for all of them combined cannot exceed the actual cost or $20, whichever is less. If the screening company charged the landlord $15, $15 is the maximum. A landlord who runs a credit check and a separate background check still can't go over $20 in total.

3. Bring a recent report and the fee is waived

If you provide a background or credit check done within the past 30 days, the landlord must waive the fee. The landlord can still choose to run its own check; it just can't charge you for it. This is useful if you apply to several apartments in a short period: one report you paid for can save you a fee at each later application.

4. No copy, no fee

The landlord may not collect the fee unless it gives you a copy of the background or credit check and the receipt or invoice from the company that ran it. That copy also lets you spot errors early. See tenant screening reports for how to dispute them.

5. You can't sign these rights away

Any lease or application term that waives or limits § 238-a is void as against public policy.

Allowed vs not allowed

Who the rule does not cover the same way

The statute carves out a few housing types:

• Co-op purchases. A co-op corporation can charge someone who will become a shareholder a fee to cover the managing or transfer agent's processing work, and its background and credit check fees can exceed $20 up to actual cost. This applies to buying shares, not to renting a co-op unit from its owner as a subtenant. Co-ops organized under certain Private Housing Finance Law articles (2, 4, 5 and 11) are excluded from the processing-fee carve-out, and their check fees must be reasonable and approved by the supervising agency.
• Senior and care housing. Entrance fees at continuing care retirement communities, assisted living providers and adult care facilities, and fees at senior residential communities with an offering plan filed with the Attorney General and certain non-profit independent retirement communities, are outside the application fee ban.
• Fees allowed by another law. The ban doesn't override a fee a statute or regulation specifically authorizes.

Common workarounds to watch for

• A "holding deposit" to take the unit off the market. Money demanded before or at the start of the tenancy that is not the check fee, rent or a lawful security deposit is hard to square with the ban. Ask in writing what the payment is for and under what rule, and whether it counts toward your deposit.
• A per-person fee that adds up past $20. The statute caps the fee for an applicant's background and credit checks; it doesn't spell out how it applies to households. If you and a roommate each apply and are each screened, no one should be charged more than $20 (or actual cost) for their own checks.
• Paying a third-party site. If the landlord tells you to pay a screening website directly, it is still a fee for the landlord's check. Treat anything above $20 as a red flag, and ask for your copy of the report and the invoice.
• No copy offered. If you paid and never got the report and invoice, the fee was not collectible. Ask for both, or a refund.

How to get an overcharge back or report it

1. 1

   Ask for a refund in writing

   Email or text the landlord or agent: what you paid, when, the § 238-a limit, and the amount to refund. Keep the receipt and any listing screenshots.
2. 2

   Ask for the report and invoice

   If you paid a check fee and got no copy, request both. Without them, the landlord could not lawfully collect the fee.
3. 3

   Complain to the New York Attorney General

   The AG enforces tenant protection laws. File online at ag.ny.gov/file-complaint or call the AG helpline at (800) 771-7755. The AG cannot act as your lawyer.
4. 4

   In NYC, report undisclosed or broker fees to DCWP

   File an online complaint with the Department of Consumer and Worker Protection if a fee was not disclosed or a broker the landlord hired charged you. Include texts, screenshots and receipts.
5. 5

   Consider Small Claims Court

   For money you paid and want back, Small Claims Court is built for people without lawyers. Bring the receipt, your written refund request and any reply.

Related

See the full list of upfront costs in NYC move-in costs, total yours with the move-in cost calculator, and prepare your paperwork with the application documents checklist. If you were turned down, read application denied: what to do next.