Renting & housing · Your right
Rental application fees in New York: the $20 limit on background and credit checks
Updated By The editorial teamNot reviewed by an attorney — based on the official sources below
In short
Under Real Property Law § 238-a(1), a New York landlord can't charge you a fee to process, review or accept your rental application, or any other fee before or at the start of your tenancy, except for background and credit checks. Those can cost you no more than the actual cost or $20, whichever is less. The landlord must waive it if you provide a background or credit check from the past 30 days, and must give you a copy of the check and the receipt before collecting. Your first month's rent and a deposit of up to one month's rent are allowed. In New York City, a landlord's broker can't charge you a broker fee.
Read on for the details, the exceptions and the sources.
In plain words
- Application fee
- A charge just for applying for an apartment. New York bans it, apart from the limited check fee.
- Background check / credit check
- A report on your rental, court or credit history that a landlord uses to decide on your application.
- Key money
- An extra payment demanded to get or reserve an apartment. It's unlawful.
- Broker fee
- A real estate agent's commission. In NYC, a broker working for the landlord can't charge it to you.
What is it?
Real Property Law § 238-a(1)(a), part of the 2019 Housing Stability and Tenant Protection Act, says that, except where a statute or regulation provides for a payment, no landlord, sublandlord or property manager may demand any payment, fee or charge to process, review or accept an application, or any other fee before or at the beginning of the tenancy, except for background and credit checks. Any lease or agreement that waives this rule is void (§ 238-a(3)).
Separately, a security deposit can't be more than one month's rent (General Obligations Law § 7-108(1-a)(a)).
Who qualifies?
Anyone applying to rent a residential apartment or house in New York State, from any landlord, sublandlord or agent.
Exceptions
- Entrance fees of licensed continuing care retirement communities, assisted living and adult care facilities, senior residential communities with an offering plan filed with the Attorney General, and certain nonprofit independent retirement communities (§ 238-a(1)(a)).
- Co-ops buying in: a cooperative may charge a prospective shareholder fees to pay its managing or transfer agent, and background and credit check fees above $20 at actual cost (§ 238-a(1)(a)–(b)). Co-ops under certain state housing finance programs have extra limits.
- Payments a statute or regulation specifically provides for are outside the ban (§ 238-a(1)(a)).
How much?
For background and credit checks combined: the actual cost or $20, whichever is less (§ 238-a(1)(b)). Nothing at all if you provide a copy of a background or credit check done within the past 30 days.
How is it calculated?
- The $20 limit is cumulative: it covers all background and credit check fees together, not $20 for each report.
- If the check actually cost less than $20, you pay only the actual cost.
- The landlord can't collect anything unless they give you a copy of the background or credit check and the receipt or invoice from the company that ran it.
What documents do you need?
- A copy of any background or credit check done in the past 30 days, to get the fee waived
- Receipts for anything you paid
- The listing and any fee disclosure
- Messages showing what the landlord or agent demanded
How do you get it?
Offer your recent background or credit check before you pay. If a landlord or agent asks for an 'application fee', 'holding fee' or 'admin fee', point to Real Property Law § 238-a(1) and offer to pay only a lawful check fee. According to DHCR Fact Sheet #9, demanding a deposit or extra charge to reserve an apartment (often called key money) is unlawful.
In New York City, the FARE Act, effective June 11, 2025, bars brokers who represent the landlord, including brokers listing the apartment with the landlord's permission, from charging you a broker fee. Landlords and their agents must disclose in listings and rental agreements any other fees you'll have to pay. The NYC Department of Consumer and Worker Protection enforces it.
What if they refuse?
- Ask in writing for a refund of anything above the lawful check fee, citing § 238-a.
- If they don't refund it, you can file in small claims court.
- You can complain to the Attorney General's office; for a rent-stabilized apartment, DHCR may treat certain unlawful fees, such as an owner-affiliated broker's fee, as a rent overcharge.
- In NYC, report broker fees charged in violation of the FARE Act to the Department of Consumer and Worker Protection.
Deadlines
- A background or credit check you supply must have been done within the past 30 days (§ 238-a(1)(b)).
- Ask for a refund promptly; small claims and other lawsuits have time limits.
Figures that change
- Maximum fee for background and credit checks: $20 or actual cost, whichever is less (as of 2026-10-30; N.Y. Real Property Law)
- Age of a check the tenant can supply to avoid the fee: Done within the past 30 days (as of 2026-10-30; N.Y. Real Property Law)
Frequently asked questions
Can a landlord charge a 'holding deposit' to take the apartment off the market?
Not as an extra fee. Section 238-a(1)(a) bars any fee before or at the start of the tenancy beyond the check fee, and DHCR's Fact Sheet #9 describes charges to reserve an apartment as unlawful key money. A security deposit of up to one month's rent is a different, allowed payment.
Each roommate was charged $50 for a credit check. Is that legal?
No. For each potential tenant, all background and credit check fees together can't exceed the actual cost or $20, whichever is less, and the landlord must give you a copy of the report and the receipt before collecting (§ 238-a(1)(b)).
Do I still pay a broker in New York City?
Only if you hired the broker yourself. Under the FARE Act, a broker representing the landlord can't charge you a fee.
Want your own situation checked?
This page is general. Describe what happened, attach the letter or document you received, and get a free first answer — then, if you want, a full check against New York and federal law and a letter ready to send.
Check my situation — freeOfficial sources
This page was written from the sources below. “Checked” is the date the source was last opened and read.
- N.Y. Real Property Law (opens in a new tab)New York State Senate — Open Legislation (official text of the Consolidated Laws) · § 238-a(1)(a)–(b), (3) · Checked: October 30, 2026No application or move-in fees, the $20/actual-cost cap on check fees, the 30-day waiver, exceptions, waivers void
- N.Y. General Obligations Law (opens in a new tab)New York State Senate — Open Legislation (official text of the Consolidated Laws) · § 7-108(1-a)(a) · Checked: October 30, 2026Security deposit limited to one month's rent
- Fact Sheet #9: Renting an Apartment — Security Deposits and Other Charges (opens in a new tab)New York State Homes and Community Renewal (Division of Housing and Community Renewal) · Checked: October 30, 2026Key money unlawful; NYC FARE Act on broker fees; DHCR overcharge for owner-affiliated broker fees
- Small Claims — New York State Unified Court System (opens in a new tab)New York State Unified Court System — CourtHelp · Checked: October 30, 2026Recovering unlawful fees in small claims court
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This page is general information based on the official sources listed, current as of the update date. It is not legal advice and does not replace a review of your own situation; if a case is already in court, a deadline is close, the amount is large, or there are criminal, immigration or family-law consequences, talk to a lawyer or legal aid.