Tenant Screening Regulations in New York: Legal Considerations for Landlords

Landlords must be aware of tenant screening laws in the ever-changing state of New York in order to maintain equitable and compliant practices.

These regulations, which specify standards for credit reports, background checks, and other screening criteria, safeguard the rights of both landlords and tenants.

This in-depth manual will examine all the important facets of New York’s tenant screening regulations, giving landlords the knowledge they need to successfully manage the renting process.

Relevant Takeaways From New York’s Tenant Screening Legislation

Cooperation with the Fair Housing Act: Tenant screening laws in New York necessitate conformity to federal Fair Housing Act regulations. You must apply your screening criteria uniformly to all applicants and refrain from asking any questions that would disclose an applicant’s membership in a protected class.

Eviction history: Although you may take it into consideration, it’s crucial to assess its context. An application should not be automatically disqualified for an eviction, especially if there were extenuating circumstances involved, such as financial difficulties during the COVID-19 pandemic.

Application fees: Landlords in New York are permitted to charge an application fee, but the maximum amount is $20, or the actual cost of the credit and background checks, whichever is less.

Maximum amount of security deposit: A rental unit’s security deposit cannot be more than one month’s worth of rent.

Disclosure of the qualifying standards: Give potential tenants a clear explanation of your screening requirements up front. This includes benchmarks that assist maintain fairness and transparency in the screening process, such as minimum credit scores, income ratios, and rental history requirements.

Written consent for background checks: In order to abide by legal requirements, you must get an applicant’s written consent before performing any credit or criminal history checks.

It also honors your prospective tenants’ privacy: When to look at a criminal history: Only after making a conditional housing offer to an applicant can you inquire about their criminal background.

Adverse action notices: Under New York law and the Fair Credit Reporting Act (FCRA), you are required to give an applicant an adverse action notice if you decide not to rent to them based on their screening report.

This notification must to provide the rationale behind your rejection as well as details on the applicant’s access to and study of the report that affected your choice.

New York: Fair Housing and Tenant Selection

Because it is illegal for landlords to use information about an applicant’s protected class—whether revealed directly or indirectly—in their decision-making process, fair housing rules in New York shield applicants against discrimination. Hence, you are not permitted to inquire about or base tenancy on any of the following:

Status of disabilities
Family status, such as having children under the age of 18
age
Relationship status
Status in the military
Race or color
Ethnicity or national origin
Spirituality
Identification by sex or gender

Procedures for New York tenant screening

Selecting the best tenants while adhering to state laws and regulations in New York requires taking several crucial stages in the tenant screening process. Here’s a comprehensive, step-by-step tutorial.

Requirements for Rental Applications

Obtaining all required information is the next stage after you’re prepared to accept applications:

Include areas for personal information (such as name, contact details, and current address), employment history, income information, past renting history, and references.
Asking the applicant about their work history, salary, purpose for moving, and any prior bankruptcies or evictions is a good idea.

Doing Credit and Background Checks

Certain restrictions on what information you can check and when are imposed by New York law:

Background examines: The applicant’s written approval is required. Recall that you can only find out about a criminal background after extending an offer of conditional housing.
Credit checks: Once more, formal permission is needed. Analyze the applicant’s financial history and credit score to determine whether they can reliably pay the rent.
Financial assessments: Examine bank and income statements, confirm employment, and make sure the candidate satisfies your requirements for finances.

Legal restrictions

During the screening procedure, several legal boundaries must be adhered to:

Prohibited questions: Refrain from asking questions on race, religion, national origin, sex, handicap, or family status as they could disclose protected class status under fair housing rules.
Application fees: The maximum amount you can charge is $20, or the actual cost of the credit and background checks.
Notices of adverse actions: If an application is rejected due to screening findings, be sure to give the applicant a detailed explanation and instructions on how to get a copy of the report that was considered in making the decision.

To Conclude

Landlords must be aware of and abide by New York’s tenant screening rules in order to guarantee equitable and compliant procedures. You can efficiently screen tenants while preserving your rights and obligations.

Recall to stay informed about any changes to the law and, if necessary, obtain legal counsel. All parties involved can have a pleasant and peaceful rental experience if you make well-informed decisions and follow the law.

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