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Contents
This article provides general information and is not legal advice. For accuracy and specific guidance on landlord-tenant laws, consult an attorney before making any decisions or taking action.
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Landlord-tenant relationships can be unpredictable and in the worst-case scenario lead to unpaid rent, damaged property, legal issues, and financial loss for property owners.
Tenant screening in New York is a way for landlords to avoid these unnecessary dramas. They are allowed to evaluate prospective tenants using background checks in New York for rental applications. However, there are specific New York tenant screening laws landlords must understand to ensure a fair and compliant rental process.
This article will cover tenant screening laws in New York 2024 from application requirements to background checks. These laws outline what information can be collected, how it can be used, and the limits on fees for background checks.
By following these guidelines, landlords can reduce legal risks and ensure fair treatment of tenants during the application process.
There are several state and federal laws that regulate tenant screening New York to protect both tenant rights and landlords interests. Landlords need to understand these laws to ensure compliance and promote a smooth screening process.
Here are some of the key tenant screening laws New York:
The federal Fair Housing Act prohibits landlords from discriminatory practices during tenant screening against protected classes. Protected characteristics include race, color, religion, national origin, sex, disability, and familial status.
Additionally, the New York State Human Rights Law and New York City Human Rights Law expanded these protections. These acts prohibit discrimination based on age, marital status, military status, gender identity or expression, and lawful source of income.
Landlords must ensure compliance with these acts by disclosing and applying their screening criteria consistently across all applications. Also, they are not allowed to ask direct or indirect questions that could reveal a person’s protected class during tenant background checks in New York.
The Fair Chance for Housing Act is one of the latest tenant screening laws in New York 2024 designed to combat housing discrimination against individuals with criminal records. This legislation was passed by the City Council on December 20, 2023, and takes effect on January 1, 2025.
Under this act, landlords can only consider an applicant's criminal history after assessing their other qualifications. They are also limited to reviewing criminal records from the past five years for felonies and three years for misdemeanors, though this does not apply to sex offenses.
If an applicant is denied housing due to their criminal history, landlords must provide a written explanation.
It's important to note that this law does not apply to two-family owner-occupied homes, rooms in owner-occupied housing, or situations where laws require exclusion based on criminal history.
New York provides robust protections against discrimination based on source of income for prospective tenants.
For example, landlords cannot deny rental applications due to income from government assistance, disability benefits, unemployment insurance, or child support. Instead, they must assess income based on its stability and sufficiency, treating Section 8 vouchers like employment income.
Additionally, imposing additional requirements or refusing applicants based on subsidies is illegal and may result in severe penalties.
Unlike other states in the U.S., screening and application fees are regulated under New York’s tenant screening laws, as outlined in the N.Y. Real Prop. Law § 238-A.
Landlords are allowed to charge only the actual cost of background checks or a maximum of $20, whichever is lower. This cap prevents excessive fees and ensures transparency in the tenant screening process. If the fee exceeds $20, landlords must provide an itemized receipt detailing the charges.
Additionally, landlords cannot impose additional application-related fees, protecting applicants from inflated costs. It's important to note that all screening fees are considered non-refundable, regardless of the application outcome.
Landlords in New York are encouraged to provide clear and written disclosures of their tenant screening criteria. This should include specific requirements such as credit scores, income ratios, and rental history standards, ensuring compliance with New York tenant screening laws.
By being transparent about these benchmarks, landlords can foster a fair application process and minimize the risk of discrimination or misunderstandings.
In accordance with the New York tenant screening laws 2024, landlords are required to obtain explicit written consent from applicants before conducting any consumer reports, including credit histories and criminal background checks. This legal obligation, governed by the Fair Credit Reporting Act (FCRA), ensures that applicants are fully informed about how their personal information will be utilized during the tenant screening process.
The written consent form must clearly specify the types of consumer reports that will be accessed. Landlords should detail whether they will review:
It is crucial that the consent form is straightforward and easy to understand. Additionally, it should include the name of the screening service provider and provide a comprehensive description of the data being reviewed.
Moreover, the consent form must inform applicants of their rights under the FCRA. This includes their right to dispute any inaccuracies in their background check and to receive a copy of the report if they are denied rental based on its findings.
Tenant screening in New York involves several key steps to ensure compliance with state laws and to find suitable tenants. Below is an overview of New York tenant screening.
Gather applications from all prospective tenants, including essential information such as contact details, employment history, and rental history.
Before conducting background checks in New York for rental, secure written consent from applicants for credit and criminal history checks, as required by law.
Perform thorough checks on credit history, criminal records, and eviction history. Ensure that these background checks in New York for rental comply with both state and federal fair housing laws. A good strategy would be to employ online screening services when carrying out tenant background checks in New York.
After reviewing countless online tenant screening services, we discovered that the accuracy and comprehensiveness of generated reports are the most important features to look out for. Other factors to consider when choosing an ideal online tenant screening service are, cost, data security, and the speed of report delivery.
Landlord Studio is a standout option, providing a thorough tenant screening report for New York that includes credit scores, rental history, background checks, and eviction records. The best part is that reports can be generated in as little as 30 minutes, with prices starting at $45.
Assess applications based on consistent criteria, such as income verification and rental history, to maintain fairness and legal compliance.
If an application is denied, provide a written notice explaining the reasons for the denial and include contact information for the screening company used.
The best way to go about New York tenant screening is for landlords to adopt a consistent and legally compliant approach to conducting background checks in New York for rental. They should focus on verifying reliability and the ability to pay rent on time, ensuring tenants have a stable financial history.
Reliable property management software, like Landlord Studio, can streamline this process while ensuring compliance with tenant screening laws in New York in 2024. Landlord Studio provides cost-effective screening solutions that emphasize legal compliance, comprehensive reporting, and quick turnaround times.
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