As a rental agent, it's important to be aware of the laws and regulations that govern the rental industry in New York State. Being unaware or non-compliant with housing regulations can leave you and your clients open to fines, legal disputes, and potentially even jail time.

*Nothing in this article is legal advice. We recommend you consult with a lawyer in your state to ensure compliance with any laws.*

Section 238-a

One specific section of the law that rental agents should be aware of is Section 238-a, which deals with fees that landlords can charge before or at the beginning of a tenancy. Section 238-a(a) states that landlords, lessors, sub-lessors, or grantors cannot demand any payment, fee, or charge for processing, reviewing, or accepting an application, or demand any other payment, fee, or charge before or at the beginning of the tenancy, except for background checks and credit checks.

It's important to note that there are some exceptions to this rule, such as entrance fees charged by continuing care retirement communities, senior residential communities with an offering plan, and independent retirement communities that offer personal emergency response, housekeeping, transportation, and meals to their residents. As a rental agent, you should be aware of these exceptions and ensure that any fees charged are within the legal limits.

Furthermore, Section 238-a(b) of the New York housing law allows landlords to charge a fee to cover the costs of conducting background checks and credit checks. However, the total fee charged cannot exceed the actual cost of the checks or $20, whichever is less. The landlord must also provide the potential tenant with a copy of the background check or credit check and the receipt or invoice from the entity conducting the checks. If the potential tenant provides a copy of a background check or credit check conducted within the past thirty days, the landlord must waive the fee.

As a rental agent, it's important to ensure that landlords are following the rules laid out in the New York housing law. You should make sure that any fees charged are within the legal limits and that tenants are provided with all necessary documentation. By following the law, you can ensure that your clients are protected and that your business is operating legally.

Section 227-f

Another important housing law in New York State is § 227-f, which prohibits landlords from denying a rental or lease to a potential tenant on the basis of the tenant's past or pending involvement in a landlord-tenant action or summary proceeding under article seven of the real property actions and proceedings law. This means that a landlord cannot refuse to rent or offer a lease to a potential tenant simply because they were involved in a prior dispute with a landlord.

Furthermore, if a landlord requests information from a tenant screening bureau or inspects court records related to a potential tenant and subsequently refuses to rent or offer a lease to that tenant, there is a rebuttable presumption that the landlord is in violation of this section. A rebuttable presumption means that a judge will be obligated to assume that you are in violation of the law, unless the evidence presented can convince them otherwise. Essentially, requesting this info prior to rejecting an applicant is enough evidence to convince the court that you are in violation of this law.

If the attorney general believes that any person, corporation, or association has violated this section, they may bring an action or special proceeding in the supreme court to seek a judgment enjoining the continuance of the violation and imposing a civil penalty of not less than $500 but not more than $1,000 for each violation.

As a rental agent, it is important to be aware of this law and to ensure that landlords do not violate it when considering potential tenants. Denying a tenant based on past disputes could result in legal action and penalties. It is essential to evaluate potential tenants based on objective criteria such as income, credit history, and references, rather than their involvement in prior disputes.

Full Statutes

Here are the full statutes discussed here for you to read:

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238-a paragraphs a and b

(a) Except in instances where statutes or regulations provide for a payment,  fee  or charge, no landlord, lessor, sub-lessor or grantor may demand any payment, fee, or charge for the processing, review or acceptance of an application, or demand  any  other  payment,  fee  or  charge before  or at the beginning of the tenancy, except background checks and credit checks as provided by paragraph (b) of this subdivision, provided that this subdivision shall  not  apply  to  entrance  fees  charged  by continuing  care  retirement  communities  licensed  pursuant to article forty-six or forty-six-A of  the  public  health  law,  assisted  living providers  licensed pursuant to article forty-six-B of the public health law, adult care facilities licensed pursuant to  article  seven  of  the social  services law, senior residential communities that have submitted an offering plan to the attorney general, or not-for-profit  independent retirement  communities  that  offer personal emergency response, house-keeping, transportation and meals to their residents.

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(b) A landlord, lessor, sub-lessor or grantor may charge a fee or fees to reimburse costs associated with conducting  a  background  check  and credit  check, provided the cumulative fee or fees for such checks is no more than the actual cost of the background check and   credit check  or twenty  dollars, whichever is less, and the landlord, lessor, sub-lessor or grantor shall waive the fee or fees if the potential tenant  provides a  copy  of a background check or credit check conducted within the past thirty days. The landlord, lessor, sub-lessor or grantor may not collect the fee or fees unless  the  landlord,  lessor,  sub-lessor  or  grantor provides  the  potential  tenant  with a copy of the background check or credit check and the receipt or invoice from the entity  conducting  the background check or credit check.

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227-f

1. No landlord of a residential premises shall refuse to  rent  or offer  a  lease  to  a  potential tenant on the basis that the potential tenant was involved in a  past  or  pending  landlord-tenant  action  or summary  proceeding under article seven of the real property actions and proceedings law.  There shall be a rebuttable presumption that a  person is  in  violation  of  this section if it is established that the person requested information from a  tenant  screening  bureau  relating  to  a potential  tenant  or  otherwise  inspected  court records relating to a potential tenant and the person subsequently refuses to rent or offer  a lease to the potential tenant.

2. Whenever the attorney general shall believe from evidence satisfactory  to him or her that any person, firm, corporation or association or agent or employee thereof has violated subdivision one of this  section, he or she may bring an action or special proceeding in the supreme court for  a  judgment  enjoining  the continuance of such violation and for a civil penalty of not less than five hundred dollars, but not  more  than one thousand dollars for each violation.