In June, state lawmakers passed the Housing Stabilization and Tenant Protection Act of 2019, instating into law the most tenant-friendly provisions the City has ever seen. In our previous article, Top 5 Impacts of New NYC Rent Laws, we covered some of the major impacts, but the laws also instituted a number of restrictions and caps on fees and deposits. Here is the low-down:
1. Application fees may only be charged by condos. Market rate and rent regulated apartments as well as co-ops may no longer charge an application fee.
2. Credit check fees are capped at $20 for all housing types, and must be waived entirely if the renter provides their own credit report generated in the past 30 days.
3. Security deposits are capped at one month’s rent and must be returned within 14 days of lease expiration or termination for market rate, co-op, and condo rentals. The provisions for rent regulated apartments say that security deposits must be returned at lease-end “or within a reasonable time thereafter.”
4. Pre-paid rent is capped at one month–in other words, landlords are no longer able to charge first and last month’s rent upfront.
5. Late payment fees may only kick in after rent is past due for five days, and cannot exceed $50 or 5% of the monthly rent, whichever is less.