Prohibits landlords from charging potential tenants application fees greater than the actual cost of a credit check or other related services paid by the landlord

4 Co-sponsors

• Jesse Hamilton
• Ruth Hassell-Thompson
• Brad Hoylman-Sigal
• José M. Serrano

BILL NUMBER:S2852

Title of bill

An act to amend the real property law, in relation to fees landlords may charge tenants

Purpose or general idea of bill

This bill would allow landlords to charge potential tenants application fees no greater than the actual cost of a credit check or the related services paid to a third party by the landlord.

Summary of specific provisions

Subdivision 1 of the bill defines "application fees", "potential tenants", and "landlords" for the purposes of the new section. Subdivision 2 would allow a landlord to charge an application fee equal to the cost of services paid for by the landlord to a third party. Subdivision 3 would enable a potential tenant to file a complaint with the division of housing and community renewal. If the division determines that the landlord has violated this section a fine of one hundred dollars for a first or second violation may be imposed and a third or subsequent violation may be subject to a fine of two hundred fifty dollars.

Justification

This legislation would strike a balance between providing necessary protection for tenants and enabling landlords to recover the actual costs involved in researching and verifying the credit histories of potential tenants. The practice of charging prospective tenants "application fees" is completely unregulated under present law. As a result, consumers in tight rental markets throughout New York State have been forced to pay as much as $150 just to be considered for rental.

This legislation would curb the abuses which regularly take place in the absence of regulation. Consumer credit reports obtained by TRW and other reporting agencies vary in price, but can be obtained easily through a variety of sources for less than $20.

Fiscal implications

None.

Effective date

This act shall take effect on the ninetieth day after it shall have become a law.