Background Check cost Based upon New NY Rent Laws

[Alex Furini]

Hi all,

Couple of questions for discussion regarding background checks for new tenants in NY based upon the new rent laws.

1. Is the $20 cap on background/credit checks per tenant or for the entire apartment? I.E. apartments larger than 1 bedroom.

2. If you are not collecting a background/credit check fee, but having the tenants pay directly for the service, is that applicable to the cap? I normally collect the fee and pay for the service, but the option is there for tenants to pay directly or provide their own credit check. I always run credit/background checks on new tenants with each costing about $40. For a 3 bedroom apartment that's $120 minimum. That doesn't even begin to factor in if the tenants request to use guarantors.

Just looking for thoughts as I am sure we are all trying to figure out the best way to move forward.

Thanks.

[Andrew Steiker-Epstein]

Hi Alex,

The cap is $20 per person for applications regardless of the size of the apartment or whether you are running the credit report vs if the applicant is paying directly. In addition, you have to provide a receipt to the applicant showing that the credit/background check actually costs at least $20. Applicants are also allowed to provide their own credit/background checks at no charge.

Hope this helps.