Late fees and fees for background checks are limited by New York L&T law

Landlords in New York are limited in how much they are allowed to charge for two of the most common additional fees, and have been since 2019.

Late fees

While many landlords tack on a late fee when rent is not paid timely, the maximum amount that can be charged under law is $50 or 5%, whichever is lower. A careful accounting of what was charged and when is the best evidence a landlord has to show compliance with this law.

Background check fees

Finding out details about a prospective tenant’s history is an important part of the process for many landlords. However, the amount that can be charged to that potential tenant can’t be higher than $20, which won’t necessarily cover the cost of running that check. If the housing applicant provides a background or credit check that’s less than 30 days old, the landlord can’t charge anything at all. When a check is run, the tenant must be given a copy.

Impact

As discussed in other posts, classified these and other fees as “added rent” does not make it possible to collect that money in an eviction proceeding, and you can’t start an eviction for unpaid fees in any case. Landlords who wish to preserve the right to recoup those costs might consider them when deciding on the base rent for an apartment. If the cost of background checks are a concern, asking the prospective tenant to provide one would ensure that the full cost of the check is borne by that individual, and not the landlord.